Third quarter presentation 2019

November 6, 2019

AgendaHighlights

Financials

Operational review/Strategy

Prospects and Market update

Highlights

“Third quarter was impacted by the usual seasonal slowdown in volumes while ratesremained stable. Since then, the market has normalized and we are encouraged to see theimprovement in volumes, and the improved crude and product tanker markets, whichshould positively impact our markets going forward. We are further encouraged byongoing improvement in contract rates and that customers are accepting pass-through ofpotentially higher bunker costs related to IMO 2020. We expect to report improved resultsin the fourth quarter"

Kristian Mørch, CEO Odfjell SE

3

1. Proportional consolidation method

Key figures, USD mill(USD mill, unaudited) 4Q18 1Q19 2Q19 3Q19 3Q18 FY18 FY17

Odfjell Tankers 221.3 218.3 223.1 214.2 208.8 850.8 842.5Odfjell Terminals 17.2 17.6 17.9 16.4 22.6 91.0 110.8Revenues* 241.1 238.3 243.2 232.7 233.7 950.5 961.7Odfjell Tankers 27.0 39.7 49.9 44.7 26.8 108.7 125.0Odfjell Terminals 4.8 6.7 6.2 6.0 3.9 24.0 38.4EBITDA* 32.7 47.2 56.8 51.4 31.5 135.3 165.8EBIT (13.0) 7.0 14.4 25.9 (13.5 (76.4) 132.8Net profit (47.6) (15.4) (10.1) (1.1) (31.2 (210.8) 90.6EPS** (0.60) (0.20) (0.13) (0.01) (0.40 (2.68) 1.15ROE*** (17.6)% (10.5 %) (6.1 %) (7.6 %) (13.8 %) (29.8%) 11.8%ROCE*** (1.1)% 1.4 % 2.8 % 2.7 % (1.5%) (8.1%) 8.8%1) Historical figures are not adjusted for IFRS16*Includes figures from Odfjell Gas** Based on 78.7 million outstanding shares*** Ratios are annualised

Highlights

The chemical tanker earnings were seasonally weaker this quarter. Volumes were lower, but freight rates remained stable and with a firmer underlying trend

EBITDA of USD 51 mill, compared with USD 57 mill in 2Q19

EBITDA of USD 45 mill from Odfjell Tankers compared with USD 50 mill 2Q19

EBITDA of USD 6 mill from Odfjell Terminals compared to USD 6 mill 2Q19

Net result of USD -1 mill compared to USD -10 mill last quarter. Adjusted for sales gain, net results were USD -15mill in 3Q19

Spot rates on main tradelanes increased by 2% compared to 2Q19, and our COA rate renewals are up 6.1% YTD 2019

Repaid our Sep-19 bond without any new issue. Secured new attractive financing which reduces our break-even levels

Concluded the sale of our Jiangyin terminal generating USD 21 mill in cash proceeds and an equity gain of USD 14 mill

Took delivery of Bow Orion, the world’s largest and most energy efficient stainless steel chemical tanker

AgendaHighlights

Financials

Operational review/Strategy

Prospects and Market update

Key quarterly deviations:

Timecharter earnings reduced due to lower volumes carriedduring the quarter

Costs were stable leading to volume impact directly filteringdown to reduced EBITDA for the quarter

G&A reduced in Odfjell Terminals following new corporatestructure with shutdown of offices in Rotterdam and Singapore. Odfjell Terminals now controlled with a leaner organisation from headquarter in Bergen

Taxes in Odfjell Terminals increased related to sale of JiangyinTerminal

Adjusted for non-recurring items, adjusted EPS for Odfjell was USD -0.17 compared to adjusted EPS of USD -0.10 in the previousquarter

USD mill Tankers Terminals Total*2Q19 3Q19 2Q19 3Q19 2Q19 3Q19

Gross revenue 223.1 214.2 17.9 16.4 243.2 232.7Voyage expenses (88.4) (88.2) — — (89.3) (89.1)Pool distribution (16.0) (13.0) — — (16.0) (13.0)Timecharter Earnings 118.7 113.0 17.9 16.4 137.9 130.6TC expenses (10.7) (10.5) — — (10.7) (10.7)

