Odfjell maintains resilient earnings amid chemical tanker market volatility
Odfjell SE reported a solid financial performance for the third quarter of 2026 despite softer spot markets and continued disruption to global chemical shipping patterns. The Norwegian shipping company also expanded its fleet with three newbuilding deliveries, while maintaining its exposure to the chemical tanker market through further fleet commitments.
The company recorded time charter earnings of US$192 million during the quarter, compared with US$195 million in the second quarter of 2026. Average daily time charter equivalent (TCE) earnings declined to US$27,892 from US$29,486, reflecting weaker spot market conditions following the stronger rates recorded early in the previous quarter.
Operating profit (EBIT) reached US$59 million, compared with US$69 million in the preceding quarter, while group net profit amounted to US$40 million, down from US$54 million. Adjusted net profit was US$43 million, compared with US$56 million in the second quarter.
Despite the sequential decline, Odfjell continued to benefit from changes in cargo flows and vessel availability. According to the company, global seaborne chemical volumes remained below pre-conflict levels, although vegetable oil and biofuel shipments helped compensate for the reduction.
At the same time, stronger earnings in the medium-range tanker segment limited the availability of swing tonnage, supporting freight rates for specialised chemical carriers.
Fleet expansion and renewal
Odfjell took delivery of three newbuilding vessels during the third quarter, including one owned 26,000 dwt vessel and two vessels secured under long-term time charter arrangements. All three vessels were successfully deployed during the reporting period.
Following the end of the quarter, the company concluded the sale of two 15-year-old coated chemical tankers and committed to long-term contracts for two additional stainless steel supersegregator vessels.
The transactions form part of Odfjell’s ongoing fleet development activities, combining new vessel capacity with the disposal of older tonnage. The company did not disclose the financial terms of these post-quarter transactions in its results announcement.
Odfjell also maintained its reported fleet carbon intensity, with its Annual Efficiency Ratio (AER) remaining at 6.9, unchanged from the previous quarter. The company reported continued strong safety performance across its operations.
Meanwhile, Odfjell Terminals contributed US$2.2 million to the group’s net result, compared with US$1.8 million in the second quarter, providing a modest improvement in the terminals business.
Market outlook remains cautious
Harald Fotland, Chief Executive Officer of Odfjell, said the company had maintained strong earnings despite volatile conditions and disruptions affecting established trading patterns.
“I am pleased with our solid performance in a volatile market. We maintained strong time charter earnings while successfully deploying three additional vessels during the quarter,” said Harald Fotland, Chief Executive Officer of Odfjell.
The company expects market uncertainty to continue into the final quarter of the year. Although vegetable oil and biofuel volumes have supported chemical tanker demand, established trading patterns remain disrupted, and the recovery in chemical cargo volumes has yet to fully materialise.
Odfjell anticipates that its underlying net result for the fourth quarter of 2026 will be somewhat lower than in the third quarter, reflecting its cautious assessment of the near-term operating environment.
The latest results underline the company’s ability to remain profitable amid shifting chemical tanker market conditions, while continuing to renew its fleet and secure additional long-term vessel capacity.
