Odfjell (ODF) Q3 2024 earnings summary

Executive summary

• Delivered strong 3Q24 results with net result of USD 71 million, the second-best in company history, despite softer spot markets and lower time charter earnings compared to 2Q24.

• Maintained high operational efficiency and safety, with no significant incidents and stable cargo volumes at 3.3 million tons.

• Stable contribution from Odfjell Terminals and continued progress on fleet expansion and sustainability initiatives.

• Freight rates remained healthy despite a decline in spot rates; volumes were stable.

• Declared purchase option for a 41,000 dwt vessel post-quarter, to be delivered in early 2026.

Financial highlights

• Net time charter earnings were USD 202.1 million, down from USD 215 million in 2Q24 due to lower spot rates and reduced contract nominations.

• EBITDA reached USD 132.3 million, down from USD 147.2 million in 2Q24; EBIT was USD 91 million, compared to USD 107 million in 2Q24.

• Net result was USD 71.3 million, with EPS of USD 0.90; time charter earnings per day were USD 33,906, down from USD 36,493 in 2Q24.

• Operating cash flow hit a record USD 118 million, with free cash flow at USD 116 million.

• Cash and cash equivalents stood at USD 144 million; available liquidity including undrawn facilities at USD 231 million.

Outlook and guidance

• Expect another strong 4Q24, but likely below 3Q24 due to weakening spot markets.

• Market expected to pick up seasonally towards year-end, with product tanker and swing tonnage developments as key drivers.

• Continued stable contributions from terminals anticipated.

• Tight supply in core market expected to support earnings as swing tonnage returns to CPP trades.