Earnings call transcript: Odfjell Q2 2025 sees modest earnings beat, stock dips

Odfjell SE reported its Q2 2025 earnings, showcasing a slight beat on earnings per share (EPS) with $0.51 against a forecast of $0.4811. The stock closed at $152.76, showing recent resilience with a 2.66% gain over the past week. According to InvestingPro analysis, Odfjell is currently trading near its Fair Value, with a "FAIR" overall financial health rating. The company’s revenue and operational performance remained strong, with notable advancements in product innovation and market positioning.

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Key Takeaways

• Odfjell achieved an EPS of $0.51, surpassing the forecast of $0.4811.
• Stock price fell by 0.99% post-earnings, closing at $121.2.
• Significant progress in product innovation with sail installations on Bow Olympus.
• Stable chemical transport demand anticipated despite geopolitical tensions.
• No new chemical tanker orders, maintaining a strong market position.

Company Performance

Odfjell demonstrated resilience in Q2 2025, with time charter earnings rising to $174 million from $168 million in Q1. The company maintained a robust market position, controlling 40% of the super segregator segment and 14% of the total chemical tanker order book. Despite geopolitical tensions affecting the summer season, Odfjell expanded its operations into bag oils and CPP cargoes, inaugurating a new tank in Antwerp and starting groundwork for expansion in Korea.

Financial Highlights

• Revenue: $174 million in time charter earnings, up from $168 million in Q1.
• Earnings per share: $0.51, exceeding the forecast of $0.4811.
• EBIT: SEK 59 million, up from SEK 54 million.
• Net result: SEK 40 million (adjusted SEK 42 million).
• Total available liquidity: $305 million.

Earnings vs. Forecast

Odfjell’s EPS of $0.51 surpassed the forecasted $0.4811, marking a positive surprise for investors. The earnings beat represents a 6% increase over expectations, reflecting the company’s ability to perform in a challenging market environment. This beat aligns with Odfjell’s historical trend of meeting or slightly exceeding earnings forecasts.

Market Reaction

Despite the positive earnings surprise, Odfjell’s stock price fell by 0.99% to $121.2. This decline may be attributed to broader market trends or investor caution amid geopolitical tensions. The stock remains within its 52-week range, with a high of 169.4 and a low of 70.1.

Outlook & Guidance

Looking ahead, Odfjell expects Q3 results to align with or slightly fall below Q2 levels. The company anticipates stable chemical transport demand, with potential upside from increased oil production. Future projections include EPS growth to $1.11 in Q4 2025 and $1.23 in Q1 2026. With a beta of 1.25, investors should note the stock’s higher volatility compared to the market. The next earnings announcement is scheduled for October 22, 2025.

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Executive Commentary

CEO Harald emphasized the company’s robust performance, stating, "We managed to increase our earnings and our results in a declining market." He also highlighted Odfjell’s commitment to sustainability, noting, "We are now reporting an AER... below 7%." Harald underscored the essential role of chemicals in various processes, reinforcing Odfjell’s market relevance.

Risks and Challenges

• Geopolitical tensions could impact shipping rates and demand.
• Fluctuating oil prices may affect profitability.
• Potential supply chain disruptions could hinder operational efficiency.
• Market saturation in the chemical transport sector poses a long-term risk.
• Currency fluctuations may impact financial results, given Odfjell’s international operations.

Q&A

During the Q&A session, analysts inquired about Odfjell’s order book calculation methodology and engagement in the CPP market. Executives also addressed potential geopolitical impacts on market conditions, providing insights into the company’s strategic positioning and risk management approaches.

Full transcript - Odfjell SE (ODF) Q2 2025:

Harald, CEO/Primary Presenter, Odfjell: Okay. Good morning to all of you, and good morning also to those who follow us live. This presentation is given at Western Norway at the Stock Exchange Seminar here close to Bergen Airport. And I also want to remind those following us online that it’s possible to type in questions during the presentation and we will address them afterwards. Today’s agenda is the same as always.

I will go through the highlights and then my colleague, Thay Wassen, he will take you through the financial results. And then I will conclude this presentation with an operational review and a market update and prospects going forward. And if we then turn to the highlights, I’m first and foremost extremely satisfied to see that we have completed another quarter without any significant incidents in our fleet. And we also, in my opinion, delivered very resilient results in a challenging market. First and foremost, because of the political turmoil that we all observed and then also due to the unresolved trade negotiations that are still ongoing.

