Odfjell SE (Buy, TP: NOK153.00) - Positive rate momentum
Despite softer QOQ expectations for Odfjell Tankers in Q1 on weaker 2023 spot rates at the start of the year, we believe recent renewed momentum for MR and chemical rates should support upcoming COA rate renewals as the company still has ample volumes waiting to be signed. Hence, we continue to see further earnings potential for Odfjell, reflected in our 2023e EBITDA of USD497m (up 30% YOY). We reiterate our BUY and have raised our target price to NOK153 (138).Odfjell is engaged in the global market for transportation and storage of chemicals and other specialty bulk liquids, LPG/Ethylene products as well as a provider of related logistical services. Co.'s principal 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. Co. has three reportable business segments: Chemical Tankers, which involve the servicing ports around the world; Tank Terminals, which engaged in cargo-consolidation programme in combined shipping and storage services; and LPG/ Ethylene, which Co. owns two carriers, Bow Guardian and Bow Gallant.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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