Odfjell Group — Call Transcript 2025

Okay, good morning to all of you, and good morning also to those who follow us live. This presentation is given at the Western Norway Stock Exchange seminar here close to Bergen Airport. I also want to remind those following us online that it's possible to type in questions during the presentation, and we will address them afterwards. Today's agenda is the same as always. I will go through the highlights, and then my colleague Terje Iversen, he will take you through the financial results. I will conclude this presentation with an operational review and a market update and prospects going forward. If we then turn to the highlights, I'm first and foremost extremely satisfied to see that we have completed another quarter without any significant incidents in our fleet. We also, in my opinion, delivered very resilient results in a challenging market, first and foremost because of the political turmoil that we all observe, and also due to the unresolved trade negotiations that are still ongoing. I will come back to that later. On top of that, the summer season is normally a more quiet season for chemical tankers. Despite all those negative factors, we still managed to deliver a $6 million increase in our tank charter earnings. In the second quarter, we earned $174 million, and this compares to $168 million in the first quarter. Our tank charter earnings per day was $30,306, and this is up from $29,556 in the previous quarter. We also saw an increase in our EBIT, $59 million, compared to $54 million in the previous quarter. Bottom line, we delivered net results of $40 million, and adjusted for one-offs, it's $42 million, and this compares to $33 million in the first quarter. We also saw a net contribution from our terminal division of $1.9 million, and this compares to $2.9 million in the previous quarter. The reduction is in full due to one-offs on corporate level for the terminal side. I'm also extremely pleased to report another reduction in our carbon intensity. This is the first time that Odfjell is reporting an AER (annual efficiency ratio) below 7. We are now at 6.8. I also have to add that the summer season is normally the best quarter when we are measuring carbon intensity, simply because we see much more calm weather during the summer months. Finally, the board also approved a dividend of $0.48 per share, and this is in line with our established policy of half-yearly distributions of net result adjusted for one-off items. That concludes my quick introduction, and I give the word to Terje. Thank you, Harald, and good morning to all of you. I will, as usual, start with the income statement for this quarter. As Harald also mentioned, the tank charter earnings this quarter ended at $174 million, $7 million up compared to the first quarter. The main reason for the increase in the tank charter was that we had increased volumes, and we also had more commercial days in the second quarter compared to the first quarter. Commercial revenue days increased by 77, and we also added two tank charter vessels on short-term tank charter this quarter. [OpEx] increased from $380 million to $423 million, mainly due to increased docking activity in the quarter. We also had one short-term tank charter vessel being out of operations because it was involved in a collision at the start of the quarter. Tank charter expenses ended at $4.1 million, quite comparable to the preceding quarter. Also, operating expenses $52.9 million, very much in line with the previous quarters. We saw that G&A slightly down compared to the second quarter, ended at $20.6 million, a bit lower than normal this quarter because we have the effect from holiday payments, normally reducing the G&A in the second quarter, but we also had increased legal fees in this quarter. We ended very much in line with the previous quarter in total. After G&A, we then delivered an EBITDA of $98.4 million compared to $93.1 million in the second quarter. Depreciation and amortization very much the same level as the previous quarter, leading to an EBIT of $58.6 million compared to $54.4 million. Net interest expenses decreased from $19.1 million to $16.4 million. Part of the reason is that we also expensed amortized financing cost in the second quarter of $2.1 million. The decrease is not as large as it appears, but even though we are seeing that net interest expenses are coming down because we are reducing our debt, and also slightly lower SOFR this quarter, and also better priced financing in total for our balance sheet. After all the financial items being capital loss this quarter, we ended with a net result of $40.1 million, up from $34.4 million in the second quarter, leading to earnings per share of $0.51 this quarter. Looking at the tank charter compared to our cash per given that we measure each quarter, we saw that tank charter earnings ended per day at $33,306 in the second quarter, up from $29,556 in the previous quarter. Cash per given per day was $23,791, slightly improved since the first quarter, bringing the 12 months rolling average to $23,578, well below the term tank charter earnings that we are generating on our vessels. As you can see, we have been very much cash positive since the fourth quarter 2021 when it comes to comparing tank charter earnings per day with the cash per given for our vessels. Going forward, we expect the cash per given to remain at these levels, and the same goes with the P&L breakeven going forward. Looking at the balance sheets, the main items here are that we took delivery of two vessels, Bow Precision and Bow Performer, both vessels that we had on operational or tank charter lease before we acquired them according to purchase options that we had in the agreements. Ships and new building contracts increased to $1.3 billion in this quarter. We see that the right of use assets decreased because these were included as right of use assets with the tank charter agreements and the bare boat agreements that we had before we exercised the options. Cash and cash equivalent increased to $131 million, or if you include underwritten loan facilities, we are at a total available liquidity of $305 million. That includes the effect from the loan that we issued, the bond loan that we issued in May this year of $1 billion. We used all that proceeds to repay our revolving credit facilities. We are not increasing the cash at hand, and we are not increasing the debt, but we are increasing available liquidity in case we should need that for various purposes. We see that current receivables were reduced this quarter, reducing our working capital and increasing our operational cash flow. Total equity increased with $49 million compared to our being our total comprehensive income for this quarter, and we have now equity percentage around 46% at the total for the group. We also see that non-current interest-bearing debt decreased, the main reason being that we are reducing our debt, as mentioned, but also that two loans were reclassified because they're maturing first half next year and now included as current portion of interest-bearing debts per end of the first half. Looking at the cash flow, as I said, we improved the working capital quite substantially this quarter, leading to operating cash flow this quarter of $109 million, increase of $49 million compared to the first quarter. The main reason being, of course, we had improved results, but mostly due to the improvement in our working capital. Actually, I think this $109 million is the second best quarter when it comes to operational cash flow for Odfjell in history, so we're very satisfied with the cash flow we saw this quarter. On the investment side, we acquired Bow Performer in April. Looking at the cash flow for investment activities, that was -$54.6 million. On the debt side, we did repay loan amounts under revolving credit facilities, and we took this new bond loan. In total, we had negative cash flow from financing of $10 million this quarter. In total, we then had an improvement in cash and cash equivalents of $44.7 million in the second quarter. Looking at the more long-term free cash flow generation from our business, as I said, we had a strong operating cash flow in this quarter due to the improvement in working capital and improved results. We have also included here cash flow from investments this quarter, which was done by acquisition of Bow Performer proposition. Bow Precision actually was refinanced in the first quarter when we exercised the purchase option, so we drew a new loan for that vessel in the second quarter. The actual delivery took place only 1st of April, so that is included here in the second quarter as investments. Free cash flow this quarter was based on operating cash flow of $109 million minus investments of $98 million, ending at $12 million. However, looking at the more long term, we see that 12 months rolling free cash flow is now at around $60 million, and we adjust that for repayments related to right of use assets. We are at $49 million on a 12 months rolling basis this quarter. On the debt side, I mentioned that we issued a new bond. Per end of the second quarter, we have a debt of $742 million. Interest-bearing debt, no significant changes expected for the remainder of the year. As you can see on the bottom of this slide, we are expecting a slight decrease in interest-bearing debt in the coming two years. In June, or I think it was in May actually, we issued this new bond of NOK 1 billion, swapped that to $97 million, and that was issued at the price of a margin of 275 basis points above NIBOR, which is the lowest price shipping bond since 2014. We're very satisfied with the timing and the pricing that we achieved on that issue. As I said, we have only used the proceeds to repay loan amounts on our revolving credit facility, not increasing the debt on our balance sheet. The total all-in cost related to that is 2.5% per year to have that facility or cash available in case we should need that for investments or other purposes. During the second quarter, we added one vessel to the $242 million bank facility that we managed to have in place in the first quarter. Also, in July after the quarter, we completed the purchase of one additional vessel that we had on operational lease, both Gemini, which also then has been included in the same loan facility. Going forward, looking at CapEx and tank charter commitments, CapEx being new buildings and also declared purchase options stands now at $158 million in the coming years. That includes two vessels, this one Bow Gemini that we acquired already in July this year, and we also exercised purchase option for Bow Hercules, which we will take delivery of in the first quarter 2026. That summarizes to $71 million. I have to add that these purchase options are very favorable comparing to the market values. That goes to also Bow Performer and Bow Precision that we have taken delivery of in the past few months. We have two new buildings that are being delivered in 2026 and 2027. In total, $158 million in CapEx commitments. Looking at the tank charter commitments, no new news in this. We have around $1.1 billion in tank charter commitments for vessels to be delivered in the coming years from 2026 to 2028. These are 18 vessels that are on long-term tank charters, eight years per vessel that we are taking commitments to. The total commitments are, as I said, $1.1 billion. When these are added to the balance sheet, that will be a smaller amount because we are then excluding the OpEx element of these commitments. It could be