I will come back to that later. On top of that, the summer season is normally a more quiet season for chemical tankers. So despite all those negative factors, we still managed to deliver a $6,000,000 increase in our time charter earnings. And in the second quarter, we earned $174,000,000 and this compares to $168,000,000 in the first quarter. Our time charter earnings per day was $30,306 and this is up from $29,556 in the previous quarter.

We also saw an increase in our EBIT, SEK 59,000,000 compares to SEK 54,000,000 in the previous quarter. And bottom line, we delivered net results of SEK 40,000,000 and adjusted for one offs, it’s SEK 42,000,000 and this compares to $33,000,000 in the first quarter. We also saw a net contribution from our terminal division of $1,900,000 and this compares to 2,900,000.0 in the previous quarter, and the reduction is in full due to one offs on corporate level for the terminal side. I’m also extremely pleased to report another reduction in our carbon intensity. This is the first time that Odfjell is reporting an AER, annual efficiency ratio, below seven.

We are now at 6.8. And then I also have to add that the summer season is normally the best quarter when we are measuring carbon intensity simply because we see much more calm weather during the summer months. And finally, the Board also approved a dividend of SEK $0.04 8 per share, and this is in line with our established policy of half yearly distributions of net result adjusted for one off items. And that concludes my quick introduction and then I give the word to Thijer.

Thay Wassen, CFO/Financial Presenter, Odfjell: Thank you, Harald, and good morning to all of you. I will as usual start with income statement for this quarter. As Harald also mentioned, time charter earnings this quarter ended at $174,000,000.7000000 dollars up compared to the first quarter. Main reason for the increase in the time charter was that we had increased volumes and we also had more commercial days in the second quarter compared to the first quarter. Commercial revenue days increased by 77 and we also added two time charter vessels on short term time charter this quarter.

Offer increased from three eighty to four twenty three mainly due to increased docking activity in the quarter. And also we had one short term time charter vessel being out of operations because it was involved in coalition at the start of the quarter. Time charter expenses ended at 4,100,000 quite comparable to the preceding quarter. Also operating expenses, 52.9 very much in line with the previous quarters, where we saw that G and A slightly down compared to second quarter and then at 20.6%, a bit lower than or higher than normal this quarter because we have the effect from holiday payments, normally reducing the G and A in the second quarter, but we also had increased legal fees in this quarter, so we ended very much in line with the previous quarter in total. After G and A, we then delivered an EBITDA of $98,400,000 compared to 93,100,000.0 in the second quarter.

Depreciation and amortization, very much same level as previous quarter, leading to an EBIT of 58,600,000.0 compared to $54,400,000 Net interest expenses decreased from 19,100,000.0 to 16,400,000.0 Part of the reason is that we also expensed amortized financing cost in the second quarter of 2,100,000.0 So the decrease is not as large as it appears like. But even though we are seeing that net interest expenses is coming down because we are reducing our debt and also slightly lower so far this quarter and also better priced financing in total for our balance sheet. After other financial items being capital loss this quarter, we ended on with a net result of $40,100,000 up from $34,400,000 in the second quarter, leading to earnings per share of $0.51 this quarter. Looking at the time charter compared to our cash breakeven that we measure each quarter, we saw that time charter earnings and that day ended at $13,306 dollars in the second quarter, up from $29,556 in previous quarter. Cash breakeven per day was $23,791 slightly improved since first quarter, bringing in twelve months rolling average to $23,578 well below the time charter earnings that we are getting on our vessels.

And as you can see, we have been very much cash positive since the ’1 when it comes to comparing time charter earnings per day with the cash breakeven for our vessels. Going forward, we expect cash breakeven to remain at these levels and the same goes with the P and L breakeven going forward. Looking at the balance sheet, main items here is that we took delivery of two vessels, both Precision and both Performa, both vessels that we had on operational or time charter lease before we acquired them according to purchase options that we had in the agreements. So ships in newbuilding contracts increased to $1,300,000,000 in this quarter, where we see that right of use assets decreased because these were included as right of use assets with the time charter agreements and the bareboat agreements that we had before we exercised the options. Cash and cash equivalents increased to 131,000,000 or if you include undrawn loan facilities, we are at total available liquidity of US305 million dollars and that includes the effect from the bond loan that we issued in May of US100 billion dollars but we used all that proceeds to repay our revolving credit facilities.

