Odfjell (ODF) Q4 2023 earnings summary

Executive summary

• FY23 net result reached a record $203.3m; total FY dividends were $99m.

• Higher COA volumes and firmer spot rates offset fewer revenue days from increased docking activity.

• Earnings were expected to increase slightly in 2024 and in 1Q24, supported by tight market fundamentals, high utilization and canal disruptions.

Financial highlights

• FY23 time-charter earnings were $731.2m, EBITDA $450.9m, EBIT $293.8m and net result $203.3m; EPS was $2.57.

• 4Q23 time-charter earnings were $181.7m versus $183.9m in 3Q23; EBIT was $70.9m versus $76.1m.

• 4Q23 net result was $52.1m versus $51.9m in 3Q23; adjusted net result was $50m versus $49m.

• FY23 operating cash flow was $348.1m; 4Q23 operating cash flow was $101.4m.

Outlook and guidance

• Earnings were expected to increase slightly in 1Q24 as Red Sea rerouting raised tonne-mile demand and Panama Canal restrictions persisted.

• Strong markets and limited CAPEX commitments were expected to support continued strong free cash flow; cash break-even was expected to decrease as docking eased.

• Chemical volumes were expected to grow in most regions in line with GDP; newbuild and swing-tonnage supply was expected to remain historically low.

• Tank terminals were expected to deliver somewhat stronger underlying 1Q24 results; Houston capacity scheduled to come on stream in 1Q24 was expected to contribute positively.