that other tank charters that we have on vessels that we have on tank charters today will be redelivered. The total amount of the debt will maybe not increase with this amount. These vessels together with our new buildings account for 14% of the current order book within our core segment. I can also add that five of these vessels that we have on tank charters that are going to be delivered have a fixed tank charter element and also a variable tank charter element depending on the earnings of these vessels. What is included there is the guaranteed and fixed element of these tank charter agreements. I think that leaves the floor to you again, Harald. Thank you. By that, I will continue with an operational review. I start with our contract coverage. On the left-hand side of this slide, you will see that we had a slight reduction in our contract coverage, meaning that 51% of the cargo that we carried was contract cargo, while the remaining 49% were spot cargoes. If you, at the same time, look at the graph to the right, you will see that we have a quite substantial increase in volumes during the quarter. We are back to 2024 levels of 3.4. That means that we haven't seen a dramatic reduction in contract volumes, but what we've seen is an increase in spot cargoes. For that reason, we have seen a reduction in the percentage. There is no dramacy in those figures. Actually, I will once again say that I'm impressed by our team and the fact that they've managed to increase the total volumes in what we could characterize as a difficult quarter. That is also reflected in the graph to the left, where we see that we saw an increase in average earnings of 1.2% within the Odfjell fleet. At the same time, we saw a decrease of 3.8% in the so-called Clarksons spot index. If we look at the various cargo types that we are carrying, we saw a slight decrease when it comes to specialty chemicals. We saw relatively stable volumes on the commodity chemicals, and those are the chemicals that are typically transported in large volumes. We also saw a slight growth in veg oils. Those are cargoes that we normally do not carry because the freight rates are lower than what you see for commodity chemicals and specialty chemicals. The same goes for clean CPP cargoes, where we also saw an increase in Odfjell volumes. That is also outside our core business. As a consequence of reduced specialty chemicals, we focused on veg oils and CPP. By that, we managed to increase our earnings and also our results and volumes. Turning to sustainability, as mentioned, we are this quarter reporting an AER, the annual efficiency ratio, which is the average carbon intensity figure for our fleet of 6.8. That is a new record low for Odfjell. It's the first time that we are reporting this figure below seven. There are many reasons for that. One reason is the continuous work that we do to retrofit energy efficiency devices. The sails are also starting to take effect. We installed the first set of sails on Bow Olympus during the first quarter. The immediate results were extremely encouraging. We saw savings up to 40%. On the first voyage, we saw average savings of 20%. Since then, we have had 48 sailing days. We all know how the European summer has been; it's been calm and sunny weather, so we have had limited utilization of those sails. Still, we are at the average expected for this type of sails, which is between 8% and 10%. We are now preparing the vessel, she's right now in Houston, and she's preparing for a transpacific voyage. That is more or less one month in open sea in September. We are both excited and curious about the results that we will experience during that particular voyage. That is more or less a one-month voyage before she's reaching Yokohama. On top of that, we have already, despite that we don't have a full picture of how those sails are actually working, decided to install sails on two more vessels, two of the new buildings that are presently being constructed in Japan. Those vessels will be delivered, one in 2026 and one in 2027. On the terminal side, we have relatively stable throughput on all our terminals. We have seen a slight decline in Korea, but that is compensated for in the U.S. and Europe. We did see stable results. The challenge is that the figure is being impacted by one-offs at the corporate or holding level. We are extremely happy to see that all the expansion projects that we've conducted on basically all our terminals are now starting to pay off. We are receiving dividends from Korea, from North Nazi in Antwerp, and also quite substantial dividends from our terminal in Houston. This is a stable business. The outlook for this segment is that we will have stable and similar performance also in the quarter that is coming. When it comes to expansion projects, which is maybe the most cost-efficient that you can do on the terminal side to continue to build on the established infrastructure, we did inaugurate one tank pit in Antwerp this quarter. We are now building another 12,000 cu m of stainless steel tanks. Those will be inaugurated later this year. I'm also happy to see that finally we get some traction in Korea. We are building out the so-called E5 area. We have started with the groundwork, and the first 10 tanks will be in operation late next year. Due to the expansion, we are also improving our berth capacity, and we've also decided, therefore, to upgrade one of the two berths that we have in Korea. I would say that we have stable and good development on the terminal side. Then to the market update and prospects, this graph reflects what I've already said. Normally, the summer season is a slow season. People are on vacations. Many of the factories are reducing their activity. The need for the chemicals that we are transporting is seeing a dip during the summer months. This trend has been reinforced this year, partly because of all the geopolitical turmoil that we are all observing, and partly because too many of the trade agreements or tariff agreements between the U.S. and other countries are still unresolved. For that reason, we have seen slightly higher reduction in the spot rates than what we've seen previous years. We are not concerned about this. We think there are logical explanations to it. If we go to the next slide and look at the tariffs, I think what strikes your mind when you see the list of tariffs is that what's outstanding today is basically the BRICS countries. It's Brazil, it's Russia, it's China, it's India, and it's South Africa. Maybe it's more politics into that than real financial issues. What we see is that those agreements that have been concluded are concluded at levels where our customers seem to feel that they are coping with that. The American Chemistry Council estimates that the growth will be slower than they have estimated previously, but we don't observe that there is any panic going on. There is still a significant surplus in the balance between chemical imports and exports into the U.S. Odfjell has approximately 20% of that market. The expectation for the production in the U.S., which is basically the Texas area, is that we will see a modest increase this year, a modest increase next year, and then it will be back to normal levels. Then to the swing tonnage, those are vessels that are being built so that they can carry both easy chemicals and what they are normally doing, the CPP or petroleum products. That is an important figure for us because it's a disadvantage if those vessels are starting to swing into doing chemicals instead of gasoline and diesel. We have seen during the past few quarters, we have seen an increase of swing tonnage swinging into chemicals. Now, if you look at the graph to the left, you will see that there has been an upswing in MR rates. I think that will convince and encourage MR owners to swing back into where they belong on the CPP side. We are not concerned about the influx of swing tonnage going forward. If we look at the order book, the most positive news this quarter is that there were absolutely zero new orders for chemical tankers in our segments this quarter. The order book is exactly the same as we reported after the first quarter. If we start with the super segregators, which is basically the bread and butter for companies like Odfjell, we control 40% of that segment. That is a segment where we will see a slight increase in capacity, and that increase is relatively modest. If we then go to the next segment, which is what we call large stainless steel tankers, those tankers are more or less the same size as the super segregators. The big difference is that they have much fewer tanks. A 33,000 tonne neck inside a large stainless steel segment typically has maybe 20, 24 tanks, while the super segregators are between 40 and 50 tanks. In the large stainless steel segment, we will see a decrease going forward. That segment is getting smaller and smaller every year. If you combine the super segregators and the large segment, in total, those two segments together will see a slight decrease in capacity. That means that where we really see a huge increase is on the medium stainless steel segments. The medium stainless steel segment used to be dominated by what they call the J19s, the typical 19,000 or 20,000 tonners being built in Japan. Those ships, there are approximately 350 of them in total. Those vessels are slowly being phased out, and they are being replaced by the more modern J25, which have much more loading capacity, of course. They have the same draft and the same crew, so meaning that they are maybe 25% more efficient than the old J19s. The increase is coming as a consequence of J19s being replaced by J25. Right now, the order book is in total approximately 20% of the sailing fleet, and Odfjell has 14% of that order book, which means that we will see a slight growth in our capacity in the years to come. This is my last slide, just to second last slide, just to summarize what I've said. We do see that slowly, more and more of those bilateral trade or tariff agreements are falling into place. We have seen that IMF has made a small upgrade on GDP production, and the transportation of liquid chemicals and the world GDP is extremely closely connected together. It's not possible to imagine one single industrialized process where the chemicals that we are transporting are not involved. Every process that you can think of, whether it's car industry, agriculture, medicine, food, they all need the chemicals that we are transporting. For that reason, this GDP figure is extremely important for our segment. On the geopolitical side, we continue to see challenges. I think the world has more adapted to sailing around Suez and the Red Sea. We expect to continue to do that for the foreseeable future. We are concerned about sailing through into the Arabian Gulf through the Strait of Hormuz. Now it seems that that situation has come under control, and we are today sailing as normal in and out of the Arabian Gulf. We do expect that the chemicals production and the need for transport will be more or less stable this year and also next year. There is kind of a possibility for an upswing due to the increased production of oil and the increased refinery capacity in China. Swing tonnage, I've already mentioned. We expect that those vessels to either be stable or slightly decrease. By that, we foresee a stable outlook for the trade. We see a slight uptick on the GDP. We see that tariffs are slowly coming in for landing. We don't see any hiccups when it comes to the new buildings. We also feel that we have a good