We are not increasing the cash at hand and we are not increasing the debt, but we are increasing available liquidity in case we should need that for various purposes. Also we see that current receivables was reduced this quarter, reducing our working capital and increasing our operational cash flow. And total equity increased with US49 million dollars compared to total comprehensive income for this quarter and we have now equity percentage around 46% at the total for the group. We also see that non current interest bearing debt decreased, main reason being that we are reducing our debt as mentioned, but also that to loan loss reclassified because they’re maturing first half next year and now included as current portion of interest bearing debt per end of first half. Looking at the cash flow, as I said, we improved the working capital quite substantially this quarter, leading to operating cash flow this quarter of million dollars increase of $49,000,000 compared to first quarter.

The main reason being of course we had improved results, but mostly due to the improvement in our working capital. And actually I think this 109,000,000 is the second best quarter when it comes to operational cash flow in the history, so we’re very satisfied with the cash flow we saw this quarter. On the investment side, we acquired Bo Performa in April. So looking at cash flow from investment activities, that was negative $54.6 And on the debt side, we did repay loan amounts on the revolving credit facilities and we took this new bond loan. So in total, we had negative cash flow from financing of US10 million dollars this quarter.

In total, we then had an improvement in cash and cash equivalents of $44,700,000 in the second quarter. Looking at the more long term free cash flow generation from our business. As I said, we had strong operating cash flow in this quarter due to the improvement in working capital and improved results. But we have also included cash flow from investments this quarter, which was done the acquisition of both pro form a and Proposition. Proposition actually was refinanced in the first quarter when we acquired we exercised the purchase option, so we drew a new loan for that vessel in the second quarter, but the actual delivery took place only first April, so that is included here in the second quarter as investments.

So free cash flow this quarter was based on operating cash flow of $109,000,000 minus investments of $98,000,000 ending at 12 But however, looking at the more long term, we see that twelve months rolling free cash flow is now at around $60,000,000 and we adjust that for repayments related to right of use assets. We are at $49,000,000 on a twelve months rolling basis this quarter. On the debt side, I mentioned that we issued a new bond. Per end of second quarter, we have debt of $742,000,000 interest bearing debt, no significant changes expected for the remainder of the year. And as you can see on the bottom of this slide, we are expecting a slight decrease in the interest bearing debt in the coming two years.

In June, we issued or I think it was in May actually, we issued this new bond of billion swapped that to US97 dollars and that was issued at the price of a margin of two seventy five basis points above NIBOR, which is the lowest price shipping bond since 2014. So we’re very satisfied with timing and the pricing that we achieved on that issue. And as I said, we only used the proceeds to repay loan amounts on our revolving credit facility, not increasing the debt on our balance sheet and total all in cost related to that is 2.5% per year to have that facility or cash available in case we should need that for investments or other purposes. Also during the second quarter, we added one vessel to the million dollars bank facility that we managed to have in place in the first quarter and also in July after the quarter, we have completed the purchase of one additional vessel that we had done operational lease for Germany, which also then has been included in the same loan facility. Going forward, looking at CapEx and time charter commitments, CapEx being newbuildings and also the clear purchase option stands now at 158 in the coming years.

That includes two vessels that we this one Boggemany that we acquired already in July and we also exercised purchase option for Boggemene, which we will take delivery of in first quarter twenty six. So that’s summarized to US71 million dollars and I have to add that these purchase option are very favorable comparing to the market values That goes also both by form a and both position that we have taken delivery of in the past few months. And then we have two newbuildings that are being delivered in 2026 and 2027 and in total then US158 million dollars in CapEx commitments. Looking at the time charter commitments, no news in this. We have around US1.1 billion dollars in terms of commitments for vessels to be delivered in the coming years from ’26 to ’28.

These are 18 vessels that are on long term term charters, eighteen years, eight years per vessel that we are taking commitments to. And the total commitments are, as I said, 1,100,000,000.0, but when these are added to the balance sheet, that will be a smaller amount because we are then excluding the OpEx element of these commitments. And also it could be that other time charters that we have on vessels that we have on time charters today will be re delivered and the total amount of the debt will maybe not increase with this amount. And these vessels together with our newbuildings account for 14% of the order book within our core segments. I can also add that five of these vessels that we have on time charters that are going to be delivered have a fixed time charter element and also variable time charter elements depending on the earnings of these vessels.

So what is included there is the guaranteed and fixed element of these time charter agreements. I think that leaves I leave the floor to you again, Harald. Thank you.

