Odfjell SE posted a 69% sequential rise in net income to $54 million for the second quarter of 2026, as spot earnings surged and fleet utilization improved. Adjusted net result reached $56 million, up from $26 million in the prior quarter, while earnings per share rose to $0.68 from $0.41.
The company’s time charter equivalent (TCE) earnings jumped 17% to $195 million, with TCE per day increasing to $29,486 from $27,232. EBITDA rose 37% to $111.3 million, and EBIT climbed 51% to $69 million. Return on equity annualized reached 22.4%, up from 11.1%, while return on capital employed rose to 14.5% from 9.2%.
Operational metrics reflected the improved market conditions. Commercial revenue days increased to 6,409 from 6,114, while off-hire days declined to 237 from 271. Operating expenses edged up to $54.6 million, but general and administrative expenses fell by $2.1 million to $18.2 million. The company’s ODFIX index rose 9.8% quarter-on-quarter, while the Clarksons Chemical Tanker Spot earnings index jumped 24.4%.
Route-specific rate increases highlighted the strength in spot markets. U.S. Gulf to Far East rates surged 65%, while U.S. Gulf to Northwest Europe and Southeast Asia to Northwest Europe rates climbed 23% and 27%, respectively. Vegetable oils and biofuels now account for 19% of total cargo volume, up from 12% in the prior quarter.
Odfjell’s balance sheet strengthened, with total assets rising to $2.23 billion and cash and cash equivalents increasing to $165 million. Total liquidity stood at $385 million, while nominal interest-bearing debt (excluding right-of-use assets) totaled $738 million. The company approved a dividend of $0.52 per share, representing an 8.7% yield based on the current stock price.
Chief Executive Harald Fotland cautioned that third-quarter results are expected to soften, aligning with a return closer to first-quarter levels. The company also highlighted ongoing fleet expansion, with four 40,000 dwt newbuildings scheduled for delivery between the first quarter of 2027 and the second quarter of 2029. Terminal operations contributed $10.7 million in EBITDA, with average commercial occupancy rising to 96%.
Odfjell’s fleet net growth is projected at 9.1% in 2026, followed by 4.8% in 2027, 2.8% in 2028, and a contraction of 0.9% in 2029. The company’s carbon intensity improved to 6.9, a 54% reduction from the 2008 IMO baseline of 15.0.