Operating expenses (37.1) (36.3) (6.9) (6.8) (44.5) (43.7)Operating expenses – IFRS 16 adjusted (5.6) (5.6) — — (5.6) (5.6)G&A (15.4) (15.8) (4.8) (3.5) (20.2) (19.4)EBITDA 49.9 44.7 6.2 6.0 56.8 51.4Depreciation (22.8) (23.3) (5.3) (5.2) (28.1) (28.6)Depreciation – IFRS 16 adjusted (12.8) (12.8) (0.1) (0.1) (12.9) (12.9)Impairment — — (1.6) 0.1 (1.6) 0.1Capital gain/loss 0.2 — 0.1 15.9 0.2 15.9EBIT 14.4 8.7 (0.7) 16.6 14.4 25.9

Net interest expenses (20.9) (21.8) (1.4) (1.1) (22.4) (23.2)

Other financial items (0.5) (1.3) (0.2) (0.4) (0.7) (1.6)Net finance (21.4) (23.0) (1.6) (1.7) (23.1) (24.7)Taxes (1.1) (0.5) (0.4) (1.8) (1.5) (2.3)Net results (8.0) (14.8) (2.7) 13.2 (10.2) (1.1)EPS (0.10) (0.18) — — (0.13) (0.01)Voyage days 6,308 6,243 — — 6,308 6,243

Income statement1 – Odfjell Group by division Financials

1. Proportional consolidation method *Total Includes contribution from Gas Carriers classified as held for sale 5

Assets, USD mill 2Q19 3Q19Ships and newbuilding contracts 1,345.0 1,379.4Rights of use assets 231.3 218.3Investment in associates and JVs 169.8 161.2Other non-current assets/receivables 25.9 25.3Total non-current assets 1,772.0 1,783.9Cash and cash equivalent 104.6 111.5Current receivables 110.1 79.5Other current assets 25.8 23.8Total current assets 240.6 214.8Total assets 2,012.6 1,998.7

Equity and liabilities, USD mill 2Q19 3Q19Total equity 564.2 554.6Non-current interest bearing debt 865.4 893.2Non-current interest bearing debt, right of use assets 188.1 177.1Non-current liabilities and derivatives 28.2 37.9Total non-current liabilities 1,081.8 1,108.2Current portion of interest bearing debt 224.6 199.3Current portion of interest bearing debt, right of use assets 46.6 45.9Other current liabilities and derivatives 95.4 91.0Total current liabilities 366.6 336.2Total equity and liabilities 2,012.6 1,998.7

Book value of ships increased following the delivery of one newbuilding during the quarter

Current receivable reduced following a temporary increase in 2Q19

Increased debt relates to financing of newbuilding delivery

1. Equity method

Financials

Balance sheet 30.09.20191 - Odfjell Group

6

Cash flow, USD mill 1Q19 2Q19 3Q19 FY18Net profit (14.9) (9.5) (1.7) (209.3)Adjustments 33.8 35.8 39.0 104.6Change in working capital (5.8) (14.8) 21.8 (20.6)Other (1.9) 5.7 21.8 167.9Cash flow from operating activities 11.2 17.2 45.5 42.6Sale of ships, property, plant and equipment 2.0 — — —Investments in non-current assets (17.4) (14.3) (57.7) (193.9)Dividend/ other from investments in Associates and JV's — — 20.7 81.1Other 0.1 (0.1) 0.8 14.0Cash flow from investing activities (15.3) (14.2) (36.2) (98.8)New interest bearing debt 20.5 (0.6) 268.5 301.3Repayment of interest bearing debt (35.8) (24.8) (238.9) (267.8)Payment of operational lease debt (9.9) (11.3) (11.7)Dividends — — — (14.6)Other — — — (1.2)Cash flow from financing activities (25.2) (36.7) (2.0) 17.7Net cash flow* (29.3) (33.6) 7.0 (39.0)

Improved working capital after a temporary increase in the previousquarter

Dividend received from Odfjell Terminals related to sale of JiangyinTerminal before adjusting for taxes and transaction fees

