Odfjell SE: Stable chemical tanker rates, but CPP markets are putting pressure on earnings

11 Feb 2021

Odfjell SE today reported its results for the fourth quarter of 2020. The report shows stable chemical tanker rates, but a very weak CPP market and increasing fuel prices kept pressure on earnings.

Highlights for 4Q20
• EBITDA of USD 66 million, compared with USD 72 million in 3Q20
• Net result of USD -3 million compared to USD 4 million last quarter
• COA rate renewals were up 2.7% and continue the firming trend
• Established two new pools, Odfjell Coated MR and Odfjell Handy pool
• Odfjell SE acquired Lindsay Goldberg's indirect 24.5% shareholding in Odfjell Terminals Korea
• A fire occurred at Odfjell Terminals Houston in December. A force majeure was declared and subsequently lifted in January

Highlights - FY 2020

• Net results of USD 28 million with Odfjell Tankers reporting its strongest results since 2016 and another year of improved results from Odfjell Terminals
• Concluded the largest fleet renewal program in the history of the company
• Strong safety and operational performance despite challenging circumstances

"4Q20 concluded a year with challenging circumstances, but despite the pandemic we have delivered stronger results and performed on important operational and safety measures. We have concluded the largest fleet renewal program in our history and taken important steps to further streamlining our terminal division. We are fully prepared to take advantage of strong underlying fundamentals in our markets once Covid-19 reduces its impact on the global economy. 2021 has started with a continued weak CPP market and high fuel cost, so although rates in chemicals remain stable, we expect to report a weaker 1Q21", CEO Kristian Morch said.

Please see attached for the 4Q20 report and presentation. Odfjell SE will present the results in a live webcast at 09:00 CET today, followed by a Q&A session.

Follow the webcast at https://www.odfjell.com/investor/webcast/. Questions can be posted in the webcast player during the live presentation.

The Odfjell Group is one of the leading players in the global market for seaborne transportation and storage of chemicals and other specialty bulk liquids.

The Odfjell fleet comprises of approx. 90 ships, which trade both globally and regionally. The tank terminal division consists of five tank terminals and is part of a network of another 12 tank terminals partly owned by related parties.

The tank terminals are strategically located at selected international shipping hubs. The Odfjell Group's headquarters are in Bergen, Norway, and the Group has offices in 13 locations around the world.

Odfjell employs around 2300 staff and posted annual gross revenue of USD 872 million in 2019. Read more on Odfjell.com.

Odfjell press release