Odfjell SE reported its results for the first quarter of 2019. The results reflect an improving chemical tanker spot market and stable underlying results from Odfjell Terminals.
Highlights for the first quarter of 2019:
- Chemical tanker spot rates improved compared to previous quarter.
- Spot rates improved by 16% in main trade lanes compared to previous quarter. This was partly offset by fewer revenue days compared to 4Q18.
- Contract coverage reduced to 50% compared to 59% in 4Q18 as we did not aggressively pursue contracts at historically low rate levels.
- EBITDA of USD 47 million, compared with USD 33 million in 4Q18.
- EBITDA of USD 40 million from Odfjell Tankers compared with USD 27 million in 4Q18. Adjusting for new accounting standards (IFRS 16), Odfjell Tankers’ EBITDA improved to USD 27 million in 1Q19 from an adjusted EBITDA of USD 23 million in 4Q18.
- EBITDA of USD 7 million from Odfjell Terminals compared to USD 5 million in 4Q18.
- The board decided not to recommend a dividend for FY2018.
“The chemical tanker markets improved in the first quarter. We expect this trend to continue as a result of the strong fundamentals in our markets and a firming tanker market in general. We decided not to aggressively pursue or extend contracts at the historically low markets at the end of 2018. This reduces our COA portfolio, but also increases our exposure in the firming market. We expect to continue improving our performance in the coming quarter”, said Kristian Mørch, CEO of Odfjell SE.