Slightly weaker second quarter for Odfjell

Odfjell Tankers

Odfjell SE reported results for 2Q 2017. The results reflect a weaker spot market for chemical tankers, however the Company’s contract portfolios in both chemical tankers and terminals continue to soften the impact of the challenging markets.

Odfjell SE reports EBITDA of USD 41 mill compared to USD 46 mill in 1Q 2017 and a net result of -USD 5 mill compared to USD 2 mill in 1Q 2017.

Highlights for the second quarter of 2017:

· Odfjell chemical freight index (ODFIX) down 1.3% compared to previous quarter
· Chemical Tankers EBITDA: USD 31 mill compared to USD 36 mill in the previous quarter. The key deviation relates to a weaker spot market
· Odfjell Terminals EBITDA: USD 10 mill compared to USD 9 mill in the previous quarter
· Acquisition of five vessels from Chemical Transportation Group (CTG) completed our current growth target. Attractive financing has been secured for the entire fleet growth programme
· The potential sale of Odfjell SE’s share of the terminal in Singapore has generated high interest from potential investors

“We are not satisfied reporting a net loss for the quarter, but our operational performance remains strong. The CTG transaction completed our current growth ambitions and ensures that Odfjell can continue to offer competitive and efficient service to our customers”, said Kristian Mørch, CEO of Odfjell SE.

Prospects:

Odfjell SE expects 3Q 2017 results to be marginally lower than 2Q 2017, but 2H 2017 to be in line with 1H 2017.

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