Odfjell: Solid performance continues despite tension<\/p>\n
Odfjell\u2019s 1Q26 results were weaker YoY and QoQ and somewhat below our and consensus estimates, still quite solid in the exceptionally fluid geopolitical environment. We have made minor adjustments to our figures, reflecting higher uncertainty and inefficiencies that aroused due to the closure of the Strait of Hormuz. Nonetheless, we reiterated our Hold recommendation at a lower TP of NOK 125\/sh. (NOK 130\/sh. previously).<\/p>\n
Somewhat weaker results compared to previous quarters<\/p>\n
TC earnings ended at USD 167m, in line YoY and QoQ. EBIT and bottom line came in at USD 46m and USD 32m, respectively, with both figures landing somewhat weaker YoY and QoQ and below our and consensus expectations. Total volumes came down to 3.2m mt from 3.4m mt in 4Q25. COA share of total volumes has been stable over the previous quarters, but fell from 57% to 45% in 1Q26, due to the closure of the Strait of Hormuz, as Middle East Gulf exports are predominantly contract cargoes. Yet, the reduction in contracts was somewhat compensated by higher spot volumes, peaking at an all-time high of 1.8m mt.<\/p>\n
We remain cautious, following the developments in Middle East<\/p>\n
The chemical tanker segment continues to face extreme volatility and shifting trade flows. Odfjell is well-positioned to capture these elevated spot rates in the short term, however the industry outlook diverges. Supply shortages are driving profits, but IMF growth downgrades and the ongoing conflict cloud the long-term outlook. The swing tonnage remains at minimum levels, supporting the chemical market. Overall, the company guides 2Q26 results to be higher than 1Q26, where terminals expect broadly in-line performance, but could be impacted if tensions in the Middle East are not resolved. Following this, we reiterate Hold recommendation at a lower TP of NOK 125\/sh. (NOK 130\/sh. previously), reflecting our cautious stance, underpinned by elevated uncertainty in short-term as volumes are likely to face downward pressure if Middle East Gulf closure persists.<\/p>\n
hellenicshippingnews…<\/p>\n