Odfjell SE (Buy, TP: NOK180.00) - On course for a solid rebound
With chemical volumes up 8% MOM in March and accelerated unwinding of OPEC+ cuts, coupled with only 3% tanker deliveries in 2025e and a record-high average fleet age, we see healthy prospects. Hence, we believe Odfjell screens attractively on an 18% 2025–2026e dividend yield, trading at a 2.4x average 2025–2026e P/E (tanker peers: 4.7x). We reiterate our BUY, but have cut our target price to NOK180 (200).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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