Odfjell SE Q4 2015: Significant improvement in underlying performance in 2015 with USD 100 million in future annual savings achieved

Net result for 2015 of negative USD 36 mill, including negative effect from bunker derivatives of USD 64 mill, compared with net result of negative USD 75 mill in 2014. Full year EBITDA improved to USD 190 mill from USD 96 mill last year and operating expenses was reduced by USD 53 mill compared with 2014. Project Felix (cost-cutting and efficiency programme) successfully completed, ahead of target of more than USD 100 mill in annual savings.

Chemical Tankers EBITDA in the fourth quarter was USD 33 million compared with USD 46 million in the third quarter. EBITDA includes negative effects from bunker derivatives of USD 20.5 million. The negative development is also partly explained by fewer sailing days in the quarter and a softening market for clean petroleum products and commodity chemicals towards the end of the quarter. Odfjell chemical freight index (ODFIX) down 4.4% compared with previous quarter.

Our fuel efficiency initiatives continue to be implemented. Average fuel savings for converted ships is above 20%.

Odfjell's shareholding in the tank terminals business delivered an EBITDA of USD 11.4 million in the fourth quarter, up from USD 9.9 million in the previous quarter.

Despite a somewhat uncertain market outlook, we expect 2016 results for Chemical Tankers to improve based on a more competitive cost structure, and expiry of loss-making bunker hedges. We also expect Odfjell Terminals 2016 results to be improved on strong PID distillation activity and better storage results at Odfjell Terminals (Rotterdam) and stable result for the other terminals.

For more information:

Kristian Mørch, CEO Odfjell SE
Tel: + 47 55 27 00 00
E-mail: kristian.morch@odfjell.com

Terje Iversen, CFO/SVP Finance
Tel: + 47 55 27 00 00
E-mail: terje.iversen@odfjell.com