Odfjell SE reported its results for the second quarter of 2020. The report shows a good performance which was mainly due to increased chemical tanker earnings.
Highlights for 2Q20:
- EBITDA of USD 82 million, compared with USD 66 million in 1Q20
- EBITDA of USD 74 million from Odfjell Tankers, compared with USD 58 million 1Q20
- EBITDA of USD 8 million from Odfjell Terminals, same as 1Q20
- Net result of USD 31 million compared with USD -4 million last quarter
- Adjusted for non-recurring items, net results are USD 17 million in 2Q20 compared with adjusted net results of USD 1 million last quarter
- COA rate renewals up 6% in 2Q20
- COA coverage dropped to 35% during the quarter, which enabled Odfjell to take advantage of a strong spot market. COA coverage increased towards the end of the quarter and has continued to do so into the third quarter, where it is expected to stay within a range of 45% – 55%
- Odfjell has so far only experienced limited financial negative effects from Covid-19, but take precautionary measures if the slowdown in the global economy should accelerate
- Crew changes continue to be extremely difficult despite many governments having signed statement to define seafarers as essential workers
“2Q20 was a good quarter for Odfjell due to a continued firming chemical tanker market and a firm spot market. We are happy to report positive figures in light of the unprecedented times of the global economy. This shows the agility and resilience of our global platform and business model. Covid-19 continues to cast high uncertainty about the future, but we are so far not experiencing any major negative impact overall in our markets. We expect 3Q20 to be impacted by usual seasonality and we therefore anticipate to report weaker, but still positive, results in the next quarter”, CEO Kristian Mørch said.