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FINANCIAL PERFORMANCE
Gross Revenue of USD 1 476 million
EBITDA of USD 286 million
EBIT of USD 198 million
Retroactive tax income USD 33 million
Net result of USD 163 million
Cash flow of USD 272 million
MACRO VARIABLES
A global ‘Annus horribilis’ with extreme volatility in a wide range of markets, which is expected to continue in 2009.
Economic recession following a huge liquidity boom. A combination of falling product demand and “financial trade” obstacles, such as buyers not being able to obtain necessary letters of credit, led to a severe shift in the supply/demand balance in many shipping segments.
The Baltic Dry Index dropped dramatically by close to 95%, and VLCC earnings fell by 70%. The chemical parcel tank segment has also experienced lower volumes, but has declined much less than other segments.
Highly uncertain market outlook.
ASSET DEVELOPMENT
Purchase of M/T Bow Santos (19 997dwt/2004), previously on time-charter. Later sold with a five year bare-boat charter back.
Delivery of one 19 900 dwt and four 33 000 dwt stainless steel newbuildings on long-term time-charter from Japanese owners.
One 19 900 dwt delivered to our partner Ahrenkiel, included in our pool of similar ships.
100% take over of Flumar, including four ships previously 50% owned.
Agreement signed in China for a series of six 9 000 dwt stainless steel chemical tankers. One 8 200 dwt coated chemical tanker ordered to serve the domestic market in China. Delivery 2010 to 2012 for the first six vessels.
Cancellation of contract for twelve ships with Sevmash.
Sale of M/T Bow Condor (27 950 dwt/1978), M/T Bow Lancer
(35 100 dwt/1980), M/T Bow Maasstad
(38 039 dwt/1983) and Bow Bahia (5 870 dwt/1996), en-bloc together with Ahrenkiel’s Multitank Bolognia.
Sale of Bow Sky (40 005 dwt/2005), with an eleven year bare-boat charter back.
February 2009, Odfjell entered into an agreement to bare-boat charter from National Chemical Carriers three
37 000 dwt (Kværner ships) built ’95 and ’96 for 10 years with purchase option.
Time-charter three 23 000 dwt stainless steel tankers built ’82 and
‘88 for 3–6 years.
SHAREHOLDER ISSUES
The Odfjell A-share and B-share price fell respectively by 51.1% and 36.6% expressed in Norwegian kroner, and the year-end market capitalisation came to about 3.8 billion (USD 544 million).
During 2008 Odfjell sold 1 679 500 treasury A-shares at an average price of NOK 50 and 2 322 482 treasury
B-shares at an average price of NOK 40 to DnB NOR Markets. Furthermore, Odfjell SE entered into a Total Return Swap with DnB NOR Markets for all the sold shares.
A dividend of NOK 2.00 per share was paid in May 2008.
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