ODFJELL SE ANNUAL REPORT 2015

SHIPPING AND STORING OF

ANYTHING LIQUID

Odfjell SE (Odfjell or the Company) is a leading company in the global market for transportation and storage of chemicals and other specialty bulk liquids. Originally established in 1914, the Company pioneered the development of the chemical tanker trades in the mid 1950s and the tank storage business in the late 1960s. Odfjell owns and operates chemical tankers and LPG/Ethylene carriers in global and regional trades, as well as a joint venture network of tank terminals.

Odfjell’s business is an important contributor to industrial and social development around the world. Our core business is the transportation and storage of organic and inorganic bulk liquid chemicals, acids, animal fats, edible oils, potable alcohols, LPG/Ethylene and clean petroleum products. These important ingredients and raw materials for everyday life can be found in products like medicines, medical equipment, building materials, cosmetics, food, textiles, cars and plastics.

STRATEGY
Odfjell’s strategy is to be a leading logistics service provider with customers across the world, through the safe and efficient operation of deep-sea and regional chemical tankers and tank terminals worldwide.

ODFJELL TANKERS
Odfjell has unprecedented experience of deep-sea transportation of chemicals and other liquids. Our operations are fully integrated, with in-house functions for chartering, operation and ship management. Our major trade lanes cover the US, Europe, Asia, India, the Middle East and South America. At the end of 2015 Odfjell’s sophisticated fleet consisted of 74 ships, including owned, time-chartered and bareboat chartered vessels. The total capacity of the current fleet is around 2.2 million dwt. The chemical tanker business posted a gross revenue of USD 940 million in 2015.

ODFJELL GAS
In 2012 Odfjell re-entered the LPG/Ethylene market and established the company Odfjell Gas AS. The fleet currently consists of two LPG/Ethylene carriers of 9,000 cbm each. Our joint venture Odfjell Gas also has eight newbuildings on order consisting of four 17,000 cbm and four 22,000 cbm with delivery from 2016 and onwards.

ODFJELL TERMINALS
Our terminal operations yield synergies with our transportation activities and improve quality and efficiency across the entire transportation chain. The tank terminal business in general contributes stable revenues for the Company’s overall results. Our tank terminal operations also offer opportunities to develop new markets where the infrastructure for specialised bulk liquids is limited. Odfjell has investments in ten operational part-owned tank terminals in the Netherlands, Belgium, USA, Singapore, South Korea, Oman, China and Iran. In addition, Odfjell Nangang Terminals (Tianjin), China, is ready for operation, but the explosion in Tianjin harbour in 2015 is delaying the prosess of obtaining the necessary operational permits. Further projects are under development in Fujian and in Changxing Island, China. Our terminal business also cooperates with 13 terminals in South America and one in Canada. These tank terminals are partly owned by related parties. The terminal business generated a gross revenue of USD 112 million in 2015.

ASSETS / EQUITY PER YEAR*

*As from 2013 figures are presented based on equity method, for earlier years figures are based on proportionate method.

 

GROSS REVENUE / EBITDA PER YEAR*