Harald, CEO/Primary Presenter, Odfjell: So by that, I will continue with an operational review. And I start with our contract coverage. On the left hand side of this slide, you will see that we had a slight reduction in our contract coverage, meaning that 51 of the cargo that we carried was contract cargo, while the remaining 49% were spot cargoes. If you, at the same time, look at the graph to the right, you will see that we had a quite substantial increase in volumes during the quarter. We are back to 24 levels of 3.4, And that means that we haven’t seen a dramatic reduction in contract volumes, but what we’ve seen is an increase in spot cargoes.

And for that reason, we have seen a reduction in the percentage. But there is no dramacy in those figures. Actually, it’s I would once again say that I’m impressed by our team and the fact that they’ve managed to increase the total volumes in what we could characterize as a difficult quarter. And that is also reflected in the graph to the left where we see that we saw an increase in average earnings of 1.2% within the Odfjell fleet and at the same time, we saw a decrease of 3.8% in the so called Clarksons spot index. If we look at the various cargo types that we are carrying, we saw a slight decrease when it comes to specialty chemicals.

We saw relatively stable volumes on the commodity chemicals, and those are the chemicals that are typically transported in large volumes. We also saw a slight growth in veg oils. Those are cargoes that we normally do not carry because the freight rates are lower than what you see for commodity chemicals and specialty chemicals. And the same goes for clean CPP cargoes where we also saw an increase in Odfjell volumes. That is also outside our core business.

But as a consequence of reduced specialty chemicals, we focused on bag oils and CPP and by that, we managed to increase our earnings and also our results and volumes. Then turning to sustainability. As mentioned, we are this quarter reporting an AER, the annual efficiency ratio, which is the average carbon intensity figure for our fleet of 6.8%, and that is a new record low for Odfjell. It’s the first time that we are reporting this figure below 7%. There are many reasons for that.

One reason is the continuous work that we do to retrofit energy efficiency devices. The sales are also starting to take effect. We installed the first set of sales on Bow Olympus during the first quarter. The immediate results were extremely encouraging. We saw savings up to 40%.

And on the first voyage, we saw average savings of 20%. And since then, we have had forty eight sailing days, and we all know how the European summer has been. It’s been calm and sunny weather. So we have had limited utilization of those sales. But still, we are at the average expected for this type of sales, which is a bit which is between 810%.

We are now preparing the vessel for she is right now in Houston and she is preparing for Transpacific voyage. That is more or less one month in Open Sea in September. So we are both excited and curious about the results that we will experience during that particular voyage. And that is more or less a one month voyage before she is reaching Yokohama. And on top of that, we have already despite that we don’t have a full picture of how those sales are actually working, we have already decided to install sales on two more vessels, two of the new buildings that are presently being constructed in Japan and those vessels will be delivered one in 2026 and one in 2027.

Then on the terminal side, we have relatively stable throughput on all our terminals. We have seen a slight decline in Korea, but then that is compensated for in The U. S. And Europe. We did see stable results.

The challenge is that the figure is being impacted by one offs at the corporate or holding level. We also are extremely happy to see that all the expansion projects that we’ve conducted on basically all our terminals is now starting to pay off. So we are receiving dividends from Korea, from North Nazi in Antwerp and also quite substantial dividend from our terminal in Houston. This is stable business. So the outlook for this segment is that we will have stable and similar performance also in the quarter that is coming.

When it comes to expansion projects, which is maybe the most cost efficient that you can do on the terminal side to continue to build on the established infrastructure. We did inaugurate one tank bit in Antwerp this quarter and we are now building another 12,000 cubic meters of stainless steel tanks. Those will be integrated later this year. And I’m also happy to see that finally we get some traction in Korea. We are building out the so called E5 area.

We have started with the groundwork and the first 10 tanks will be in operation late next year. And due to the expansion, we are also improving our berth capacity and we also decided therefore to upgrade one of the two berths that we have in Korea. So I would say that we have stable and good development on the terminal side. And then to the market update and prospects. This graph reflects what I’ve already said.

Normally, summer season is a slow season. People are on vacations. Many of reducing the activity, so the need for the chemicals that we are transporting is seeing a dip during the summer months. This trend has been reinforced this year, partly because of all geopolitical turmoil that we are all observing and partly because too many of the trade agreements or tariff agreements between The U. S.

