Odfjell SE announce 4Q21 results

Odfjell SE today reported its results for the fourth quarter of 2021 and preliminary results for the full year 2021. The report shows an encouraging finish to a difficult year driven by improving Chemical tanker markets in the West and continued strong markets in the East.

Highlights for 4Q21:

  • Timecharter earnings in Odfjell Tankers of USD 136 million, up USD 11 million compared to USD 125 million in 3Q21
  • Net result contribution from Odfjell Terminals of USD 3 million, compared to USD 1 million in 3Q21
  • EBIT of USD 35 million, up USD 42 million compared to USD -7 million in 3Q21
  • Net result of USD 15 million, up USD 40 million compared to USD -25 million in 3Q21
  • Adjusted for one-offs, the 4Q21 net result of USD 10 million is up USD 14 million compared to adjusted net result of USD -4 million in the previous quarter
  • During the COA renewal season, Odfjell renewed a large part of its portfolio, with average rate increases of 2%. Average increases throughout 2021 was 2%
  • FID concluded on Bay-13 at Odfjell Terminals Houston, which will increase its capacity by 32,000 cbm to a total of 411,758 cbm

Highlights – FY 2021

  • A disappointing net result of USD -33 million, mainly due to weak chemical tanker markets in the West impacting results from Odfjell Tankers, yet another year of improved results from operations in Odfjell Terminals
  • Conclusion of the exit from the short-sea trade in Asia, as well as the planned exit from Gas (via the sale of two Ethylene LPG carriers)
  • The company continued to operate well with strong safety performance despite another year of Covid-19 related challenges

“2021 was another challenging and unpredictable year for Odfjell, where we were impacted by the Covid-19 pandemic and a weak CPP market. We continue to operate well despite the challenging environment, and we are also ahead of our ambitious plan to reduce emissions. While we are not satisfied reporting negative results, we are encouraged by the quick recovery seen in our markets during the fourth quarter, which is an indicator of the strong underlying fundamentals in our markets. In line with seasonality, the chemical tanker market has seen slightly reduced activity at the start of 2022, and we therefore expect to report slightly lower results in 1Q22,” said CEO Kristian Mørch.

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