Odfjell (ODF) Q2 2024 earnings summary

Executive summary

• Achieved record quarterly net result of USD 88 million in 2Q24, up from USD 67.8 million in the previous quarter, driven by strong market conditions, robust contract portfolio, and high operational efficiency, with no significant safety incidents.

• Time charter earnings reached USD 250 million, a USD 20 million increase from the first quarter, with firm freight rates and high utilization.

• Board approved a USD 1.00 per share dividend based on adjusted 1H24 results.

• Safety performance remained strong, with all KPIs within target and carbon intensity targets met.

Financial highlights

• EBIT rose to USD 107.4 million from USD 88.5 million in 1Q24; EBITDA increased to USD 147.2 million from USD 126.8 million sequentially.

• Operating cash flow was USD 108 million, up from USD 91 million, with free cash flow at USD 91 million for the quarter.

• Cash and cash equivalents ended at USD 141 million, with total available liquidity of USD 231 million including undrawn facilities.

• EPS was USD 1.12 in 2Q24, up from USD 0.86 in 1Q24.

• IFRS adjusted equity ratio stood at 51%.

Outlook and guidance

• 3Q24 is expected to be another strong quarter, though somewhat below 2Q24 due to seasonal spot rate trends.

• Spot markets anticipated to pick up towards the end of 3Q24 after summer slowdown.

• Stable underlying results expected from Odfjell Terminals.

• Aim to reduce cash break-even to USD 21,000 per day in coming quarters.