Financing cash flow related to concluded refinancings during the quarter and repayment of september 2019 bond

1. Equity method2. * After FX effects

Financials

7

Cash flow – 30.09.2019 – Odfjell Group1

8

USD per metric tonne

42.946.7

40.8 39.3 40.0

15

20

25

30

35

40

45

50

USD

mill

2Q191Q193Q18 3Q194Q18

424398 378 398

350

0

100

200

300

400

500

4Q183Q18 2Q191Q19 3Q19

-12%

Average Platts 3.5% FOB Rotterdam

Gross bunker cost 50.0

Financial hedging -

Adj. Clauses (4.2)

3rd party vessels (3.0)

Net bunker cost 42.9

55.9

-

(4.9)

(4.3)

46.7

47.4

(0.4)

(1.2)

(5.1)

40.8

46.9

(0.6)

(1.8)

(5.3)

39.3

47.0

(0.1)

(1.7)

(5.1)

40.0

Bunker costs after bunker adjustment clauses was USD 40 millcompared to USD 39 mill 2Q19

Bunker adjustment clauses hedged 55% of our total volumesduring the quarter

Our planning for IMO 2020 is progressing as planned and we plan to consume compliant fuel from January 2020. Increased bunker costs will be passed on to customers

We have hedged 9,000 tonnes of MGO for the fourth quarter and has no financial hedges for 2020

Financials

Bunker expenses – 30.09.2019 – Odfjell Tankers

9

Scheduled repayments and planned refinancing, USD mill

Gross debt ending balance, USD mill

ODF07 repaid with cash from balancesheet, total USD 62 mill

Three term loan facilities refinanced with a USD 180 mill RCF

4Q19 balloon has been refinanced in October and leverage reduced

880

1 400

-2000

200400600800

1 0001 200

1 600

20212019 2020 2022

1 150 1 2191 033

Repayment Ending balance year-endPlanned vessel financing

0

50

100

150

200

3Q214Q204Q19 2Q211Q20 2Q20 3Q20 1Q21 4Q21 1Q22 2Q22 3Q22

Bond Balloon Leasing/sale-leaseback Secured loans

Debt to increase in 2020 due to deliveryof newbuildings

Focus remain on reducing debt to lower our break-even levels…

Timing of reaching our targets are market dependent

Financials

Refinanced

Debt development – Corporate and chemical tankers

10

Financials

Target to reach daily break-even level of USD18,000-USD19,500 per day… …Concluded refinancings ytd will reduce break-even levels for the vessels

Reducing our daily break-even levels is high on the agenda to ensure we can generate positive cash flow in any market

We have lowered the daily break-even levels by USD 400/day through refinancings on nine vessels during the third quarter and through redeeming the bond in September 2019 (lower interest rates)

Source: Odfjell SE CMD 2019

Concluded refinancing has been done at attractive levels and will reduce daily break-even for the vessels involved

Financials

We have secured financing for all chemical tanker newbuildings and no equity instalments remains

The first newbuilding from Hudong was delivered in August 2019. Remaining capex for 2019 relates to second newbuilding from Hudong scheduled for delivery in November

We have no capital commitments for chemical tankers beyond 2020

Other chemical tanker investments for the next three years amounts to about USD 11 mill, mainly related to installation of ballast water treatment systems.

We expect the average annual docking capitalization to be about USD 15 million in the years ahead

Odfjell Terminals maintenance capex through 2021 is USD 3 mill **

USD mill 2019 2020 2021

Chemical Tanker newbuildings

Hudong 3 x 49,00 dwt (USD 60 mill) 42 84 —

Hudong 2 x 38,000 dwt (USD 58 mill) 6 87 —

Total 48 171 —

Instalment structure - Newbuildings

Debt installment 48 171 —

Equity installment — — —

Tank Terminals (Odfjell share)*

Planned expansion capex —** —** 1**

* Tank Terminals to be self-funded meaning no cash flow from Odfjell SE to meet guided capital expenditures – Tank terminal Capex listed in table is expansions that will impact our P&L**Our capital expenditure programme for the US will be updated when a new strategy has been concluded together with our new JV partner at the US terminals.

