Odfjell SE 1Q20: Improved results despite a market facing several uncertainties

Image used for representational purposes only (Image Courtesy: Odfjell SE)

Odfjell SE today reported its results for the first quarter of 2020. The report shows improved results driven by increased earnings in Odfjell Tankers as a consequence of an improved chemical tanker market. This led to positive underlying net results for Odfjell SE.

Highlights for 1Q20

  • EBITDA of USD 66 million, compared to USD 58 million in 4Q19
  • EBITDA of USD 58 million from Odfjell Tankers compared to USD 50 million in 4Q19
  • EBITDA of USD 8 million from Odfjell Terminals compared to USD 8 million in  4Q19
  • Net result of USD -4 million compared to USD -10 million in the last quarter
  • Adjusted for non-recurring items, net results were USD 1 million in 1Q20 compared to adjusted net results of USD -7 million in the last quarter
  • Spot rates on main tradelanes improved by 6% compared to 4Q19, and the COA rate renewals were up 5% in 1Q20
  • Attractive refinancing secured for Odfjell Terminals USA, positioning the Houston terminal for accretive growth
  • Odfjell SE did not experience any operational disturbances or unexpected cost from the IMO 2020 transition
  • So far no significant disruptions in operations resulting from Covid-19, but the company expects that demand will be negatively affected by a global economic impact caused by the pandemic

“1Q20 showed continued improvement in our underlying results, but the Covid-19 pandemic is beginning to impact COA volumes and creates uncertainty for future market developments, and we take precautionary measures for the company. We expect to report slightly weaker results in 2Q20. We are pleased to have reached an important milestone by refinancing our terminals in USA, which enables the terminals to be self-funded and capable of executing our growth plans at the Houston terminal’’, said Kristian Mørch, CEO of Odfjell SE.

Sea News, May 7

Baibhav Mishra
Author: Baibhav Mishra

Associate Editor, Sea News