overview of the swing tonnage. To conclude this presentation, then we did deliver a result that we have every reason to be proud of. We managed to increase our earnings and our results in a declining market. We saw a slight increase in volumes. This is basically due to the fact that we swung into CPP and vag oils. We did not renew any significant contracts during the quarter. Those contracts that were renewed were renewed more or less at expiring terms. On the terminal side, we had stable results in the second quarter. This is in line with the previous quarter. As mentioned, we did have some one-offs at corporate level that reduced our net results. The outlook, we have seen some reduced activity in line with the slower summer season. We do think that increased production of oil will have a positive effect. We do, as mentioned, expect the swing tonnage to at least not increase. Based on that, we expect the third quarter to be in line with or maybe slightly below the second quarter results. That, ladies and gentlemen, concludes our presentation, and we are open for questions. Have you received anything, Nils? Yeah, we could just start out to sort things out. We'll start with questions from the audience here, and then we'll continue with questions from the webcast. We'll bring a microphone, so please. Anyone? Nils, if you have questions from the webcast. I have a couple of questions, yes. Maybe you. You guys should borrow your microphone. There you go. Thank you. I'm just going to read this question. It's from [Sam Elliotson]. You noted an order book of 20%. Similar companies in the industry tend to report a figure below that. How does Odfjell estimate the figure? I guess the question is sort of how we define the current fleet and the existing order book in our core segment. It's actually a good question. We are calculating deadweight versus deadweight, and that's how we calculate the figures. It's an interesting question because the question is, right now, how is the compliant fleet, the fleet that we are actually competing with, how is that fleet developing? What we've seen lately, for example, when it comes to the J19s that I mentioned, there are almost 350 of them, is that many of those vessels are being sold for regional trades in the Far East. They are still alive, they are still being counted, but they are no longer competing with the international fleet. I think this guy has a point that these figures are not absolute. Our figures are relative to each other every quarter. I think when you're looking at the figures that we are reporting, you have to compare them to what Odfjell has been reporting in previous quarters, and not necessarily with what other companies or other analysts are reporting, because they might have a different way to calculate the volumes. Also, it's different what they actually include as a core chemical tanker. We have very specific definitions of what's being included and what's not being included. Thank you, Harald. The next one is from [Evan Colescore]. He's asking, what is the implied daily TCE for the current COA contracts? I'm not sure that's something we comment on specifically. Maybe an answer could be given. There, I have to disappoint our viewer. That's not the figure that we are commenting on. The next one is again from [Sam Elliotson]. You said you engaged more in CPP. Was it mostly in the Middle East to Asia trade or somewhere else? No, that was, as you might have understood, the trades in and out of the U.S. are those being by far most affected by the turmoil that we are observing due to the tariff discussions. For that reason, we have utilized the local CPP market in and out of the U.S. to kind of occupy our vessels while we are waiting to fill up our ships. Thank you. There is another question here from [Jusse Verberkmos]. Will swing tonnage grow if geopolitical issues are going to be solved? He's asking about the product tankers market, I guess, and the geopolitical situation. Where do I start? I think if there is a peace treaty between Russia and Ukraine, that will have an impact on the regional trades in Europe that I think will be positive for the regional trades. It is a question what happens to the shadow fleet. The shadow fleet today counts for some people say it's 25% of the total tanker fleet is being defined as part of the shadow fleet. If those vessels are being allowed, and that is a ridiculously inefficient way of running shipping to service only three countries in the world: Venezuela, Iran, and Russia. If those vessels are being allowed to simply swing back into the compliant fleet, then that might have a negative effect. I don't have any good answer to that question. There are factors going in all directions there. No, absolutely. Thank you, Harald. I think that was actually the final question from the webcast audience. If there's any more in the audience here, thank you very much for your attention and for showing up.

Speaker 2: Okay, good morning to all of you, and good morning also to those who follow us live. This presentation is given at the Western Norway Stock Exchange seminar here close to Bergen Airport. I also want to remind those following us online that it's possible to type in questions during the presentation, and we will address them afterwards. Today's agenda is the same as always. I will go through the highlights, and then my colleague Terje Iversen, he will take you through the financial results. I will conclude this presentation with an operational review and a market update and prospects going forward. If we then turn to the highlights, I'm first and foremost extremely satisfied to see that we have completed another quarter without any significant incidents in our fleet. Okay, good morning to all of you, and good morning also to those who follow us live. okay good morning to all of you and good morning also to those who follow us live This presentation is given at the Western Norway Stock Exchange seminar here close to Bergen Airport. this presentation is given at the western norway stock exchange seminar here close to bergen airport I also want to remind those following us online that it's possible to type in questions during the presentation, and we will address them afterwards. i also want to remind those following us online that it's possible to type in questions during the presentation and we will address them afterwards Today's agenda is the same as always. today's agenda is the same as always I will go through the highlights, and then my colleague Terje Iversen, he will take you through the financial results. i will go through the highlights and then my colleague terje iversen he will take you through the financial results I will conclude this presentation with an operational review and a market update and prospects going forward. i will conclude this presentation with an operational review and a market update and prospects going forward If we then turn to the highlights, I'm first and foremost extremely satisfied to see that we have completed another quarter without any significant incidents in our fleet. if we then turn to the highlights i'm first and foremost extremely satisfied to see that we have completed another quarter without any significant incidents in our fleet We also, in my opinion, delivered very resilient results in a challenging market, first and foremost because of the political turmoil that we all observe, and also due to the unresolved trade negotiations that are still ongoing. I will come back to that later. On top of that, the summer season is normally a more quiet season for chemical tankers. Despite all those negative factors, we still managed to deliver a $6 million increase in our tank charter earnings. In the second quarter, we earned $174 million, and this compares to $168 million in the first quarter. Our tank charter earnings per day was $30,306, and this is up from $29,556 in the previous quarter. We also saw an increase in our EBIT, $59 million, compared to $54 million in the previous quarter. We also, in my opinion, delivered very resilient results in a challenging market, first and foremost because of the political turmoil that we all observe, and also due to the unresolved trade negotiations that are still ongoing. we also in my opinion delivered very resilient results in a challenging market first and foremost because of the political turmoil that we all observe and also due to the unresolved trade negotiations that are still ongoing I will come back to that later. i will come back to that later On top of that, the summer season is normally a more quiet season for chemical tankers. on top of that the summer season is normally a more quiet season for chemical tankers Despite all those negative factors, we still managed to deliver a $6 million increase in our tank charter earnings. despite all those negative factors we still managed to deliver a $6 million increase in our tank charter earnings In the second quarter, we earned $174 million, and this compares to $168 million in the first quarter. in the second quarter we earned $174 million and this compares to $168 million in the first quarter Our tank charter earnings per day was $30,306, and this is up from $29,556 in the previous quarter. our tank charter earnings per day was $30,306 and this is up from $29,556 in the previous quarter We also saw an increase in our EBIT, $59 million, compared to $54 million in the previous quarter. we also saw an increase in our ebit, $59 million compared to $54 million in the previous quarter Bottom line, we delivered net results of $40 million, and adjusted for one-offs, it's $42 million, and this compares to $33 million in the first quarter. We also saw a net contribution from our terminal division of $1.9 million, and this compares to $2.9 million in the previous quarter. The reduction is in full due to one-offs on corporate level for the terminal side. I'm also extremely pleased to report another reduction in our carbon intensity. This is the first time that Odfjell is reporting an AER (annual efficiency ratio) below 7. We are now at 6.8. I also have to add that the summer season is normally the best quarter when we are measuring carbon intensity, simply because we see much more calm weather during the summer months. Bottom line, we delivered net results of $40 million, and adjusted for one-offs, it's $42 million, and this compares to $33 million in the first quarter. bottom line we delivered net results of $40 million and adjusted for one-offs it's $42 million and this compares to $33 million in the first quarter We also saw a net contribution from our terminal division of $1.9 million, and this compares to $2.9 million in the previous quarter. we also saw a net contribution from our terminal division of $1.9 million and this compares to $2.9 million in the previous quarter The reduction is in full due to one-offs on corporate level for the terminal side. the reduction is in full due to one-offs on corporate level for the terminal side I'm also extremely pleased to report another reduction in our carbon intensity. i'm also extremely pleased to report another reduction in our carbon intensity This is the first time that Odfjell is reporting an AER (annual efficiency ratio) below 7. this is the first time that odfjell is reporting an aer (annual efficiency ratio) below 7 We are now at 6.8. we are now at 6.8 I also have to add that the summer season is normally the best quarter when we are measuring carbon intensity, simply because we see much more calm weather during the summer months. i also have to add that the summer season is normally the best quarter when we are measuring carbon intensity simply because we see much more calm weather during the summer months Finally, the board also approved a dividend of $0.48 per share, and this is in line with our established policy of half-yearly distributions of net result adjusted for one-off items. That concludes my quick introduction, and I give the word to Terje. Finally, the board also approved a dividend of $0.48 per share, and this is in line with our established policy of half-yearly distributions of net result adjusted for one-off items. finally the board also approved a dividend of $0.48 per share and this is in line with our established policy of half-yearly distributions of net result adjusted for one-off items That concludes my quick introduction, and I give the word to Terje. that concludes my quick introduction and i give the word to terje