11

Capital expenditure programme – 30.09.2019

AgendaHighlights

Financials

Operational review/Strategy

Prospects and Market update

COA coverage and rates were stable during the quarter. Our stance to not pursue low COA rates in present market remains intact

13

3Q-17

4Q-16

1Q-15

2Q-18

2Q-15

1Q-16

2Q-19

4Q-15

3Q-16

3Q-15

2Q-16

1Q-17

2Q-17

4Q-17

1Q-18

3Q-18

4Q-18

1Q-19

3Q-19

Contract coverage

COA rates Spot rates

Contract coverage was stable during the quarter

Our stance to not pursue low COA rate renewals remains intact

This adds higher exposure to firming spot rates and we could see lower COA coverage going forward

COA rates vs spot rate development in main tradelanes

Spot rates on main tradelanes increased by 2% during the quarter

Limited amount of COA renewals this quarter

Average COA rate renewals are up 6.1% on average in 2019 (up from 5.7% as of 2Q19)

Comments:

56% 54%

70%

55% 57% 60% 61% 58% 61% 60% 59%55% 55%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

4Q15 3Q172Q171Q16 2Q16 1Q173Q16 4Q174Q16 1Q18 2Q18 3Q193Q18

49%

4Q18 1Q19 2Q19

48% 50%

COA coverage Average

Operational review/Strategy

60

80

100

120

140

160

201520122008 2010 20142009 2011 2013 20192016 2017 2018

-7.8%

-1.4%Chemical tanker spot earnings index (midcycle = 100)Source: Clarkson Platou

Odfix indexOdfix average 2008-2018

0,0

3,0

6,0

4Q17

0,4

2Q18 3Q18 1Q19

3,8

2Q19

3,3

0,4

3Q19

3,4 3,5 3,43,8

1Q18

3,7

Mill

ion

tonn

es

4Q18

0,5

3Q17

3,3 3,3

3,0 3,1

0,4 0,50,5

3,3

0,5

3,1 3,2 3,0

3,6

Volumes carried (Odfjell owned Inc. TC/BB)Volumes carried by Pool & Commercial mgt

147 197 164253

212

128

288 348

0

8 000

4507 000

5 500

7 500

6 000

6 500

3Q17

7 189

169

1Q191Q18 3Q18

7 133

4Q18

6 3086 293

2Q19

7 284

3Q192Q18

6 636

7 237

6 7067 065

7 4347 666

7 400

4Q17

6 5446 274

7 636

7 025

6 243

Voyage days (Total inc. Pool & Commercial mgt)Voyage days (Odfjell owned inc. TC & BB)

Off-hire days RHA (Odfjell owned)

Operational review/Strategy

ODFIX underperformed the general market index this quarter. This is driven by:ODFIX reflecting lower volumes while spot index is a pure rate index (rates)

Volumes decreased due to:Seasonally higher plant maintenance and seasonal lower demandIncreased competition from swing tonnage, especially on back-haul routes

Odfjell Tankers volume developmentObservations

ODFIX versus chemical tanker spot rates Odfjell Tankers voyage days development

14

Tankers: ODFIX underperformed the general market index this quarter due to less volumes carried

Increased volatility of bunker fuel spreads after the summer. This is mainly driven by HFO prices due to preparations for lower demand

HFO and VLSFO price spread ranged between USD 120 and USD 215 per tonne in October depending on port (in periods, VLSFO and HFO was priced at par in Ulsan and Singapore)

Forward prices are still indicating VLSFO prices in Rotterdam to be at similar levels as HFO in 2018 and 2019

Still too early to conclude……But the price differential seen between bunkers with

3.5% sulfur content and 1% sulfur content was USD 38/tonne on average could be another indicator that the price spread/hike won’t be as severe as feared:

15

Operational review/Strategy

0

50

100

150

200

250

300

350

400

450

500

550

600

650

700

ShanghaiFujairahRotterdam

USD/

tonn

e

HoustonSingapore Ulsan New York 2020 forwards*

MGO VLSFO HFO HFO Purchase price 2018 HFO Purchase price 2019

Source: Platts, Morgan Stanley, Odfjell SE, Averge prices for October 2019

IMO 2020: Price spreads between fuels and ports are volatile mainly caused by changes in HFO – 2020 forwards indicates bunker costs in line with 2018/19

Observations

0

10

20

30

40

0

200

400

600

800

USD/

tonn

e

2012

USD/

tonn

e

2014201320112010

HFO (3.5% Sox) Bunker fuel (1.0% Sox) Avg spread

Price overview of MGO, HFO and VLSFO (0.5%) by major port (October 2019 avg.)

