Odfjell SE today reported results for Q1 2017. The results reflect the continued softness in the chemical tankers market, however underlying operational performance remains stable with EBITDA of USD 46 mill compared to 48 mill in Q4 2016.
Odfjell presents slightly improved revenue despite a highly competitive market with rising bunker prices.
Highlights for the first quarter of 2017:
Odfjell chemical freight index up 1.3% compared to previous quarter
Chemical Tankers EBITDA: USD 36 mill, which is identical to fourth quarter 2016. Fleet renewal programme for large stainless steel chemical tankers nearly completed
Odfjell Terminals: Stable results. A process is initiated to explore the potential sale of our share in Oiltanking Odfjell Terminals Singapore
Odfjell Terminals continues the development of the first dedicated ethylene export terminal in the US at our Houston facility in Texas. Final investment decision is not taken
The Board of Directors has recommended a dividend of NOK 1.50 per share to be voted on at the Company’s Annual General Meeting 11 May
“We expect 2017 to remain challenging, but our underlying operational performance is stable. Over the past two quarters we have taken crucial steps in renewing our core fleet at a very low point in the price cycle”, said Kristian Mørch, CEO of Odfjell SE.
2017 remains challenging, and we expect the 2Q17 timecharter results to be marginally lower than 1Q17. In a long-term perspective, we believe our markets to be fairly balanced and to gradually improve.