Odfjell (ODF) Pareto Securities' Energy Conference 2024 Presentation summary

Business overview and operations

• Specializes in safe, efficient, and sustainable handling of hazardous liquids, operating a fleet of ~70 vessels and four tank terminals globally.

• Transports over 600 different chemicals and liquids, serving as building blocks for various industries and consumer products.

• Employs approximately 2,300 people and maintains a global trading platform across all major deep-sea chemical trade routes.

• Operates 40% of global super-segregator capacity, focusing on specialty chemical logistics.

• Owns and operates four tank terminals in key international shipping hubs, with 1.2 million CBM storage capacity.

Market dynamics and fleet strategy

• Demand for chemical tankers is driven by global GDP growth and centralized chemical production hubs, increasing seaborne volumes and tonne-miles.

• Maintains a versatile fleet with high-quality, energy-efficient chemical tankers, including 32 super-segregators and ongoing newbuilds.

• 65% of tonnage is owned, with an average fleet age of 13 years; fleet expansion is achieved through long-term charters and limited CAPEX.

• The orderbook for core segments remains moderate, with 20% controlled by the company, supporting a favorable supply outlook.

• Net fleet growth is projected to remain low, with recycling balancing new deliveries through 2028.

Commercial performance and financials

• Achieved gross revenue of $1.2 billion and EBITDA of $497 million over the last twelve months, with a market cap of $1.1 billion.

• Maintains a net debt/EBITDA ratio of 1.9x, reflecting a strong balance sheet.

• Generated $882 million in EBITDA and paid $250 million in dividends over the past two years, while reducing interest-bearing debt by $470 million since 2H2020.

• Dividend policy targets 50% payout of adjusted net income semi-annually, with an 18% dividend yield LTM.

• Achieved a significant increase in TCE/day, with cash break-even levels well below current earnings.