Price spread between 3.5% bunker fuel vs 1.0% bunker fuel in Rotterdam between 2010-2014

16

93% 93%

50%

60%

70%

80%

90%

100%

1Q182Q16 4Q173Q16 2Q174Q16 1Q17 3Q17 2Q 18 3Q18 4Q18 1Q19 2Q19 3Q19

Stable utilisation during the quarter

EBITDA margins slightly improved following reduced G&A costs

Our largest terminal in Houston benefits from a strong storage market and high activity. With a fully occupied terminal, focus is on improving efficiencies and grow existing land at the terminal

As a part of LG's exit from Asia, Odfjell SE may consider to tag along on a sale of its ownership in the terminals in China

Operational review/Strategy

94% 95% 99% 99% 98% 99% 100% 100%

0%

20%

40%

60%

80%

100%

4Q17 3Q191Q18 3Q182Q18 4Q18 1Q19 2Q19

Odfjell Terminals: Utilisation development Odfjell Terminals Houston quarterly utilisation

Odfjell Terminals: EBITDA and margin developmentComments

0510152025303540

0

5

10

15

USD

mill

1Q17

%

3Q162Q16 4Q16 3Q172Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

EBITDA margin EBITDA

Terminals: Slightly improved margins following reorganisation of Odfjell Terminals – Houston to remain a key focus area going forward

17

Odfjell has done and is actively working on reducing our environmental footprint through various initiatives – Odfjell is acting today for a better tomorrow

‘’ Our license to operate is dependent on our social responsibility – In our view, profitability and sustainability are interconnected. As a global company, we have a responsibility for our

employees, our investors, our customers, the local communities where we operate, and the global environment – and we will only be able to prosper and grow if we act in a sustainable way. We

build for the future, and act today for a better tomorrow’’

Kristian Mørch, CEO Odfjell SE Odfjell Sustainability report June 2018

Categories Odfjell ranking

Business Ethics 1 out of 17

Corporate Governance 5 out of 17

Carbon – Own operations 2 out of 17

Emissions, Effluents, and waste 4 out of 17

Human Capital 13 out of 17

Occupational health and safety 4 out of 17

Overall ESG ranking 5 out of 65

Odfjell ESG ranking:

Source: Sustainalytics, Odfjell SE

EEOI

Weatherrouting

Fuel cellproject

Propeller polishing

Active role in various ESG

relatedinitiatives

Retentionrate/

Personellexperience

Detailed EEOI monitoring has been ongoing since 2009 Our g CO2/ tonne mile has been reduced by 33% in the corresponding period36% of Odfjell vessels will move from D to A+ in Energy rating

Advanced weather routing systems to avoid bad weather and take advantage of currents

2018 effect: Saved 75 days – 1,980 tonnes of fuel - 6,138 tonnes CO2

Fuel cell project to be piloted on an Odfjell ship within two years Fuelled by LNG, Ammonia, Ethanol, BiofuelsReductions: 35% Fuel consumption - 54% CO2 - 90% SOx – 80% NOx

Polishing propeller blades on our ships increases efficiency by 11%Studies from NTNU states that this can increase speed by 0.5 knots that

equates to 100 tonnes less fuel on a Panama-Yokohama journey

98% retention rate among Odfjell seafarers96% of all officers served on board super-segregators (unique class familiarityA skilled and experienced crew is crucial to operate our fleet in a efficient and safe

manner – We don’t compromise on safety

MACN, UN Global Compact Membership, Membership Cardo Disclosure Project, Pledge signed to achieve UN SDGs, Diversity policy, Local CSR policy, The getting to Zero Coalition, CLIMMS, NCE Maritime Cleantech, Compliance to various other efforts and reporting initiatives like Poseidon Principle, Ecovadis, Trident Alliance +++