Speaker 3: Thank you, Harald, and good morning to all of you. I will, as usual, start with the income statement for this quarter. As Harald also mentioned, the tank charter earnings this quarter ended at $174 million, $7 million up compared to the first quarter. The main reason for the increase in the tank charter was that we had increased volumes, and we also had more commercial days in the second quarter compared to the first quarter. Commercial revenue days increased by 77, and we also added two tank charter vessels on short-term tank charter this quarter. [OpEx] increased from $380 million to $423 million, mainly due to increased docking activity in the quarter. We also had one short-term tank charter vessel being out of operations because it was involved in a collision at the start of the quarter. Tank charter expenses ended at $4.1 million, quite comparable to the preceding quarter. Thank you, Harald, and good morning to all of you. thank you harald and good morning to all of you I will, as usual, start with the income statement for this quarter. i will as usual start with the income statement for this quarter As Harald also mentioned, the tank charter earnings this quarter ended at $174 million, $7 million up compared to the first quarter. as harald also mentioned the tank charter earnings this quarter ended at $174 million $7 million up compared to the first quarter The main reason for the increase in the tank charter was that we had increased volumes, and we also had more commercial days in the second quarter compared to the first quarter. the main reason for the increase in the tank charter was that we had increased volumes and we also had more commercial days in the second quarter compared to the first quarter Commercial revenue days increased by 77, and we also added two tank charter vessels on short-term tank charter this quarter. [OpEx] increased from $380 million to $423 million, mainly due to increased docking activity in the quarter. commercial revenue days increased by 77 and we also added two tank charter vessels on short-term tank charter this quarter [opex] increased from $380 million to $423 million mainly due to increased docking activity in the quarter We also had one short-term tank charter vessel being out of operations because it was involved in a collision at the start of the quarter. we also had one short-term tank charter vessel being out of operations because it was involved in a collision at the start of the quarter Tank charter expenses ended at $4.1 million, quite comparable to the preceding quarter. tank charter expenses ended at $4.1 million quite comparable to the preceding quarter Also, operating expenses $52.9 million, very much in line with the previous quarters. We saw that G&A slightly down compared to the second quarter, ended at $20.6 million, a bit lower than normal this quarter because we have the effect from holiday payments, normally reducing the G&A in the second quarter, but we also had increased legal fees in this quarter. We ended very much in line with the previous quarter in total. After G&A, we then delivered an EBITDA of $98.4 million compared to $93.1 million in the second quarter. Depreciation and amortization very much the same level as the previous quarter, leading to an EBIT of $58.6 million compared to $54.4 million. Net interest expenses decreased from $19.1 million to $16.4 million. Part of the reason is that we also expensed amortized financing cost in the second quarter of $2.1 million. Also, operating expenses $52.9 million, very much in line with the previous quarters. also operating expenses $52.9 million very much in line with the previous quarters We saw that G&A slightly down compared to the second quarter, ended at $20.6 million, a bit lower than normal this quarter because we have the effect from holiday payments, normally reducing the G&A in the second quarter, but we also had increased legal fees in this quarter. we saw that g&a slightly down compared to the second quarter ended at $20.6 million a bit lower than normal this quarter because we have the effect from holiday payments normally reducing the g&a in the second quarter but we also had increased legal fees in this quarter We ended very much in line with the previous quarter in total. we ended very much in line with the previous quarter in total After G&A, we then delivered an EBITDA of $98.4 million compared to $93.1 million in the second quarter. after g&a we then delivered an ebitda of $98.4 million compared to $93.1 million in the second quarter Depreciation and amortization very much the same level as the previous quarter, leading to an EBIT of $58.6 million compared to $54.4 million. depreciation and amortization very much the same level as the previous quarter leading to an ebit of $58.6 million compared to $54.4 million Net interest expenses decreased from $19.1 million to $16.4 million. net interest expenses decreased from $19.1 million to $16.4 million Part of the reason is that we also expensed amortized financing cost in the second quarter of $2.1 million. part of the reason is that we also expensed amortized financing cost in the second quarter of $2.1 million The decrease is not as large as it appears, but even though we are seeing that net interest expenses are coming down because we are reducing our debt, and also slightly lower SOFR this quarter, and also better priced financing in total for our balance sheet. After all the financial items being capital loss this quarter, we ended with a net result of $40.1 million, up from $34.4 million in the second quarter, leading to earnings per share of $0.51 this quarter. Looking at the tank charter compared to our cash per given that we measure each quarter, we saw that tank charter earnings ended per day at $33,306 in the second quarter, up from $29,556 in the previous quarter. The decrease is not as large as it appears, but even though we are seeing that net interest expenses are coming down because we are reducing our debt, and also slightly lower SOFR this quarter, and also better priced financing in total for our balance sheet. the decrease is not as large as it appears but even though we are seeing that net interest expenses are coming down because we are reducing our debt and also slightly lower sofr this quarter and also better priced financing in total for our balance sheet After all the financial items being capital loss this quarter, we ended with a net result of $40.1 million, up from $34.4 million in the second quarter, leading to earnings per share of $0.51 this quarter. after all the financial items being capital loss this quarter we ended with a net result of $40.1 million up from $34.4 million in the second quarter leading to earnings per share of $0.51 this quarter Looking at the tank charter compared to our cash per given that we measure each quarter, we saw that tank charter earnings ended per day at $33,306 in the second quarter, up from $29,556 in the previous quarter. looking at the tank charter compared to our cash per given that we measure each quarter we saw that tank charter earnings ended per day at $33,306 in the second quarter up from $29,556 in the previous quarter Cash per given per day was $23,791, slightly improved since the first quarter, bringing the 12 months rolling average to $23,578, well below the term tank charter earnings that we are generating on our vessels. As you can see, we have been very much cash positive since the fourth quarter 2021 when it comes to comparing tank charter earnings per day with the cash per given for our vessels. Going forward, we expect the cash per given to remain at these levels, and the same goes with the P&L breakeven going forward. Looking at the balance sheets, the main items here are that we took delivery of two vessels, Bow Precision and Bow Performer, both vessels that we had on operational or tank charter lease before we acquired them according to purchase options that we had in the agreements. Cash per given per day was $23,791, slightly improved since the first quarter, bringing the 12 months rolling average to $23,578, well below the term tank charter earnings that we are generating on our vessels. cash per given per day was $23,791 slightly improved since the first quarter bringing the 12 months rolling average to $23,578 well below the term tank charter earnings that we are generating on our vessels As you can see, we have been very much cash positive since the fourth quarter 2021 when it comes to comparing tank charter earnings per day with the cash per given for our vessels. as you can see we have been very much cash positive since the fourth quarter 2021 when it comes to comparing tank charter earnings per day with the cash per given for our vessels Going forward, we expect the cash per given to remain at these levels, and the same goes with the P&L breakeven going forward. going forward we expect the cash per given to remain at these levels and the same goes with the p&l breakeven going forward Looking at the balance sheets, the main items here are that we took delivery of two vessels, Bow Precision and Bow Performer, both vessels that we had on operational or tank charter lease before we acquired them according to purchase options that we had in the agreements. looking at the balance sheets the main items here are that we took delivery of two vessels bow precision and bow performer both vessels that we had on operational or tank charter lease before we acquired them according to purchase options that we had in the agreements Ships and new building contracts increased to $1.3 billion in this quarter. We see that the right of use assets decreased because these were included as right of use assets with the tank charter agreements and the bare boat agreements that we had before we exercised the options. Cash and cash equivalent increased to $131 million, or if you include underwritten loan facilities, we are at a total available liquidity of $305 million. That includes the effect from the loan that we issued, the bond loan that we issued in May this year of $1 billion. We used all that proceeds to repay our revolving credit facilities. We are not increasing the cash at hand, and we are not increasing the debt, but we are increasing available liquidity in case we should need that for various purposes. Ships and new building contracts increased to $1.3 billion in this quarter. ships and new building contracts increased to $1.3 billion in this quarter We see that the right of use assets decreased because these were included as right of use assets with the tank charter agreements and the bare boat agreements that we had before we exercised the options. we see that the right of use assets decreased