Brief: Odfjell Expects Q2 Results To Be Better Than Q1

Odfjell SE

09/06/2020 06:19

June 9 (Reuters) - Odfjell SE  ODF.OL :
    * HAS SO FAR BEEN LARGELY UNAFFECTED BY CHALLENGES CREATED
BY
COVID-19
    * BASED ON THE DEVELOPMENT SO FAR, WE EXPECT 2Q20 RESULTS TO
BE
BETTER THAN THE 1Q20 RESULTS
    * LONG TERM STRATEGY REMAINS INTACT BUT CO IS ADAPTING SHORT
TERM
PRIORITIES
    * TARGET TO LOWER OUR CASH BREAK-EVEN TO USD18,000 –
USD19,500 PER
DAY
    * AIMS TO ACCELERATE REFINANCING, INCREASE LIQUIDITY TO
ELIMINATE
BOND REFINANCING RISK AND  REDUCE CAPEX AND SPENDING
    * EXPECT TO REACH TARGETED CASH BREAK-EVEN BY 2022 SHOULD
CURRENT
EARNINGS ENVIRONMENT CONTINUE THROUGH 2020 AND 2021
    * FREE CASH FLOW SHOULD IMPROVE IN 2021 AFTER COMPLETION OF
NEWBUILDING DELIVERIES
    * DEMAND STILL LOOKS LIKELY TO CONTINUE SURPASSING NET FLEET
GROWTH IN THE YEARS TO COME
    * TONNE-MILE DEMAND FORECASTED TO GROW BETWEEN 2 TO 4
PERCENT ON
AVERAGE BETWEEN 2020 AND 2022
    * SEE LIMITED GROWTH IN NEW EXPORT ORIENTED CAPACITY IN 2021
AND
2022
    * SLOW RECOVERY POST COVID-19 TO RESULT IN LOW GROWTH (2%)
AND
2021 RECOVERY IN HIGH GROWTH (4%)

Source text for Eikon:  ID:nWkrxtSSr 
Further company coverage:  ODF.OL 

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