Operational review/Strategy

AgendaHighlights

Financials

Operational review/Strategy

Prospects and Market update

VLCC Suezmax Aframax LR2 LR1 MR Vegoils Chemicals

3Q-19 Oct-19

26,297

120,245

17,495

83,423

12,543

46,991

15,039

43,232

12,900

26,427

12,900

19,43617,750 18,100*

3Q-19 Oct-19 3Q-19 Oct-19 3Q-19 Oct-19 3Q-19 Oct-19 3Q-19 Oct-19 3Q-19 Oct-19 3Q-19

The tightening VLCC market has filtered through all vessel classes in line with historical correlation patterns – Chemicals having the longest time lag

TCE

rate

s (U

SD/d

ay)

Source: Clarksons Platou Securities, Odfjell * Odfjell SE 3Q19 TCE revenues/day

0.86 0.84

0.0

0.2

0.4

0.6

0.8

1.0

Corr

elat

ion

coef

ficie

nt

VLCC & MR MR &Odfjell Deep-sea TCE

Historical annual correlations (2004-2019)

23,050

Comments

Historical correlation between tanker segments are high…

…with product tankers swinging intocrude…

…and product tankers swinging intovegoils and chemicals…

…and chemical tankers swinging into oilproducts

There has historically been a time lag up to 6 to 8 weeks before the effect reacheschemicals…

…and another 6 to 8 weeks before visible in P&L accounts…

A sustainable recovery in crude and products is therefore needed to impactchemicals

Market update

19

0%

20%

40%

60%

80%

100%25,5%

jan-17

sep-19

jun-19

jan-18

jan-16

jan-19

27,2%Trading chemicals/Vegoil Trading CPP/Crude

02468

101214

apr-19jan-19 feb-19 mar-19 mai-19 jun-19 jul-19

CPP

Palm

Oil

Chem

ical

s

1

2

3

28 incremental MR’s were trading chemical/vegoils compared to June

CPP suffered from Saudi attacks in September, but has since then recovered

Swing tonnage expected to be reduced in coming months

2019 has been a strong year for palm oil shipments with a tonne-mile demand growth of 7.6% y/y (January to July)

This has supported Vegoil rates…

… And partly contributed to continued high influx of swing tonnage in our markets in 2019

Stable rates during the quarter…

… But high plant turnaround and seasonally lower demand impacted volumes

We find it encouraging to see rates holding up despite increased swing tonnage last quarter – Signalling the underlying firming trend for chemical tankers

Annual tonn-mile demand (3-month rolling y/y) Annual demand growth (Jan-Jul 2019) 30

0

5

10

25

15

20

jan-2018

jan-2016

jan-2017

des-2018

Oct-19

0

20

40

60

80

jan-2017

jan-2016

jan-2018

des-2018

2520

0

5

30

10

15

jan-2016

jan-2018

jan-2017

des-2018

Oct-19

Thousand USD/day

Thousand USD/day

USD/Tonne

Source: Clarksons Platou, Odfjell, SPI Marine

Continued influx of swing tonnage, seasonally weaker demand and plant turnarounds led to a slower third quarter but still with a strong underlying trend

Fundamental drivers: Rate development: Comments:

25

0

5

10

15

20

mai-19jan-19 feb-19 mar-19 apr-19 jun-19 jul-19 nov-19aug-19 sep-19 okt-19 des-19

Planned maintenance Unplanned maintenance

20

Market update

Source: Clarksons Platou, Odfjell

Orderbook remains low together with appetite for new orders – A reversal of swing tonnage is a key for the chemical tanker recovery to gain pace

Market update

21

Orderbook to fleet ratio (total fleet) New orders

Limited interest for new ordersAccess to financing is a bottleneck that could hinder major series of

speculative newbuilding ordersThe shipping industry is exposed to environmental regulations and are

facing a propulsion dilemma – This could dampen owners appetite for new orders

Orderbook as a per cent of total fleet is at historical low’sFleet growth projected to 1.8% for 2020 and 1.6% for 2021Odfjell accounts for a meaningful share of the outstanding orderbook

