Odfjell reports seasonally lower volumes, but market remains on a firmer trend

Odfjell SE third quarter results reflect a chemical tanker market impacted by seasonally lower volumes that were also affected by geopolitical tensions towards the end of the quarter. Freight rates were stable compared to the previous quarter.

The chemical tanker earnings were seasonally weaker this quarter. Volumes were lower, but freight rates remained stable and with a firmer underlying trend.

The company reported an EBITDA of $51 million, compared with $57 million in 2Q19. Odfjell Tankers reported an EBITDA of $45 million compared with $50 million in 2Q19.

Spot rates on main tradelanes increased by 2 per cent compared to 2Q19, and COA rate renewals are up 6.1 per cent YTD 2019.

The company also took delivery of Bow Orion, the world’s largest and most energy-efficient stainless steel chemical tanker.

“The third quarter was impacted by the usual seasonal slowdown in volumes while rates remained stable. Since then, the market has normalised and we are encouraged to see improvement in volumes and improved crude and product tanker markets, which should positively impact our markets going forward. We are further encouraged by ongoing improvement in contract rates and that customers are accepting pass-through of potentially higher bunker costs related to IMO 2020. We expect to report improved results in the fourth quarter’’, said Kristian Mørch, CEO of Odfjell SE.

For more information visit www.odfjell.com

11th November 2019