Odfjell Se Class A · OSL:ODF
Odfjell Se Class A — Q3 2024 Earnings Presentation
23 slides from Odfjell Se Class A's earnings presentation, Nov 6, 2024
Slide 1: Quarterly results | 3Q-2024
Quarterly results | 3Q-2024 Presentation by CEO Harald Fotland and CFO Terje Iversen November 6, 2024
Slide 2: Index
Index Highlights Financials Operational review Market update and prospects
Slide 3: Quarterly highlights and key figures
Quarterly highlights Key figures USD million, unaudited 4Q23 1Q24 2Q24 3Q24 3Q23 YTD24 Time charter earnings 181.7 194.7 214.8 202.1 183.9 611.7 Odfjell delivers strong 3Q24 results amid softer spot market Total opex, TC, G&A (75.4) (71.1) (70.5) (72.8) (71.8) (214.5) ▪ Odfjell’s strong performance
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 202 mill, a decrease of USD 13 mill compared to 2Q24 USD million, unaudited 1Q24 2Q24 3Q24 A i. Spot freight rates came down during the quarter in line with market Net Timecharter Earnings (TCE) 194.7 214.
Slide 6: TCE per day declined, and cash break-even increased somewhat during the quarter
TCE per day declined, and cash break-even increased somewhat during the quarter Odfjell tankers break-even vs. TCE per day USD/day 38,000 TCE/day 36,000 Break-even target Cash break-even/day (12m rolling avg.) 34,000 33,906 ▪ Our TCE per day ended at USD 33,906 in 3Q24, down from USD 36,493 in previ
Slide 7: Balance sheet, Odfjell Group
Balance sheet, Odfjell Group Assets Developments and key take-aways USD million, unaudited 1Q24 2Q24 3Q24 Ships and newbuilding contracts 1,265.1 1,256.4 1,238.5 A. During the quarter took delivery of the 26k dwt Bow Cougar on long-term time A charterparty, increasing right of use assets and debt re
Slide 8: Cash flow, Odfjell Group
Cash flow, Odfjell Group Cash flow Developments and key take-aways USD million, unaudited 1Q24 2Q24 3Q24 Net result 67.8 88.2 71.3 A. Operating cash flow increased to USD 118 mill in 3Q24 from USD 108 mill in 2Q24, driven by continued strong results and an improved working capital. Adjustments 35.1
Slide 9: Record strong free cash flow in 3Q24
Record strong free cash flow in 3Q24 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 37 66 45 72 74 76 42 107 93 64 82 91 116 mill. ▪ Operating cash flow in 3Q24 was
Slide 10: Few upcoming maturities or financing transactions in the coming quarters
Few upcoming maturities or financing transactions in the coming quarters, exploring alternatives for vessels currently on lease to us Bond ▪ Nominal interest-bearing debt was USD 140 Balloons 769m at quarter end, expected to decrease 121 Loan instalments 120 to USD 748m by year end Lease capital rep
Slide 11: Capex & TC commitments
Capex & TC commitments Capex including purchase options USD million, 2H24 2025 2026 2027 ▪ We have after end of 3Q24 declared purchase option for the vessel Bow Hercules, Declared purchase options: for delivery 1Q26. This is the remaining vessels of three 41k dwt vessels currently Bow Aquarius 35.5
Slide 12: Index
Index 01 Highlights 02 Financials 03 Operational review 04 Market update and prospects
Slide 13: While still in a strong market, headwinds were more pronounced
While still in a strong market, headwinds were more pronounced MR and LR1 product tankers have lost market share to larger vessel classes, leading some product tanker owners to swing into chemicals Odfix vs. Clarksons Chemical Tanker Spot Index Vessel class share of CPP volumes, East of Suez to Atla
Slide 14: Limited COA renewal activity in 3Q24, we expect higher activity in the coming quarters
Limited COA renewal activity in 3Q24, we expect higher activity in the coming quarters ▪ Limited number of contracts were renewed during the quarter, with an average rate increase of 7%. Significantly higher renewal activity expected in 4Q24. ▪ Total volumes were stable during the 3Q24 and has been
Slide 15: Odfjell's carbon intensity remained within target in the quarter
Odfjell’s carbon intensity remained within target in the quarter Odfjell carbon intensity (CII) -52.0% 15.0 15 ▪ In 3Q24, the carbon intensity for the Odfjell-controlled fleet was 7.2 – a slight uptick from the previous quarter 10 due to seasonal effects. 8.9 8.8 8.3 8.0 ▪ Installation of suction sa
Slide 16: Tank Terminals
Tank Terminals Performance Total capacity at Odfjell Terminals (1,000 cbm) ▪ Our terminals continue to perform well, maintaining an average commercial Existing capacity Cap. added in 2024 Capacity under construction occupancy rate of 95.2% in 3Q24 600 500 ▪ Financial performance is stable, with EBIT
Slide 17: Index
Index 01 Highlights 02 Financials 03 Operational review 04 Market update and prospects
Slide 18: Rates remain high in a historical context, but the sentiment is softening
Rates remain high in a historical context, but the sentiment is softening MR earnings – Atlantic and Pacific Chemical freight rates - West of Suez Chemical freight rates – East of Suez (1,000 USD/day) (USD/mt) (USD/mt) 70 240 240 65 YTD24 YTD24 YTD24 Atlantic Basket 220 USG-Far East Europe-USG 220 M
Slide 19: Demand remains stable, further uptick in swing tonnage
Demand remains stable, further uptick in swing tonnage Swing tonnage has increased, but is expected to retreat as CPP markets are expected to strengthen towards year-end Mill. tons Seaborne chemical volume lifted on core chemical tankers and product tankers Percent of product seaborne chem/veg tanke
Slide 20: Supply outlook remains beneficial despite uptick in orderbook
Supply outlook remains beneficial despite uptick in orderbook Lead times are long, and the aging fleet means a significant share of orders are replacement tonnage Fleet and orderbook Deliveries per year (core, deep-sea) DWT mill. DWT mill. Core, deep-sea 34 2.0 32 Orderbook Delivered 30 28 Fleet Ord
Slide 21: Seasonality effects and market developments bode for gradual improvement through the fourth quarter
Seasonality effects and market developments bode for gradual improvement through the fourth quarter External factors’ impact going forward Macroeconomic ▪ Geopolitical tension is high, with high-risk situations in Ukraine/ ▪ Global chemical production 1H-2024 was up ~6% compared to the Russia and th
Slide 22: Summary
Summary Our results ▪ Odfjell delivered another solid financial result in 3Q24, somewhat below record levels from previous quarter. ▪ Time charter earnings decreased in 3Q24 as spot freight rates have fallen since the peak in 2Q24. Increased levels Odfjell Tankers of swing tonnage in our segment lat
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 | 5892 Bergen | Norway Tel: +47 55 27 00 00 | E-mail: mail@odfjell.com