Odfjell offers ‘improved results despite a market facing several uncertainties’
Odfjell SE has 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 what it described as “positive underlying net results for Odfjell SE”.
The highlights were that it reported an EBITDA of USD 66 million, compared to USD 58 million in 4Q19. There was an EBITDA of USD 58 million from Odfjell Tankers compared to USD 50 million in 4Q19. Odfjell Terminals reported an EBITDA of USD 8 million compared to USD 8 million in 4Q19.
There was an overall 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 per cent compared to 4Q19, and the COA rate renewals were up 5 per cent in 1Q20
Elsewhere, attractive refinancing was 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 there are “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
Kristian Mørch, CEO of Odfjell SE: “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.”
For more information visit www.odfjell.com
11th May 2020
