Odfjell said in its 2019 Q4 update that the chemical tanker market began its recovery last year, and the company will continue to strengthen in line with that, “based on healthy fundamentals”.

Kristian Mørch, CEO of Odfjell SE, said: “The start of Q419 was negatively impacted by geopolitical tension in the Middle East, but the quarter ended on a strong note. We have also experienced a successful transition to the use of new compliant fuel in line with the IMO 2020 regulations.” 

Among its highlights, it listed EBITDA of USD 58 million, compared with USD 51 million in 3Q19; EBITDA of USD 50 million from Odfjell Tankers, compared with USD 45 million in 3Q19; and EBITDA of USD 8 million from Odfjell Terminals, compared to USD 6 million in 3Q19. 

It recorded a net result of USD -10 million compared to USD -1 million last quarter, but when adjusted for non-recurring items, net results were USD -7 million in 4Q19, compared to adjusted net results of USD -15 million last quarter.

Spot rates on the main tradelanes increased by 12 per cent compared to 3Q19, and the COA rate renewals were up 6.5 per cent in 2019.

Looking forward, Mørch added: “We expect further improvements in our results in 1Q20”. 

Although the update warned that the outcome and development of the Coronavirus “has become a risk factor and may impact demand going forward”. 

For more information visit www.odfjell.com

13th February 2020