Odfjell SE (STU:O7F) Q3 2024 Earnings Call Highlights: Navigating Challenges with Record Free ...

GuruFocus News
3 min read

In This Article:

  • Time-Charter Earnings: USD212 million, down from USD215 million in Q2.

  • EBIT: USD91 million, compared to USD107 million in Q2.

  • Net Result: USD71 million, compared to USD88 million in Q2.

  • Net Timecharter Earnings: USD202.1 million, down from USD214.8 million in Q2.

  • Operating Expenses: USD53.7 million, increased by USD2.7 million from Q2.

  • G&A Expenses: USD17.9 million, up from USD16.2 million in Q2.

  • EBITDA: USD132.3 million, down from USD147.2 million in Q2.

  • Depreciation and Amortization: USD41.8 million, slightly increased.

  • Net Interest Expenses: USD18.3 million improvement from previous quarter.

  • Earnings Per Share: $0.90.

  • Cash Position: USD144 million, stable compared to Q2.

  • Operating Cash Flow: USD118 million, up from USD108 million in Q2.

  • Free Cash Flow: USD160 million, strongest quarter ever for Odfjell.

  • Occupancy Rate (Terminals): 95% during Q3.

Release Date: November 06, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Odfjell SE (STU:O7F) delivered the second-best quarterly result in its history with a net result of USD71 million.

  • The company achieved a 7% increase in contract rates, marking the 14th consecutive quarter of rate increases.

  • Odfjell SE maintained a strong safety performance with no significant incidents reported during the quarter.

  • The company successfully took delivery of a new vessel on long-term time charter, expanding its fleet.

  • Odfjell Terminals maintained a high occupancy rate of 95% and stable financial performance.

Negative Points

  • Time-charter earnings decreased to USD212 million, down from USD215 million in the previous quarter.

  • Operating expenses increased by USD2.7 million, reaching USD53.7 million, due to the absence of positive one-offs from the previous quarter.

  • The spot market showed signs of weakening, impacting the company's earnings outlook for the fourth quarter.

  • The company's carbon intensity, AER, increased slightly to 7.2 due to seasonal effects.

  • Geopolitical tensions and macroeconomic uncertainties, particularly in China and Europe, pose risks to market stability.

Q & A Highlights

Q: Could you mention the exact elements you include in your cash break-even? Do you include ship depreciation? A: We include all running expenses in the Group, such as OpEx and G&A, as well as interest and installments, and running investments on the vessels. Depreciation is not included, but interest and installments are. Our goal is to keep cash break-even below timecharter earnings to ensure positive cash flow to our owners.

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