because these were included as right of use assets with the tank charter agreements and the bare boat agreements that we had before we exercised the options Cash and cash equivalent increased to $131 million, or if you include underwritten loan facilities, we are at a total available liquidity of $305 million . cash and cash equivalent increased to $131 million or if you include underwritten loan facilities we are at a total available liquidity of $305 million That includes the effect from the loan that we issued, the bond loan that we issued in May this year of $1 billion . that includes the effect from the loan that we issued the bond loan that we issued in may this year of $1 billion We used all that proceeds to repay our revolving credit facilities. we used all that proceeds to repay our revolving credit facilities We are not increasing the cash at hand, and we are not increasing the debt, but we are increasing available liquidity in case we should need that for various purposes. we are not increasing the cash at hand and we are not increasing the debt but we are increasing available liquidity in case we should need that for various purposes We see that current receivables were reduced this quarter, reducing our working capital and increasing our operational cash flow. Total equity increased with $49 million compared to our being our total comprehensive income for this quarter, and we have now equity percentage around 46% at the total for the group. We also see that non-current interest-bearing debt decreased, the main reason being that we are reducing our debt, as mentioned, but also that two loans were reclassified because they're maturing first half next year and now included as current portion of interest-bearing debts per end of the first half. Looking at the cash flow, as I said, we improved the working capital quite substantially this quarter, leading to operating cash flow this quarter of $109 million, increase of $49 million compared to the first quarter. We see that current receivables were reduced this quarter, reducing our working capital and increasing our operational cash flow. we see that current receivables were reduced this quarter reducing our working capital and increasing our operational cash flow Total equity increased with $49 million compared to our being our total comprehensive income for this quarter, and we have now equity percentage around 46% at the total for the group. total equity increased with $49 million compared to our being our total comprehensive income for this quarter and we have now equity percentage around 46% at the total for the group We also see that non-current interest-bearing debt decreased, the main reason being that we are reducing our debt, as mentioned, but also that two loans were reclassified because they're maturing first half next year and now included as current portion of interest-bearing debts per end of the first half. we also see that non-current interest-bearing debt decreased the main reason being that we are reducing our debt as mentioned but also that two loans were reclassified because they're maturing first half next year and now included as current portion of interest-bearing debts per end of the first half Looking at the cash flow, as I said, we improved the working capital quite substantially this quarter, leading to operating cash flow this quarter of $109 million , increase of $49 million compared to the first quarter. looking at the cash flow as i said we improved the working capital quite substantially this quarter leading to operating cash flow this quarter of $109 million increase of $49 million compared to the first quarter The main reason being, of course, we had improved results, but mostly due to the improvement in our working capital. Actually, I think this $109 million is the second best quarter when it comes to operational cash flow for Odfjell in history, so we're very satisfied with the cash flow we saw this quarter. On the investment side, we acquired Bow Performer in April. Looking at the cash flow for investment activities, that was -$54.6 million. On the debt side, we did repay loan amounts under revolving credit facilities, and we took this new bond loan. In total, we had negative cash flow from financing of $10 million this quarter. In total, we then had an improvement in cash and cash equivalents of $44.7 million in the second quarter. The main reason being, of course, we had improved results, but mostly due to the improvement in our working capital. the main reason being of course we had improved results but mostly due to the improvement in our working capital Actually, I think this $109 million is the second best quarter when it comes to operational cash flow for Odfjell in history, so we're very satisfied with the cash flow we saw this quarter. actually i think this $109 million is the second best quarter when it comes to operational cash flow for odfjell in history so we're very satisfied with the cash flow we saw this quarter On the investment side, we acquired Bow Performer in April. on the investment side we acquired bow performer in april Looking at the cash flow for investment activities, that was - $54.6 million. looking at the cash flow for investment activities that was - $54.6 million On the debt side, we did repay loan amounts under revolving credit facilities, and we took this new bond loan. on the debt side we did repay loan amounts under revolving credit facilities and we took this new bond loan In total, we had negative cash flow from financing of $10 million this quarter. in total we had negative cash flow from financing of $10 million this quarter In total, we then had an improvement in cash and cash equivalents of $44.7 million in the second quarter. in total we then had an improvement in cash and cash equivalents of $44.7 million in the second quarter Looking at the more long-term free cash flow generation from our business, as I said, we had a strong operating cash flow in this quarter due to the improvement in working capital and improved results. We have also included here cash flow from investments this quarter, which was done by acquisition of Bow Performer proposition. Bow Precision actually was refinanced in the first quarter when we exercised the purchase option, so we drew a new loan for that vessel in the second quarter. The actual delivery took place only 1st of April, so that is included here in the second quarter as investments. Free cash flow this quarter was based on operating cash flow of $109 million minus investments of $98 million, ending at $12 million. Looking at the more long-term free cash flow generation from our business, as I said, we had a strong operating cash flow in this quarter due to the improvement in working capital and improved results. looking at the more long-term free cash flow generation from our business as i said we had a strong operating cash flow in this quarter due to the improvement in working capital and improved results We have also included here cash flow from investments this quarter, which was done by acquisition of Bow Performer proposition. Bow Precision actually was refinanced in the first quarter when we exercised the purchase option, so we drew a new loan for that vessel in the second quarter. we have also included here cash flow from investments this quarter which was done by acquisition of bow performer proposition. bow precision actually was refinanced in the first quarter when we exercised the purchase option so we drew a new loan for that vessel in the second quarter The actual delivery took place only 1st of April , so that is included here in the second quarter as investments. the actual delivery took place only 1st of april so that is included here in the second quarter as investments Free cash flow this quarter was based on operating cash flow of $109 million minus investments of $98 million, ending at $12 million. free cash flow this quarter was based on operating cash flow of $109 million minus investments of $98 million ending at $12 million However, looking at the more long term, we see that 12 months rolling free cash flow is now at around $60 million, and we adjust that for repayments related to right of use assets. We are at $49 million on a 12 months rolling basis this quarter. On the debt side, I mentioned that we issued a new bond. Per end of the second quarter, we have a debt of $742 million. Interest-bearing debt, no significant changes expected for the remainder of the year. As you can see on the bottom of this slide, we are expecting a slight decrease in interest-bearing debt in the coming two years. However, looking at the more long term, we see that 12 months rolling free cash flow is now at around $60 million, and we adjust that for repayments related to right of use assets. however looking at the more long term we see that 12 months rolling free cash flow is now at around $60 million and we adjust that for repayments related to right of use assets We are at $49 million on a 12 months rolling basis this quarter. we are at $49 million on a 12 months rolling basis this quarter On the debt side, I mentioned that we issued a new bond. on the debt side i mentioned that we issued a new bond Per end of the second quarter, we have a debt of $742 million. per end of the second quarter we have a debt of $742 million Interest-bearing debt, no significant changes expected for the remainder of the year. interest-bearing debt no significant changes expected for the remainder of the year As you can see on the bottom of this slide, we are expecting a slight decrease in interest-bearing debt in the coming two years. as you can see on the bottom of this slide we are expecting a slight decrease in interest-bearing debt in the coming two years In June, or I think it was in May actually, we issued this new bond of NOK 1 billion, swapped that to $97 million, and that was issued at the price of a margin of 275 basis points above NIBOR, which is the lowest price shipping bond since 2014. We're very satisfied with the timing and the pricing that we achieved on that issue. As I said, we have only used the proceeds to repay loan amounts on our revolving credit facility, not increasing the debt on our balance sheet. The total all-in cost related to that is 2.5% per year to have that facility or cash available in case we should need that for investments or other purposes. During the second quarter, we added one vessel to the $242 million bank facility that we managed to have in place in the first quarter. In June, or I think it was in May actually, we issued this new bond of NOK 1 billion, swapped that to $97 million, and that was issued at the price of a margin of 275 basis points above NIBOR, which is the lowest price shipping bond since 2014. in june or i think it was in may actually we issued this new bond of nok 1 billion swapped that to $97 million and that was issued at the price of a margin of 275 basis points above nibor which is the lowest price shipping bond since 2014 We're very satisfied with the timing and the pricing that we achieved on that issue. we're very satisfied with the timing and the pricing that we achieved on that issue As I said, we have only used the proceeds to repay loan amounts on our revolving credit facility, not increasing the debt on our balance sheet. as i said we have only used the proceeds to repay loan amounts on our revolving credit facility not increasing the debt on our balance sheet The total all-in cost related to that is 2.5% per year to have that facility or cash available in case we should need that for investments or