Odfjell Se Class A · OSL:ODF
Odfjell Se Class A — Q1 2024 Earnings Presentation
23 slides from Odfjell Se Class A's earnings presentation, May 8, 2024
Slide 1: First quarter 2024
First quarter 2024 Presentation by CEO Harald Fotland and CFO Terje Iversen 8 May 2024
Slide 2: Agenda
Agenda 01 Highlights 02 Financials 03 Operational review 04 Market update and prospects
Slide 3: Quarterly highlights
Quarterly highlights Key figures USD million, unaudited 2Q23 3Q23 4Q23 1Q24 1Q23 Timecharter earnings 185.1 183.9 181.7 194.7 180.5 1Q24 was a record quarter for Odfjell driven by strong markets. The rerouting Total opex, TC, G&A (69.6) (71.8) (75.4) (71.1) (72.4) of vessels away from the Red Sea ha
Slide 4: Agenda
Agenda 01 Highlights 02 Financials 03 Operational review 04 Market update and prospects
Slide 5: Income statement, Odfjell Group
Income statement, Odfjell Group Developments and key take-aways Income statement A. TCE of USD 195 mill, an increase of USD 13 mill compared to 4Q23 USD million, unaudited 3Q23 4Q23 1Q24 A i. Higher rates both for our COA and spot volumes, and an increased share of Net Timecharter Earnings (TCE) 183
Slide 6: TCE per day improved significantly in the quarter, while our cash break-even decreased
TCE per day improved significantly in the quarter, while our cash break-even decreased Odfjell tankers break-even vs. TCE per day USD/day 34,000 33,000 TCE/day 33,005 32,000 Break-even target 31,000 Cash break-even/day (12m rolling avg.) 30,000 29,000 ▪ Our TCE per day was up at USD 33,005 in 1Q24 c
Slide 7: Balance sheet, Odfjell Group
Balance sheet, Odfjell Group Assets Developments and key take-aways USD million, unaudited 3Q23 4Q23 1Q24 Ships and newbuilding contracts 1,248.7 1,279.4 1,265.1 A. During the quarter took delivery of the 26k dwt vessel, Bow Lynx on long-term A time charterparty. Right of use assets 258.6 237.7 254.
Slide 8: Cash flow, Odfjell Group
Cash flow, Odfjell Group Cash flow Developments and key take-aways USD million, unaudited 3Q23 4Q23 1Q24 Net profit 51.4 52.5 68.0 A. Operating cash flow decreased to USD 90.7 mill in 1Q24 from USD 101.4 mill in 4Q23, driven by increased working capital. Adjustments 36.0 35.4 35.0 Change in working
Slide 9: Free cash flow strengthened further in 1Q24
Free cash flow strengthened further in 1Q24 Odfjell free cash flow per quarter Cash flow from Cash flow from Free cash flow Free Cash flow after operations investments (12mo. rolling) debt right of use assets (12mo. rolling) USD mill. -2 32 37 66 45 72 74 76 42 107 93 64 82 ▪ Operating cash flow in
Slide 10: Continued deleveraging lowers cost of capital and break-even
Continued deleveraging lowers cost of capital and break-even Extraordinary debt repayment of USD 25m in 1Q24, and refinancing of six super-segregators in April 140 121 Bond 120 Balloons 100 91 Loan instalments ▪ Balloon in 2Q24 is the refinancing of a Lease capital repayments revolving credit facili
Slide 11: Agenda
Agenda 01 Highlights 02 Financials 03 Operational review 04 Market update and prospects
Slide 12: Rates lifted to new heights in 1Q24, driven by the trade flow disruptions
Rates lifted to new heights in 1Q24, driven by the trade flow disruptions on top of a tight market balance Odfix vs. Clarksons Chemical Tanker Spot Index Gulf of Aden – Chemical and product tanker transits Chemical Chemical tankers Product tankers Product dwt mill. dwt mill.. +6.8% 210 1.2 6.5 200 O
Slide 13: 1Q24 was an active quarter for COA renewals, and we continue to increase our rates
1Q24 was an active quarter for COA renewals, and we continue to increase our rates ▪ We renewed ~22% of our existing contracts in the quarter with an average rate increase of ~14%, These figures also include contracts where customers have exercised option periods, with rates rolled over at or around
Slide 14: Odfjell’s carbon intensity was within targets in the quarter
Odfjell’s carbon intensity was within targets in the quarter Odfjell carbon intensity (CII) -52.4% 15.0 15 ▪ In 1Q24, the carbon intensity for the Odfjell-controlled fleet was 7.14 – slightly lower than the average for the full-year 2023. 10 8.9 8.8 ▪ Odfjell has launched a Transition Finance Framew
Slide 15: Tank Terminals
Tank Terminals Performance Total capacity at Odfjell Terminals (1,000 cbm) ▪ Average commercial occupancy rate at our Antwerp Existing capacity Cap. added in 2024 Capacity under construction terminal was of 100% in the quarter, and the Ulsan terminal 500 experienced a quarter-on-quarter increase in
Slide 16: Agenda
Agenda 01 Highlights 02 Financials 03 Operational review 04 Market update and prospects
Slide 17: New supply disruptions contributed to further firming of spot markets
New supply disruptions contributed to further firming of spot markets 1Q24 highlights West of Suez 1Q24 highlights Eest of Suez ▪ Most trade lanes west of Suez saw spot rates stabilize throughout the ▪ The picture was varied east of Suez, but spot rates increased throughout quarter, with the USG-Eur
Slide 18: The chemical tanker market remains tight
The chemical tanker market remains tight Seaborne chemical volumes are stable, and swing tonnage keep preferring CPP cargoes Seaborne chemical volume lifted on core chemical tankers and product tankers Mill. tons Percent of product seaborne chem/veg tankers lifting chem/veg 40 12% 11% 35 10% 30 9% 8
Slide 19: The core chemical tanker orderbook is at low levels
The core chemical tanker orderbook is at low levels Especially within the segment of large, stainless vessels, ordering is limited, and delivery times are long Fleet and orderbook Deliveries per year (deep-sea) DWT mill. DWT mill. 32 2.0 30 Orderbook Orderbook 28 26 Fleet Delivered 20% of orderbook
Slide 20: Trade flow disruptions likely to continue into the second half of 2024, limiting supply
Trade flow disruptions likely to continue into the second half of 2024, limiting supply in an already tight market External factors’ impact going forward Macroeconomic ▪ Geopolitical tension, particularly the situation in the Red Sea, will ▪ Parts of value chain currently have low inventories, indic
Slide 21: Summary
Summary Our results ▪ Odfjell achieved a record result in 1Q24, with strong markets and good operational performance. ▪ Time charter earnings increased significantly in 1Q24 as the rerouting of vessels away from the Red Sea has Odfjell Tankers elevated freight rates further. ▪ Net result contributio
Slide 22: Capital Markets Day 2024
Capital Markets Day 2024 Date: Monday 13 May 2024 Time: 10:00 – 13:00 Venue: Hotel Continental, Stortingsgata 24/26, Oslo To attend, please send e-mail to Investor Relations at: nils.jorgen.selvik@odfjell.com, by 10 May 2024 22
Slide 23: Contact
Contact Investor Relations Nils Jørgen Selvik | Tel: +47 920 39 718 | E-mail: nils.jorgen.selvik@odfjell.com Media Anngun Dybsland | Tel: +47 415 48 854 | E-mail: media@odfjell.com ODFJELL SE | Conrad Mohrs veg 29 | P.O. Box 6101 Postterminalen | 5892 Bergen | Norway Tel: +47 55 27 00 00 | E-mail: m