And other countries are still unresolved. And for that reason, we have seen slightly higher reduction in the spot rates than what we have seen previous years. We are not concerned about this. We think there are logical explanations to it. And then if we go to the next slide and look at the tariffs, I think what strikes your mind when you see the list of tariffs is that what’s outstanding today is basically the BRICS countries.

It’s Brazil, it’s Russia, it’s China, it’s India and it’s South Africa. And maybe it’s more politics into that than real financial issues. What we see is that those agreements that have been concluded are concluded at levels where our customers seem to feel that they are coping with that. The American chemical industry council, they estimate that the growth will be slower than they have estimated previously, but we don’t observe that there is any panic going on and there is still a significant surplus in the balance between chemical imports and exports into The U. S.

Odfjell has approximately 20% of that market. So the expectation for the production in U. S, which is basically the Texas area, is that we will see a modest increase this year, a modest increase next year and then it will be back to normal levels. And then to the swing tonnage. Swing tonnage, those are vessels that are being built so that they can carry both easy chemicals and what they are normally doing, the CPP or petroleum products.

That is an important figure for us because it’s a disadvantage if those vessels are starting to swing into doing chemicals instead of gasoline and diesel. We have seen during the past few quarters, we have seen an increase of swing tonnage swinging into chemicals. But now if you look at the graph to the left, you will see that there has been an upswing in MR rates. And I think that will convince and encourage MR owners to swing back into where they belong on the CPP side. So we are not concerned about the influx of swing tonnage going forward.

If we look at the order book, the most positive news this quarter is that there were absolutely zero new orders for chemical tankers in our segments this quarter and the order book is exactly the same as we reported after the first quarter. And if we start with the super segregators, which is basically the bread and butter for companies like Odfjell, We control 40% of that segment. That is a segment where we will see a slight increase in capacity and that increase is relatively modest. If we then go to the next segment, which is what we call large stainless steel tankers, that segment is those tankers are more or less the same size as the super segregators. The big difference is that they have much fewer tanks.

33,000 tonner can inside the large stainless steel segment typically have maybe twenty, twenty four tanks, while the super segregators are between forty and fifty tanks. So in the large stainless steel segment, we will see a decrease going forward. That segment is getting smaller and smaller every year. So if you combine the supersegregators and the large segment and in total those two segments together, we’ll see a slight decrease in capacity. And that means that where we really see a huge increase is on the medium stainless steel segments.

The medium stainless steel segment used to be dominated by what they call the J19s, the typical 19 or 20,000 tonners being built in Japan. Those vessels those ships are there are approximately three fifty of them in total. Those vessels are slowly being phased out and they are being replaced by the more modern J25s, which have much more loading capacity, of course, but they have the same draft and the same crew, so meaning that they are maybe 25% more efficient than the old J19s. So the increase is coming as a consequence of J19s being replaced by J25s. And right now, the order book is in total approximately 20% of the sailing fleet and Odfjell has 14% of that order book, which means that we will see a slight growth in our capacity in the years to come.

And then this is my last slide, just to second last slide, just to summarize what I’ve said. We do see that slowly more and more of those bilateral trade or tariff agreements are falling into place. We have seen that IMF has made a small upgrade on GDP production and the transportation of liquid chemicals and the world GDP is extremely closely connected together. It’s not possible to imagine one single industrialized process where the chemicals that we are transporting is not involved. Every process that you can think of, whether it’s car industry, agriculture, medicine, food, they all need the chemicals that we are transporting.

And for that reason, this GDP figure is extremely important for our segment. On the geopolitical side, we continue to see challenges. I think the world has more adapted to sailing around Suez and the Red Sea. We expect to continue to do that for the foreseeable future. We are concerned about sailing into the Arabian Gulf through the threat of Hormuz.

But now it seems that, that situation has come under control and we are today sailing as normal in, out and out of the Arabian Gulf. We do expect that the chemicals production and the need for transport will be more or less stable this year and also next year. And there is kind of a possibility for an upswing due to the increased production of oil and increased refinery capacity in China. Swing tonnage, I’ve already mentioned. We expect that those vessels to either be stable or slightly decrease.

And by that, we foresee a stable outlook for the trade. We see a slight uptick on the GDP. We see that tariffs are slowly coming in for landing. We don’t see any hiccups when it comes to the newbuildings and we also feel that we have a good overview of the swing tonnage. So to conclude this presentation, then we did deliver a result that we have every reason to be proud of.

