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Odfjell Publishes 2023 Results

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Picture of Anamika Talwaria

Anamika Talwaria

Editor & Head of Content for Tank Storage Magazine & StocExpo and Chair of Women in Tanks.

Odfjell has reported its results for 2023. Looking at both the shipping and storage terminals elements of the business, Odfjell has reported strong achievements in key operational areas throughout the year, from financial performance to fleet and terminal enhancements, with industry-leading safety records and solid progress in its decarbonisation journey.

CEO Harald Flatland highlights safety, decarbonisation and continuous improvement as key pillars across all business units. ‘Our 2023 financial performance is, to a large extent, market dependent. The positive market development that started in 2022 continued into 2023 despite geopolitical tensions, and in some cases because of them,’ says Harland. ‘2023 saw a significant strengthening of our contract portfolio. We operate one of the most energy efficient fleets within our segment. This is first and foremost good for the environment, but it is also proving beneficial to our customers as we contribute to improving their scope-3 reporting, thereby reducing their carbon taxes within the EU. Our strategy to capture the short term and de-risk the long term has proven efficient, and to this end, we have taken full advantage of the robust markets.’

Focusing on terminals, Harland says: ‘New tank pits have been commissioned at our terminals in USA and Belgium. Our terminal expansion projects are proceeding as planned, and we continue to realize the full potential of our existing assets by utilizing inherent funding capacity at the terminals. This enhances our financial capabilities and strengthens our presence in key markets.’


Financial success

In 2023, Odfjell generated a net result of $203 million (€188 million), its strongest financial year on record. The company has reported an EBITDA of $451 million (€416 million).

This year was the fifth consecutive year of positive CoA renewals, and Odfjell used the persisting strong markets to reset its contract portfolio to a significantly higher level than just two years ago. With a contract coverage of 50-60%, this improvement will also support earnings should the spot markets soften, although there are few signs of this in the near term.


Odfjell Terminals

2023 reflects a year of growth, resilience, and sustained focus on safety performance and operational excellence. The terminal platform grew normalised EBITDA by more than 20% compared to the previous year, and continued to improve on key safety metrics. Odfjell currently has four terminals with a storage capacity of 1.2 million m3.

Odfjell Terminals Houston (OTH) is on track with finalising the construction of a new 32,400 m3 tank pit, Bay 13. The expansion features six carbon steel and three stainless steel tanks and will be commissioned during the first quarter of 2024.

Odfjell Terminals US (OTUS) is making steady progress with its extensive multi-year Digital Transformation Program. This year, multiple operational workstreams have transitioned from paper to
digital platforms, improving safety, operator occupational health, operational efficiency, and customer service.

In July, Odfjell Terminals Korea (OTK) made history by enabling the green methanol bunkering
of the world’s first methanol engine container vessel, Laura Maersk. Green bunkering activity at OTK is set to continue in 2024. Consistent with our commitment to sustainability, we are expanding our scope of services to support the transition towards more energy-efficient vessels and greener marine fuels.

Noord Natie Odfjell Antwerp Terminal (NNOAT) commissioned a new 36,000 m3 duplex stainless
steel tank pit (Tankpit-U) in November, ahead of the projected timeline and below budget. As a
continuation of Odfjell’s large-scale expansion program in Antwerp, the final investment decision of a subsequent project (Tankpit-R) was taken before year-end, comprising 10 additional tanks and a new
loading bay.

During 2023, both OTK and NNOAT launched new digital Terminal Management Systems (TMS), enhancing operational efficiencies and management capabilities.


Safety & Sustainability

In 2023, Odfjell’s outstanding safety performance underscored its dedication to safety as a core value and integral part of its operations. Odfjell improved on all safety KPIs from 2022 to 2023. Odfjell Terminals was recognized for its safety excellence with awards such as the Korea Safety Award and the Global Tank Storage Awards’ 2023 Safety Excellence Award, highlighting the company’s industry-leading safety practices.

Read more: OTK Wins Safety Excellence

Odfjell has also achieved a landmark 5% reduction in carbon intensity across its controlled fleet, surpassing its 2030 target ahead of schedule with a total decrease of 52% against the 2008 IMO baseline. This accomplishment underscores Odfjell’s steadfast dedication to sustainability and marks a significant step towards carbon neutrality by 2050. All Odfjell’s ships received IMO CII ratings of between A and C, reflecting the fleet’s efficiency and lower environmental impact.

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