Odfjell Se Class A · OSL:ODF
Odfjell Se Class A — Q2 2024 Earnings Presentation
23 slides from Odfjell Se Class A's earnings presentation, Aug 21, 2024
Slide 1: Quarterly results | 2Q-2024
Quarterly results | 2Q-2024 Presentation by CEO Harald Fotland and CFO Terje Iversen August 21, 2024
Slide 2: Index
Index Highlights Financials Operational review Market update and prospects
Slide 3: Quarterly highlights Key figures
Quarterly highlights Key figures USD million, unaudited 3Q23 4Q23 1Q24 2Q24 2Q23 YTD24 Time charter earnings 183.9 181.7 194.7 214.8 185.1 409.5 2Q24 was a new record quarter for Odfjell, with the markets at elevated levels Total opex, TC, G&A (71.8) (75.4) (71.1) (70.5) (69.6) (141.7) after freight
Slide 4: Index
Index 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 215 mill, an increase of USD 20 mill compared to 1Q24 USD million, unaudited 4Q23 1Q24 2Q24 A i. Higher rates both for our COA and spot volumes during the quarter. Net Timecharter Earnings (TCE) 181.7 194.
Slide 6: Odfjell had another quarter of significantly improved TCE per day, while our cash break-even decreased
Odfjell had another quarter of significantly improved TCE per day, while our cash break-even decreased Odfjell tankers break-even vs. TCE per day USD/day 38,000 TCE/day 36,000 Break-even target 36,493 Cash break-even/day (12m rolling avg.) 34,000 32,000 ▪ Our TCE per day was up, ending at USD 36,493
Slide 7: Balance sheet, Odfjell Group
Balance sheet, Odfjell Group Assets Developments and key take-aways USD million, unaudited 4Q23 1Q24 2Q24 Ships and newbuilding contracts 1,279.4 1,265.1 1,256.4 A. During the quarter we took delivery of the 26k dwt vessel, Bow Jaguar on long- A term time charterparty. Right of use assets 237.7 254.
Slide 8: Cash flow, Odfjell Group
Cash flow, Odfjell Group Cash flow Developments and key take-aways USD million, unaudited 4Q23 1Q24 2Q24 Net result 52.1 67.8 88.2 A. Operating cash flow increased to USD 108 mill in 2Q24 from USD 91 mill in 1Q24, driven by increased earnings and reduced expenses. Adjustments 35.8 35.1 36.8 B Change
Slide 9: 2Q24 was another strong, cash-generating quarter
2Q24 was another strong, cash-generating quarter 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 32 37 66 45 72 74 76 42 107 93 64 82 91 mill. 120 ▪ Operating cash f
Slide 10: Few upcoming maturities for 2H, with some leasing facilities to be refinanced to lower cost of capital
Few upcoming maturities for 2H, with some leasing facilities to be refinanced to lower cost of capital 140 120 Bond 120 Balloons 100 Loan instalments Lease capital repayments ▪ We concluded a refinancing facility of six 80 super-segregators in Q2 which improved 60 our break-even and increased our un
Slide 11: Capex & TC commitments
Capex & TC commitments Capex including purchase options USD million, 2H24 2025 2026 2027 ▪ We have in 3Q23 and 2Q24 declared purchase options for two 41k dwt vessels Declared purchase options: currently on bareboat to Odfjell. The first of these vessels, Bow Aquarius to be Bow Aquarius 35.5 delivere
Slide 12: Index
Index 01 Highlights 02 Financials 03 Operational review 04 Market update and prospects
Slide 13: Odfjell and the chemical tanker market had a strong second quarter
Odfjell and the chemical tanker market had a strong second quarter Trade disruptions continues to affect our market, but as the Panama Canal is approaching normal transit levels, average sailing distances is expected to decline somewhat Odfix vs. Clarksons Chemical Tanker Spot Index Panama Canal – C
Slide 14: Rates on renewed COAs have increased for 13 straight quarters
Rates on renewed COAs have increased for 13 straight quarters ▪ We renewed ~6% of our existing contracts in the quarter with an average rate increase of 5%. ▪ Total volumes climbed slightly in 2Q24 after the first quarter of the year saw volumes negatively impacted from longer sailing distances due
Slide 15: Odfjell's carbon intensity was within targets in the quarter
Odfjell’s carbon intensity was within targets in the quarter Odfjell carbon intensity (CII) -53.0% 15.0 15 ▪ In 2Q24, the carbon intensity for the Odfjell-controlled fleet was 7.05 – stable from previous quarter and 10 slightly lower than the average for the full-year 2023. 8.9 8.8 8.3 8.0 ▪ After t
Slide 16: Tank Terminals
Tank Terminals Performance Total capacity at Odfjell Terminals (1,000 cbm) Existing capacity Cap. added in 2024 Capacity under construction ▪ Our terminals continue to perform well, maintaining an average commercial occupancy rate of 96.9% in 2Q24. 500 412 28 ▪ Our terminal in Antwerp ended the quar
Slide 17: Index
Index 01 Highlights 02 Financials 03 Operational review 04 Market update and prospects
Slide 18: Chemical tanker rates were strong in the second quarter
Chemical tanker rates were strong in the second quarter 2Q24 highlights West of Suez 3Q24 highlights East of Suez ▪ Panama transits climbed towards normal levels through the second ▪ Export volumes were strong both in the Asia and Middle East regions, but quarter demand in China has been muted for t
Slide 19: The balance between supply and demand remains tight
The balance between supply and demand remains tight Global seaborne chemical volumes are stable, and swing tonnage is at low levels despite a slight recent increase Mill. tons Seaborne chemical volume lifted on core chemical tankers and product tankers Percent of product seaborne chem/veg tankers li
Slide 20: The chemical tanker supply outlook remains beneficial
The chemical tanker supply outlook remains beneficial Despite a pick-up of ordering, the orderbook is moderate and largely set to replace aging vessels Fleet and orderbook Deliveries per year (core, deep-sea) DWT mill. DWT mill. 34 2.0 32 Orderbook Delivered 30 28 Fleet Orderbook 20% 26 of orderbook
Slide 21: The market remains tight despite the summer slowdown and increased transit capacity in Panama
The market remains tight despite the summer slowdown and increased transit capacity in Panama External factors’ impact going forward Macroeconomic ▪ Geopolitical tension will continue to affect our markets. The ▪ Chinese growth has picked up slower than expected, causing situation in the Red Sea and
Slide 22: Summary
Summary ▪ Odfjell achieved a new record result in 2Q24 at the back of a robust contract portfolio and excellent operational Our results performance ▪ Time charter earnings increased significantly in 2Q24 as the freight rates stayed at elevated levels after increasing Odfjell Tankers towards the end
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