other purposes. the total all-in cost related to that is 2.5% per year to have that facility or cash available in case we should need that for investments or other purposes During the second quarter, we added one vessel to the $242 million bank facility that we managed to have in place in the first quarter. during the second quarter we added one vessel to the $242 million bank facility that we managed to have in place in the first quarter Also, in July after the quarter, we completed the purchase of one additional vessel that we had on operational lease, both Gemini, which also then has been included in the same loan facility. Going forward, looking at CapEx and tank charter commitments, CapEx being new buildings and also declared purchase options stands now at $158 million in the coming years. That includes two vessels, this one Bow Gemini that we acquired already in July this year, and we also exercised purchase option for Bow Hercules, which we will take delivery of in the first quarter 2026. That summarizes to $71 million. I have to add that these purchase options are very favorable comparing to the market values. That goes to also Bow Performer and Bow Precision that we have taken delivery of in the past few months. We have two new buildings that are being delivered in 2026 and 2027. Also, in July after the quarter, we completed the purchase of one additional vessel that we had on operational lease, both Gemini, which also then has been included in the same loan facility. also in july after the quarter we completed the purchase of one additional vessel that we had on operational lease both gemini which also then has been included in the same loan facility Going forward, looking at CapEx and tank charter commitments, CapEx being new buildings and also declared purchase options stands now at $158 million in the coming years. going forward looking at capex and tank charter commitments capex being new buildings and also declared purchase options stands now at $158 million in the coming years That includes two vessels, this one Bow Gemini that we acquired already in July this year, and we also exercised purchase option for Bow Hercules, which we will take delivery of in the first quarter 2026. that includes two vessels this one bow gemini that we acquired already in july this year and we also exercised purchase option for bow hercules which we will take delivery of in the first quarter 2026 That summarizes to $71 million. that summarizes to $71 million I have to add that these purchase options are very favorable comparing to the market values. i have to add that these purchase options are very favorable comparing to the market values That goes to also Bow Performer and Bow Precision that we have taken delivery of in the past few months. that goes to also bow performer and bow precision that we have taken delivery of in the past few months We have two new buildings that are being delivered in 2026 and 2027. we have two new buildings that are being delivered in 2026 and 2027 In total, $158 million in CapEx commitments. Looking at the tank charter commitments, no new news in this. We have around $1.1 billion in tank charter commitments for vessels to be delivered in the coming years from 2026 to 2028. These are 18 vessels that are on long-term tank charters, eight years per vessel that we are taking commitments to. The total commitments are, as I said, $1.1 billion. When these are added to the balance sheet, that will be a smaller amount because we are then excluding the OpEx element of these commitments. It could be that other tank charters that we have on vessels that we have on tank charters today will be redelivered. The total amount of the debt will maybe not increase with this amount. These vessels together with our new buildings account for 14% of the current order book within our core segment. In total, $158 million in CapEx commitments. in total $158 million in capex commitments Looking at the tank charter commitments, no new news in this. looking at the tank charter commitments no new news in this We have around $1.1 billion in tank charter commitments for vessels to be delivered in the coming years from 2026 to 2028. we have around $1.1 billion in tank charter commitments for vessels to be delivered in the coming years from 2026 to 2028 These are 18 vessels that are on long-term tank charters, eight years per vessel that we are taking commitments to. these are 18 vessels that are on long-term tank charters eight years per vessel that we are taking commitments to The total commitments are, as I said, $1.1 billion. the total commitments are as i said $1.1 billion When these are added to the balance sheet, that will be a smaller amount because we are then excluding the OpEx element of these commitments. when these are added to the balance sheet that will be a smaller amount because we are then excluding the opex element of these commitments It could be that other tank charters that we have on vessels that we have on tank charters today will be redelivered. it could be that other tank charters that we have on vessels that we have on tank charters today will be redelivered The total amount of the debt will maybe not increase with this amount. the total amount of the debt will maybe not increase with this amount These vessels together with our new buildings account for 14% of the current order book within our core segment. these vessels together with our new buildings account for 14% of the current order book within our core segment I can also add that five of these vessels that we have on tank charters that are going to be delivered have a fixed tank charter element and also a variable tank charter element depending on the earnings of these vessels. What is included there is the guaranteed and fixed element of these tank charter agreements. I think that leaves the floor to you again, Harald. Thank you. I can also add that five of these vessels that we have on tank charters that are going to be delivered have a fixed tank charter element and also a variable tank charter element depending on the earnings of these vessels. i can also add that five of these vessels that we have on tank charters that are going to be delivered have a fixed tank charter element and also a variable tank charter element depending on the earnings of these vessels What is included there is the guaranteed and fixed element of these tank charter agreements. what is included there is the guaranteed and fixed element of these tank charter agreements I think that leaves the floor to you again, Harald. i think that leaves the floor to you again harald Thank you. thank you

Speaker 2: By that, I will continue with an operational review. I start with our contract coverage. On the left-hand side of this slide, you will see that we had a slight reduction in our contract coverage, meaning that 51% of the cargo that we carried was contract cargo, while the remaining 49% were spot cargoes. If you, at the same time, look at the graph to the right, you will see that we have a quite substantial increase in volumes during the quarter. We are back to 2024 levels of 3.4. That means that we haven't seen a dramatic reduction in contract volumes, but what we've seen is an increase in spot cargoes. For that reason, we have seen a reduction in the percentage. There is no dramacy in those figures. By that, I will continue with an operational review. by that i will continue with an operational review I start with our contract coverage. i start with our contract coverage On the left-hand side of this slide, you will see that we had a slight reduction in our contract coverage, meaning that 51% of the cargo that we carried was contract cargo, while the remaining 49% were spot cargoes. on the left-hand side of this slide you will see that we had a slight reduction in our contract coverage meaning that 51% of the cargo that we carried was contract cargo while the remaining 49% were spot cargoes If you, at the same time, look at the graph to the right, you will see that we have a quite substantial increase in volumes during the quarter. if you at the same time look at the graph to the right you will see that we have a quite substantial increase in volumes during the quarter We are back to 2024 levels of 3.4. we are back to 2024 levels of 3.4 That means that we haven't seen a dramatic reduction in contract volumes, but what we've seen is an increase in spot cargoes. that means that we haven't seen a dramatic reduction in contract volumes but what we've seen is an increase in spot cargoes For that reason, we have seen a reduction in the percentage. for that reason we have seen a reduction in the percentage There is no dramacy in those figures. there is no dramacy in those figures Actually, I will once again say that I'm impressed by our team and the fact that they've managed to increase the total volumes in what we could characterize as a difficult quarter. That is also reflected in the graph to the left, where we see that we saw an increase in average earnings of 1.2% within the Odfjell fleet. At the same time, we saw a decrease of 3.8% in the so-called Clarksons spot index. If we look at the various cargo types that we are carrying, we saw a slight decrease when it comes to specialty chemicals. We saw relatively stable volumes on the commodity chemicals, and those are the chemicals that are typically transported in large volumes. We also saw a slight growth in veg oils. Actually, I will once again say that I'm impressed by our team and the fact that they've managed to increase the total volumes in what we could characterize as a difficult quarter. actually i will once again say that i'm impressed by our team and the fact that they've managed to increase the total volumes in what we could characterize as a difficult quarter That is also reflected in the graph to the left, where we see that we saw an increase in average earnings of 1.2% within the Odfjell fleet. that is also reflected in the graph to the left where we see that we saw an increase in average earnings of 1.2% within the odfjell fleet At the same time, we saw a decrease of 3.8% in the so-called Clarksons spot index. at the same time we saw a decrease of 3.8% in the so-called clarksons spot index If we look at the various cargo types that we are carrying, we saw a slight decrease when it comes to specialty chemicals. if we look at the various cargo types that we are carrying we saw a slight decrease when it comes to specialty chemicals We saw relatively stable volumes on the commodity chemicals, and those are the chemicals that are typically transported in large volumes. we saw relatively stable volumes on the commodity chemicals and those are the chemicals that are typically transported in large volumes We also saw a slight growth in veg oils. we also saw a slight growth in veg oils Those are cargoes that we normally do not carry because the freight rates are lower than what you see for commodity chemicals and specialty chemicals. The same goes for clean CPP cargoes, where we also saw an increase in Odfjell volumes. That is also outside our core business. As a consequence of reduced specialty chemicals, we focused on veg oils and CPP. By that, we managed to increase our earnings and also our results and volumes. Turning to sustainability, as mentioned, we are this quarter reporting an AER, the annual efficiency ratio, which is the average carbon intensity figure for our fleet of 6.8. That is a new record low for Odfjell. It's the first time that we are reporting this figure below seven. There are many reasons for that. One reason