Odfjell SE: First quarter 2021 results impacted by seasonality and weather disruptions

Odfjell SE today reported its results for the first quarter of 2021. The report shows that the chemical tanker market and Odfjell’s results were negatively influenced by seasonality, disruptions of COA volumes caused by the unprecedented freeze in Texas, and a challenging CPP market. 

 Highlights for 1Q21
”The first quarter of 2021 was impacted by a challenging chemical tanker market with disruptions in supply chains due to extraordinary weather conditions and Covid-19, and a weak CPP market. Underlying fundamentals remain strong, and we expect our markets to improve throughout the year. Following the end of the largest fleet renewal program in the history of the company, we are now well positioned to generate improved free cash flow and strengthen our balance sheet. We expect to report improved results in 2Q21”, CEO Kristian Mørch said. 

• Timecharter earnings in Odfjell Tankers of USD 120 million compared to USD 125 million in  4Q20
• Net result contribution from Odfjell Terminals of USD 0.2 million compared to USD -0.6 million 4Q20
• EBIT of USD 8 million compared to USD 18 million in 4Q20
• Net result of USD -16 million compared to USD -3 million in 4Q20. Excluding extraordinary items, net result was USD -14 million compared to USD -1 million in 4Q20
• Temporary blocking of the Suez Canal had minor impact on operations
• Reported Annual Efficiency (AER) for Odfjell’s managed fleet as of 1Q21 is 8.53, slightly up from 8.44 in 1Q20, but ahead of the Sustainability Performance Target trajectory: On track towards the set company goal for 2030
• Acquired JV partner’s share in Odfjell Gas’ two gas carriers and the vessels are now owned and incorporated in Odfjell Tankers
• The Board decided not to recommend a dividend for FY 2020