Odfjell is not expecting the upcoming glut of dry-dockings to spill over into the new year.
The Oslo-listed chemical tanker owner said it expects its fourth-quarter earnings to largely be in line with what was seen in the third quarter, in part because there will be fewer available commercial days in the last three months of 2023.
But chief executive Harald Fotland said on the earnings call that the chances of dry-docking delays are minimal.
“We have a very dedicated dry-docking team and we have better processes for organizing and carrying out dry docks than we have ever had before at Odfjell,” he said. “That probability is low.”
In the third quarter, the company reported 6,370 commercial days for its fleet of 70 vessels. That was the most this year and the most since the third quarter last year, when it reported 7,057 commercial days. Then, the fleet had two more ships.
For the three months ending on 30 September 2023, Odfjell recorded a $51.9m profit, up 3% year over year.
On the call, Fotland said rates dipped in the first half of the third quarter, before rallying in the back half.
He said most key indicators were moving sideways into the fourth quarter, with supply fundamentals looking slightly better as more ageing chemical tankers are tapped to leave the fleet.
The fleet earned time charter equivalent rates of $30,035 per day against a quarterly breakeven rate of $22,807 per day.
“We anticipate that the current market will continue,” he said on the call.
“The fourth quarter is a seasonally strong quarter. We expect activity levels and freight rates to remain at the present levels.”
Despite analysts describing the results as “solid” and “sound”, investors did not appear happy.
Odfjell’s class A voting shares lost NOK 9.50 ($0.85) from the previous close to NOK 110.50 in late trading.
Its class B shares, which enjoy fewer voting rights, fell NOK 8.50 to NOK 107.50.