is the continuous work that we do to retrofit energy efficiency devices. Those are cargoes that we normally do not carry because the freight rates are lower than what you see for commodity chemicals and specialty chemicals. those are cargoes that we normally do not carry because the freight rates are lower than what you see for commodity chemicals and specialty chemicals The same goes for clean CPP cargoes, where we also saw an increase in Odfjell volumes. the same goes for clean cpp cargoes where we also saw an increase in odfjell volumes That is also outside our core business. that is also outside our core business As a consequence of reduced specialty chemicals, we focused on veg oils and CPP. as a consequence of reduced specialty chemicals we focused on veg oils and cpp By that, we managed to increase our earnings and also our results and volumes. by that we managed to increase our earnings and also our results and volumes Turning to sustainability, as mentioned, we are this quarter reporting an AER, the annual efficiency ratio, which is the average carbon intensity figure for our fleet of 6.8. turning to sustainability as mentioned we are this quarter reporting an aer the annual efficiency ratio which is the average carbon intensity figure for our fleet of 6.8 That is a new record low for Odfjell. that is a new record low for odfjell It's the first time that we are reporting this figure below seven. it's the first time that we are reporting this figure below seven There are many reasons for that. there are many reasons for that One reason is the continuous work that we do to retrofit energy efficiency devices. one reason is the continuous work that we do to retrofit energy efficiency devices The sails are also starting to take effect. We installed the first set of sails on Bow Olympus during the first quarter. The immediate results were extremely encouraging. We saw savings up to 40%. On the first voyage, we saw average savings of 20%. Since then, we have had 48 sailing days. We all know how the European summer has been; it's been calm and sunny weather, so we have had limited utilization of those sails. Still, we are at the average expected for this type of sails, which is between 8% and 10%. We are now preparing the vessel, she's right now in Houston, and she's preparing for a transpacific voyage. That is more or less one month in open sea in September. We are both excited and curious about the results that we will experience during that particular voyage. The sails are also starting to take effect. the sails are also starting to take effect We installed the first set of sails on Bow Olympus during the first quarter. we installed the first set of sails on bow olympus during the first quarter The immediate results were extremely encouraging. the immediate results were extremely encouraging We saw savings up to 40%. we saw savings up to 40% On the first voyage, we saw average savings of 20%. on the first voyage we saw average savings of 20% Since then, we have had 48 sailing days. since then we have had 48 sailing days We all know how the European summer has been; it's been calm and sunny weather, so we have had limited utilization of those sails. we all know how the european summer has been it's been calm and sunny weather so we have had limited utilization of those sails Still, we are at the average expected for this type of sails, which is between 8% and 10%. still we are at the average expected for this type of sails which is between 8% and 10% We are now preparing the vessel, she's right now in Houston, and she's preparing for a transpacific voyage. we are now preparing the vessel she's right now in houston and she's preparing for a transpacific voyage That is more or less one month in open sea in September. that is more or less one month in open sea in september We are both excited and curious about the results that we will experience during that particular voyage. we are both excited and curious about the results that we will experience during that particular voyage That is more or less a one-month voyage before she's reaching Yokohama. On top of that, we have already, despite that we don't have a full picture of how those sails are actually working, decided to install sails on two more vessels, two of the new buildings that are presently being constructed in Japan. Those vessels will be delivered, one in 2026 and one in 2027. On the terminal side, we have relatively stable throughput on all our terminals. We have seen a slight decline in Korea, but that is compensated for in the U.S. and Europe. We did see stable results. The challenge is that the figure is being impacted by one-offs at the corporate or holding level. We are extremely happy to see that all the expansion projects that we've conducted on basically all our terminals are now starting to pay off. That is more or less a one-month voyage before she's reaching Yokohama. that is more or less a one-month voyage before she's reaching yokohama On top of that, we have already, despite that we don't have a full picture of how those sails are actually working, decided to install sails on two more vessels, two of the new buildings that are presently being constructed in Japan. on top of that we have already despite that we don't have a full picture of how those sails are actually working decided to install sails on two more vessels two of the new buildings that are presently being constructed in japan Those vessels will be delivered, one in 2026 and one in 2027. those vessels will be delivered one in 2026 and one in 2027 On the terminal side, we have relatively stable throughput on all our terminals. on the terminal side we have relatively stable throughput on all our terminals We have seen a slight decline in Korea, but that is compensated for in the U.S. and Europe. we have seen a slight decline in korea but that is compensated for in the u.s and europe We did see stable results. we did see stable results The challenge is that the figure is being impacted by one-offs at the corporate or holding level. the challenge is that the figure is being impacted by one-offs at the corporate or holding level We are extremely happy to see that all the expansion projects that we've conducted on basically all our terminals are now starting to pay off. we are extremely happy to see that all the expansion projects that we've conducted on basically all our terminals are now starting to pay off We are receiving dividends from Korea, from North Nazi in Antwerp, and also quite substantial dividends from our terminal in Houston. This is a stable business. The outlook for this segment is that we will have stable and similar performance also in the quarter that is coming. When it comes to expansion projects, which is maybe the most cost-efficient that you can do on the terminal side to continue to build on the established infrastructure, we did inaugurate one tank pit in Antwerp this quarter. We are now building another 12,000 cu m of stainless steel tanks. Those will be inaugurated later this year. I'm also happy to see that finally we get some traction in Korea. We are building out the so-called E5 area. We have started with the groundwork, and the first 10 tanks will be in operation late next year. We are receiving dividends from Korea, from North Nazi in Antwerp, and also quite substantial dividends from our terminal in Houston. we are receiving dividends from korea from north nazi in antwerp and also quite substantial dividends from our terminal in houston This is a stable business. this is a stable business The outlook for this segment is that we will have stable and similar performance also in the quarter that is coming. the outlook for this segment is that we will have stable and similar performance also in the quarter that is coming When it comes to expansion projects, which is maybe the most cost-efficient that you can do on the terminal side to continue to build on the established infrastructure, we did inaugurate one tank pit in Antwerp this quarter. when it comes to expansion projects which is maybe the most cost-efficient that you can do on the terminal side to continue to build on the established infrastructure we did inaugurate one tank pit in antwerp this quarter We are now building another 12,000 cu m of stainless steel tanks. we are now building another 12,000 cu m of stainless steel tanks Those will be inaugurated later this year. those will be inaugurated later this year I'm also happy to see that finally we get some traction in Korea. i'm also happy to see that finally we get some traction in korea We are building out the so-called E5 area. we are building out the so-called e5 area We have started with the groundwork, and the first 10 tanks will be in operation late next year. we have started with the groundwork and the first 10 tanks will be in operation late next year Due to the expansion, we are also improving our berth capacity, and we've also decided, therefore, to upgrade one of the two berths that we have in Korea. I would say that we have stable and good development on the terminal side. Then to the market update and prospects, this graph reflects what I've already said. Normally, the summer season is a slow season. People are on vacations. Many of the factories are reducing their activity. The need for the chemicals that we are transporting is seeing a dip during the summer months. This trend has been reinforced this year, partly because of all the geopolitical turmoil that we are all observing, and partly because too many of the trade agreements or tariff agreements between the U.S. and other countries are still unresolved. Due to the expansion, we are also improving our berth capacity, and we've also decided, therefore, to upgrade one of the two berths that we have in Korea. due to the expansion we are also improving our berth capacity and we've also decided therefore to upgrade one of the two berths that we have in korea I would say that we have stable and good development on the terminal side. i would say that we have stable and good development on the terminal side Then to the market update and prospects, this graph reflects what I've already said. then to the market update and prospects this graph reflects what i've already said Normally, the summer season is a slow season. normally the summer season is a slow season People are on vacations. people are on vacations Many of the factories are reducing their activity. many of the factories are reducing their activity The need for the chemicals that we are transporting is seeing a dip during the summer months. the need for the chemicals that we are transporting is seeing a dip during the summer months This trend has been reinforced this year, partly because of all the geopolitical turmoil that we are all observing, and partly because too many of the trade agreements or tariff agreements between the U.S. and other countries are still unresolved. this trend has been reinforced this year partly because of all the geopolitical turmoil that we are all observing and partly because too many of the trade agreements or tariff agreements between the u.s and other countries are still unresolved For that reason, we have seen slightly higher reduction in the spot rates than what we've seen previous years. We are not concerned about this. We think there are logical explanations to it. If we go to the next slide and look at the tariffs, I think what strikes your mind when you see the list of tariffs is that what's outstanding today is basically the BRICS countries. It's Brazil, it's Russia, it's China, it's India, and it's