Odfjell: Weaker results when Texas froze over
Odfjell’s somewhat weaker than usual figures for 1Q21 came as no surprise. In addition to be a seasonally weak period, this quarter was also negatively impacted by extraordinary weather conditions. However, this was expected by us and our estimates were in line with the results. 2Q21 is guided to be stronger, while the long-term positive supply/demand balance expectations bear no changes, therefore, our Buy recommendation for the share is reiterated under little changes to estimates and NOK 40/sh Target Price.
Seasonal weaker quarter, but in line with our expectations
Nothing surprising came from Odfjell’s 1Q21 report yesterday. The winter was unusually cold in Florida but at least we know the impact is bearable “when Texas freezes over”. Seasonal weakness, weather conditions and a challenging CPP market were the main reasons for somewhat weaker than usual figures, however, the main metrics were in line with our expectations. P
Odfjell: Climate targets and sustainability a hot topic
Odfjell’s results will be announced next Thursday and we expect a somewhat weaker quarter following the company’s guidance on increased competition from swing tonnage. Still, the growth in rates is to follow with more significant improvement projected in 2H21 and onwards. Currently, sustainability should be the key word used in Odfjell’s headquarters with ambitious climate targets, sustainability-linked bond and Chief Sustainability Officer in place. Although little of this can be monetized, it still brings some reassuring mood to the table. We reiterate Buy for the stock under unchanged NOK 40/sh TP with hopes of improving chemical market rates already in 2H21.
Stolt-Nielsen: Little Changes To Estimates After The Seasonally Weakest Quarter
Stolt-Nielsen posted its 1Q21 report yesterday with December-February figures somewhat below our and consensus’ estimates, but nothing dramatic happened during the seasonally weaker quarter. Lower numbers reflect the severe winter weather in the northern hemisphere that had a negative impact for both the Tankers and the Terminals. Medium to long-term outlook remains optimistic with low chemical tanker orderbook, while 2Q21 will have USD 1m cost related to the disruptions in the Suez Canal. We made limited changes to our estimates and reiterate Buy recommendation for the stock under little lower NOK 155/sh Target Price (NOK 160/sh previously).
Belships: Quarter led by Lighthouse Navigation; outlook improved
While the main operating segment of Dry Cargo Ships provided results in line with our expectations, overall figures were boosted by a very volatile Lighthouse Navigation segment, which showed the highest EBITDA since acquisition. The shipping market has turned very bullish over the last two months and the outlook improved for both the 2021 and, seeing historically low supply level, the longer term. Thus, we are likely to keep our positive stance towards the stock.
Figures boosted by Lighthouse Navigation
Usually, we had very low EBITDA margins from Lighthouse Navigation and the revenues side was not to look at, but this time the margin was rather solid and EBITDA of USD 4.8m was the reason the overall results beat our expectations. Still, this segment is very volatile and the focus should remain on the Ship segment, which came in slightly lower than we predicted (5% lower both the revenues and the EBITDA), but at a s
Belships posts its 4Q20 report next Wednesday. Although there were signals for reducing Supramax/Ultramax rates towards the end of last year and weaker start of 2021 was anticipated, this did not materialize. Stable-to-improving rates made us increase our estimates somewhat, while the positive longer-term expectations remain. Thus, we reiterate Buy recommendation for the stock at .