Odfjell SE reported its results for the third quarter of 2019. The 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.

Highlights for the third quarter of 2019:

  • The chemical tanker earnings were seasonally weaker this quarter. Volumes were lower, but freight rates remained stable and with a firmer underlying trend.
  • EBITDA of USD 51 million, compared with USD 57 million in 2Q19.
  • EBITDA of USD 45 million from Odfjell Tankers compared with USD 50 million in 2Q19.
  • EBITDA of USD 6 million from Odfjell Terminals compared to USD 6 million in 2Q19.
  • Net result of USD -1 million compared to USD -10 million last quarter. Adjusted for sales gain, net results were USD -15 million in 3Q19.
  • Spot rates on main tradelanes increased by 2% compared to 2Q19, and our COA rate renewals are up 6.1% YTD 2019.
  • Sep-19 bond repaid without any new issue. New attractive financing secured, which reduces break-even levels.
  • Sale of the company’s Jiangyin terminal concluded, generating USD 21 million in cash proceeds and an equity gain of USD 14 million.
  • 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 normalized 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.