We managed to increase our earnings and our results in a declining market. We saw a slight increase in volumes. This is basically due to the fact that we swung into CPP and bag oils. And we did not renew any significant contracts during the quarter, and those contracts that were renewed were renewed more or less at the expiring terms. On the terminal side, we had stable results in the second quarter.

This is in line with previous quarter. And as mentioned, we did have some one offs at corporate level that reduced our net results. The outlook, we have seen some reduced activity in line with the slower summer season. We do think that increased production of oil will have a positive effect. And we do, as mentioned, expect the swing tonnage to at least not increase.

So based on that, we expect the third quarter to be in line with or maybe slightly below the second quarter results. That, ladies and gentlemen, concludes our presentation and we are open for questions. Have you received anything, Nils?

Nils, Moderator, Odfjell: We could just start out just to sort things out. We’ll start off with questions from the audience here and then we’ll continue with questions from the webcast. And we’ll bring a microphone. So please. Anyone?

Van den Eels, if you have questions from the webcast.

Van den Eels, Webcast Question Facilitator: I have a couple of questions, yes. I’m just going to read this question. It’s from Sam Eliotson. You noted an order book of 20%. Similar companies in the industry tend to report a figure below that.

How does Odfjell estimate the figure? I guess the question is sort of how we define the current fleet and the existing order book in our core segment.

Harald, CEO/Primary Presenter, Odfjell: It’s actually a good question. We are calculating deadweight versus deadweight, and that’s how we calculate the figures. But it’s an interesting question because the question is how is the right now, how is the compliant fleet, the fleet that we are actually competing with, how is that fleet developing? And what we’ve seen lately, example, when it comes to the J19s that I mentioned, there are almost three fifty of them is that many of those vessels are being sold for regional trades in the Far East. So they are still alive.

They are still being counted, but they are no longer competing with the international fleet. So I think this guy has a point that these figures are not absolute. But our figures are relatively they are relative to each other every quarter. So I think when you are looking at the figures that we are reporting, you have to compare them to what Odfjell has been reporting in previous quarters and not necessarily with what other companies or other analysts are reporting because they might have a different way to calculate the volumes. And also, it’s different what they actually included as a core chemical tanker.

We have very specific definitions of what’s being included and what’s not being included.

Van den Eels, Webcast Question Facilitator: Thank you, Harald. The next one is from and he’s asking what is the implied daily TCE for the current COA contracts? I’m not sure that’s something we comment on specifically. A general answer could be given.

Harald, CEO/Primary Presenter, Odfjell: There, I have to disappoint our viewer. That’s not the figure that we are commenting on.

Van den Eels, Webcast Question Facilitator: The next one is, again from Sam Eliotson. You said you engaged more in CPP. Was it mostly in The Middle East to Asia trade or somewhere else?

Harald, CEO/Primary Presenter, Odfjell: No, that was as you might have understood, the trades in and out of The U. S. Are those being by far most affected by the turmoil that we are observing due to the tariff discussions. And for that reason, we have utilized the local CPP market in and out of The U. S.

To kind of occupy our vessels while we are waiting to fill up our ships.

Van den Eels, Webcast Question Facilitator: Thank you. And then there is another question here from Joss Verbarkmoss. Will swing tonnage grow if geopolitical issues are going to be solved? He’s asking about the product tankers market, I guess, Yes. And geopolitical

Harald, CEO/Primary Presenter, Odfjell: do I start? I think

Thay Wassen, CFO/Financial Presenter, Odfjell: if

Harald, CEO/Primary Presenter, Odfjell: there is a peace treaty between Russia and Ukraine, that will have an impact on the regional trades in Europe. That I think will be positive for regional trades. And then it is a question what happens to the shadow fleet. The shadow fleet today accounts for some people say it’s 25% of the total tanker fleet is being defined as part of the shadow fleet. If those vessels are being allowed and that is ridiculously inefficient way of running shipping to service only three countries in the world, Venezuela, Iran and Russia.

So if those vessels are being allowed to simply swing back into the compliant fleet, then that might have a negative effect. So I don’t have any good answer to that question. There are factors going in all directions there.

Van den Eels, Webcast Question Facilitator: No, absolutely. Thank you, Harald. Think that was actually the final question from the webcast audience. So if there’s any more in the audience here.

Harald, CEO/Primary Presenter, Odfjell: Okay. Thank you very much for your attention and for showing

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