This article first appeared on GuruFocus .
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Time Charter Earnings:USD195 million in Q2 2026, up from USD167 million in Q1 2026.
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Average Time Charter Earnings per Day:USD29,486, up from USD27,232 in the previous quarter.
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EBIT:USD69 million, compared to USD46 million in Q1 2026.
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Net Result:USD54 million in Q2 2026, compared to USD32 million in the previous quarter.
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Adjusted Net Result:USD56 million, compared to USD26 million in Q1 2026.
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EBITDA:USD111.3 million, up from USD81 million in Q1 2026.
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Earnings Per Share:USD0.68, compared to USD0.41 in the first quarter.
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Cash Break-Even:Declined to USD21,804 per day from USD22,984 in Q1 2026.
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Operating Cash Flow:USD80.6 million, up from USD49.7 million in the previous quarter.
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Terminals EBITDA:USD10.7 million, compared to USD10.6 million in the previous quarter.
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Dividend:Board approved a dividend of USD0.52 per share.
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Release Date: August 21, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Strong financial performance with net result of USD54 million, up from USD32 million in the previous quarter, and adjusted net result of USD56 million.
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Improved time charter earnings per day to USD29,486, up from USD27,232, driven by stronger spot markets.
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Successful navigation of geopolitical risks, with all four vessels trapped in the Middle East Gulf safely leaving the region.
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Fleet expansion and modernization through delivery of two newbuildings and agreement to purchase four super-segregators, enhancing future efficiency and capacity.
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Strong safety performance and improved carbon intensity (AER down to 6.9) despite operational challenges.
Negative Points
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Volumes declined by approximately 6% due to the Middle East Gulf situation, with no immediate sign of resolution.
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Expectation of lower underlying net result in the next quarter, closer to first quarter levels, due to softening spot rates.
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Increased geopolitical volatility across multiple regions (Middle East, Black Sea, Red Sea, Mediterranean, Somalia) creating operational uncertainties.
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Potential downside risks from vessel deliveries and diminishing inventories worldwide, which could pressure freight rates.
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Storage demand in the US and Asia is soft due to geopolitical headwinds, impacting terminal performance.
Q & A Highlights
Q: If Asia and the US were unable to compensate for lost Middle East Gulf volumes, why did freight rates spike and why are they still elevated? Do you expect rates to soften for the remainder of 2026? A: Harald Fotland (CEO) explained that while total chemical tanker volumes were down approximately 6%, the Middle East typically delivers 15% to 20% of global production. The shortfall is being compensated by increased volumes from other regions, which are transported over much longer distances. This has led to higher total tonne-mile production, which is the primary driver behind the elevated freight rates.
Q: How has your COA rate renewal evolved in 2026 so far, and how do you see your COA rates as a relative share of volumes going forward? A: Harald Fotland (CEO) stated that while he doesn't have exact figures, they are seeing moderate increases on contract renewals. The second quarter was not particularly active for renewals. The reduced contract share in recent quarters is mainly due to the absence of Middle East volumes, which are being replaced by spot volumes in other markets. He noted there is no immediate sign of resolution to the Middle East situation, so this trend may continue.
Q: Can you elaborate on the planned timing of when you will secure financing for the own newbuildings on order? A: Terje Iversen (CFO) said they began exploring alternatives shortly after placing the orders and are quite advanced in discussions. There is significant interest from lenders offering competitive financing. He expects to conclude financing for at least a couple of vessels this fall, potentially waiting on the later deliveries (2028-2029) to avoid commitment fees.
Q: As the Middle East Gulf remains shut, which markets do we have some sort of advantage in and can we pivot to? A: Harald Fotland (CEO) highlighted that Odfjell's global presence is a key advantage. The company can reposition vessels to other trades and products to maximize earnings. He cited the increase in vegoils and biofuels to 19% of total volumes as a prime example of this fleet utilization flexibility.
Q: The Panama Canal yesterday announced a cut in all daily transits effective in September. How do you view the potential implications for your segment? A: Harald Fotland (CEO) noted that chemical tankers are not a prioritized ship type for canal transits. However, he believes the Panama Canal is much better prepared this time, having taken earlier action on drafts. While there will be effects, he expects a more controlled development than in 2023-2024, with vessels likely rerouting around Africa.
Q: In your tankers report, you show an EBITDA of USD116.8 million, but after adding elements, this is in fact USD115.5 million. What is the difference? A: Terje Iversen (CFO) clarified that the difference is due to USD1.4 million in other operating income, which is included in the EBITDA figure but not specifically shown on the main P&L slide. He directed listeners to the detailed P&L and notes for further information.
Q: How do we see taking new vessels into a potentially somewhat softer market and a little bit around that development? A: Harald Fotland (CEO) expressed no concern, stating that all new vessels have been planned into the schedule and are making money from day one. He noted the company has buffers with existing vessels due for recycling or expiring charters, providing ample opportunity to balance the fleet as the 19 vessels on order are delivered.
Q: I read that sulfuric acid volumes are declining due to export bans. Given our large stainless steel fleet, would that have a big impact on us? A: Harald Fotland (CEO) acknowledged that acid volumes out of China have declined, but Odfjell's diversified product mix mitigates the impact. He stated that acid volumes have remained stable at around 8% to 10% of total volumes, even after the export ban from China.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
