Norwegian chemical tanker operator Odfjell SE reported a 68.8% sequential increase in net profit to $54 million in the second quarter of 2026, driven by stronger spot freight rates despite ongoing geopolitical disruptions.
The company’s time charter earnings rose to $195 million from $167 million in Q1, while earnings per share climbed to $0.68 from $0.41. Return on equity surged to 22.4% from 11.1%, and EBITDA increased 37.4% to $111.3 million. Adjusted net profit totaled $56 million, compared with $26 million in the first quarter, which included a $6.9 million customer settlement.
Operational metrics reflected the improved market conditions. Commercial revenue days increased by 295 to 6,409, while off-hire days fell to 237 from 271. The company transported 3.2 million metric tons of cargo, unchanged from the prior quarter, with the share of vegetable oils and biofuels rising to 19% from 12% in Q1. The ODFIX index, which tracks Odfjell’s fleet performance, increased 9.8% quarter-on-quarter, while Clarksons’ chemical tanker spot earnings index jumped 24.4%.
Regional freight rates showed broad strength, particularly on routes between the U.S. Gulf and Asia, where earnings rose 65%. Earnings on the U.S. Gulf-Northwest Europe route increased 23%, while Northwest Europe-U.S. Gulf rates climbed 35%. Product tanker earnings rose 17% overall, though VLCC earnings declined 11%. The company noted that geopolitical disruptions in the Middle East Gulf and Strait of Hormuz had shaped operations, with all four Odfjell-operated vessels in the region safely exiting and no plans to transit the strait in the future.
On the balance sheet, total assets grew to $2.23 billion, while cash and cash equivalents rose to $165.3 million. Operating cash flow increased to $80.6 million, and free cash flow more than doubled to $61.1 million. The company approved a dividend of $0.52 per share based on adjusted first-half results.
Capital expenditures totaled $44.9 million, including $35 million for pre-delivery installments on four 40,000 dwt vessels ordered from Kitanihon shipyard. Scheduled debt repayments remain modest, with $19 million due in both Q3 and Q4 2026. The company also highlighted progress on terminal expansions, with the Antwerp Tankpit-S expansion set to become operational in Q1 2027 and the Ulsan, South Korea E5 expansion by Q4 2026.