0

10

20

30

40

50

60

70

80

jan-

02

jan-

16

jan-

12

jan-

14

jan-

17

jan-

10

jan-

20

jan-

18

jan-

19

jan-

04

jan-

99

jan-

00

jan-

07

jan-

11

jan-

15

jan-

03

jan-

08

jan-

09

jan-

13

jan-

06

jan-

01

jan-

05

%

Historical low’sOrderboook %

jan-

11

jan-

08

jan-

10

jan-

14

100

jan-

16

400

jan-

99

jan-

13

600

jan-

20

jan-

09

50

jan-

00

0

jan-

01

200

300

550500

jan-

03

jan-

12

jan-

15

jan-

04

jan-

17

150

jan-

07

jan-

19

jan-

18

jan-

02

350

650

450

jan-

06

250

jan-

05

k/dw

t

12-month rolling orders Historical average

Seasonally weaker 3Q19

Key directional drivers in 4Q19

GDP & Middle East tensions

Orderbook

Swing tonnage

IMO 2020Scrapping – Slowsteaming –

Swing tonnage

Dem

and

Supp

ly

+4%p.a. + tonne-mile effect

The market has gone through a period with high fleet growth, but we expect more rational growth towards 2020

12

Deep-sea fleet development, DWT mill.

72

62

928994

66

1681

5968

11

88

68

54

1213

17

74

75

77

15

76

1613

53

20092008 20142011

9

2010

47

2012 2018E 2020E2013

51

2017

50

2019E

5710

2015

5672

2016

41

126110

1264

Core fleetSwing/other fleet

+6%p.a.

+2%p.a.

ce: Odfjell

Yowth +14% +1%+7% +5% +2% +4% +5% +5% +8% +8% +2% +3%+2%

p.a. +/- Swing tonnage

Market update

Market outlook conclusion: Tonne-mile demand outlook remains robust and slower supply growth should ensure a continued recovery of our markets

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Third quarter was seasonally impacted by lower demand and high maintenance on chemical plantsGeopolitical tensions (Saudi attacks) created a short-term slowdown in our markets in September

Ramp up new plants in the US and Middle East keeps supporting demand, although some delaysImproved crude & product tanker rates adds incremental demand for chemical tankers on back-hauls

IMF downgrades global GDP outlook for the fifth consecutive time. Structural shifts and limited supply growth to support a continued recovery

Orderbook to fleet ratio at low levelsAppetite for new orders remains low – Regulations and propulsion dilemma could dampen new orders

Swing tonnage increased this quarter due to MR newbuilding deliveries and a weakening CPP marketStronger CPP rates could reverse last year’s trend and significantly impact supply in our markets

Increased bunker costs to be passed on to customers. Owners needs to be disciplined in spot as well Biggest effect from IMO 2020 would be reduced swing tonnage from CPP tonnage

Lower earnings compared to previous quarter driven by seasonality – Underlying trend points to a continued firming marketResults

Spot rates and COA rates keeps having a strong momentum since the market turned in late 2018 but are still at low levelsOperational/strategic review

Stable performance which is expected to continue going forward – Houston remains a focus area for growth in this divisionOdfjell Terminals

Encouraging to see Crude and CPP markets improving – Underlying demand growth is strong and supply growth is limitedMarket outlook

We expect to report improved results in the fourth quarter - We reiterate that the chemical tanker market recovery should continue into 2020Prospects

Odfjell SE – Summary and Prospects

Prospects

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Contact

Investor Relations & Research: Bjørn Kristian Røed | Tlph: +47 40 91 98 68 | Email: bkr@odfjell.comMedia: Anngun Dybsland | Tel: + 41 54 88 54 | Email: anngun.dybsland@odfjell.com

ODFJELL SE | Conrad Mohrs veg 29 | P.O. Box 6101 Postterminalen | 5892 Bergen, Norway Tel: +47 55 27 00 00 | Email: ir@odfjell.com | Org. no: 930 192 503

Odfjell.com