South Africa. Maybe it's more politics into that than real financial issues. What we see is that those agreements that have been concluded are concluded at levels where our customers seem to feel that they are coping with that. The American Chemistry Council estimates that the growth will be slower than they have estimated previously, but we don't observe that there is any panic going on. For that reason, we have seen slightly higher reduction in the spot rates than what we've seen previous years. for that reason we have seen slightly higher reduction in the spot rates than what we've seen previous years We are not concerned about this. we are not concerned about this We think there are logical explanations to it. we think there are logical explanations to it If we go to the next slide and look at the tariffs, I think what strikes your mind when you see the list of tariffs is that what's outstanding today is basically the BRICS countries. if we go to the next slide and look at the tariffs i think what strikes your mind when you see the list of tariffs is that what's outstanding today is basically the brics countries It's Brazil, it's Russia, it's China, it's India, and it's South Africa. it's brazil it's russia it's china it's india and it's south africa Maybe it's more politics into that than real financial issues. maybe it's more politics into that than real financial issues What we see is that those agreements that have been concluded are concluded at levels where our customers seem to feel that they are coping with that. what we see is that those agreements that have been concluded are concluded at levels where our customers seem to feel that they are coping with that The American Chemistry Council estimates that the growth will be slower than they have estimated previously, but we don't observe that there is any panic going on. the american chemistry council estimates that the growth will be slower than they have estimated previously but we don't observe that there is any panic going on There is still a significant surplus in the balance between chemical imports and exports into the U.S. Odfjell has approximately 20% of that market. The expectation for the production in the U.S., which is basically the Texas area, is that we will see a modest increase this year, a modest increase next year, and then it will be back to normal levels. Then to the swing tonnage, those are vessels that are being built so that they can carry both easy chemicals and what they are normally doing, the CPP or petroleum products. That is an important figure for us because it's a disadvantage if those vessels are starting to swing into doing chemicals instead of gasoline and diesel. We have seen during the past few quarters, we have seen an increase of swing tonnage swinging into chemicals. There is still a significant surplus in the balance between chemical imports and exports into the U.S. there is still a significant surplus in the balance between chemical imports and exports into the u.s Odfjell has approximately 20% of that market. odfjell has approximately 20% of that market The expectation for the production in the U.S., which is basically the Texas area, is that we will see a modest increase this year, a modest increase next year, and then it will be back to normal levels. the expectation for the production in the u.s which is basically the texas area is that we will see a modest increase this year a modest increase next year and then it will be back to normal levels Then to the swing tonnage, those are vessels that are being built so that they can carry both easy chemicals and what they are normally doing, the CPP or petroleum products. then to the swing tonnage those are vessels that are being built so that they can carry both easy chemicals and what they are normally doing the cpp or petroleum products That is an important figure for us because it's a disadvantage if those vessels are starting to swing into doing chemicals instead of gasoline and diesel. that is an important figure for us because it's a disadvantage if those vessels are starting to swing into doing chemicals instead of gasoline and diesel We have seen during the past few quarters, we have seen an increase of swing tonnage swinging into chemicals. we have seen during the past few quarters we have seen an increase of swing tonnage swinging into chemicals Now, if you look at the graph to the left, you will see that there has been an upswing in MR rates. I think that will convince and encourage MR owners to swing back into where they belong on the CPP side. We are not concerned about the influx of swing tonnage going forward. If we look at the order book, the most positive news this quarter is that there were absolutely zero new orders for chemical tankers in our segments this quarter. The order book is exactly the same as we reported after the first quarter. If we start with the super segregators, which is basically the bread and butter for companies like Odfjell, we control 40% of that segment. That is a segment where we will see a slight increase in capacity, and that increase is relatively modest. Now, if you look at the graph to the left, you will see that there has been an upswing in MR rates. now if you look at the graph to the left you will see that there has been an upswing in mr rates I think that will convince and encourage MR owners to swing back into where they belong on the CPP side. i think that will convince and encourage mr owners to swing back into where they belong on the cpp side We are not concerned about the influx of swing tonnage going forward. we are not concerned about the influx of swing tonnage going forward If we look at the order book, the most positive news this quarter is that there were absolutely zero new orders for chemical tankers in our segments this quarter. if we look at the order book the most positive news this quarter is that there were absolutely zero new orders for chemical tankers in our segments this quarter The order book is exactly the same as we reported after the first quarter. the order book is exactly the same as we reported after the first quarter If we start with the super segregators, which is basically the bread and butter for companies like Odfjell, we control 40% of that segment. if we start with the super segregators which is basically the bread and butter for companies like odfjell we control 40% of that segment That is a segment where we will see a slight increase in capacity, and that increase is relatively modest. that is a segment where we will see a slight increase in capacity and that increase is relatively modest If we then go to the next segment, which is what we call large stainless steel tankers, those tankers are more or less the same size as the super segregators. The big difference is that they have much fewer tanks. A 33,000 tonne neck inside a large stainless steel segment typically has maybe 20, 24 tanks, while the super segregators are between 40 and 50 tanks. In the large stainless steel segment, we will see a decrease going forward. That segment is getting smaller and smaller every year. If you combine the super segregators and the large segment, in total, those two segments together will see a slight decrease in capacity. That means that where we really see a huge increase is on the medium stainless steel segments. If we then go to the next segment, which is what we call large stainless steel tankers, those tankers are more or less the same size as the super segregators. if we then go to the next segment which is what we call large stainless steel tankers those tankers are more or less the same size as the super segregators The big difference is that they have much fewer tanks. the big difference is that they have much fewer tanks A 33,000 tonne neck inside a large stainless steel segment typically has maybe 20, 24 tanks, while the super segregators are between 40 and 50 tanks. a 33,000 tonne neck inside a large stainless steel segment typically has maybe 20 24 tanks while the super segregators are between 40 and 50 tanks In the large stainless steel segment, we will see a decrease going forward. in the large stainless steel segment we will see a decrease going forward That segment is getting smaller and smaller every year. that segment is getting smaller and smaller every year If you combine the super segregators and the large segment, in total, those two segments together will see a slight decrease in capacity. if you combine the super segregators and the large segment in total those two segments together will see a slight decrease in capacity That means that where we really see a huge increase is on the medium stainless steel segments. that means that where we really see a huge increase is on the medium stainless steel segments The medium stainless steel segment used to be dominated by what they call the J19s, the typical 19,000 or 20,000 tonners being built in Japan. Those ships, there are approximately 350 of them in total. Those vessels are slowly being phased out, and they are being replaced by the more modern J25, which have much more loading capacity, of course. They have the same draft and the same crew, so meaning that they are maybe 25% more efficient than the old J19s. The increase is coming as a consequence of J19s being replaced by J25. Right now, the order book is in total approximately 20% of the sailing fleet, and Odfjell has 14% of that order book, which means that we will see a slight growth in our capacity in the years to come. This is my last slide, just to second last slide, just to summarize what I've said. The medium stainless steel segment used to be dominated by what they call the J19s, the typical 19,000 or 20,000 tonners being built in Japan. the medium stainless steel segment used to be dominated by what they call the j19s the typical 19,000 or 20,000 tonners being built in japan Those ships, there are approximately 350 of them in total. those ships there are approximately 350 of them in total Those vessels are slowly being phased out, and they are being replaced by the more modern J25, which have much more loading capacity, of course. those vessels are slowly being phased out and they are being replaced by the more modern j25 which have much more loading capacity of course They have the same draft and the same crew, so meaning that they are maybe 25% more efficient than the old J19s. they have the same draft and the same crew so meaning that they are maybe 25% more efficient than the old j19s The increase is coming as a consequence of J19s being replaced by J25. the increase is coming as a consequence of j19s being replaced by j25 Right now, the order book is in total approximately 20% of the sailing fleet, and Odfjell has 14% of that order book, which means that we will see a slight growth in our capacity in the years to come. right now the order book is in total approximately 20% of the sailing fleet and odfjell has 14% of that order book which means that we will see a slight growth in our capacity in the years to come This is my last slide, just to second last slide, just to summarize what I've said. this is my last slide just to second last slide just to summarize what i've said We do see that slowly, more and more of those bilateral trade or tariff agreements are falling into place. We have seen that IMF has made a small upgrade on GDP production, and the transportation of liquid chemicals and the world GDP is extremely closely connected together. It's not possible to imagine one single industrialized process where the chemicals that we are transporting are not involved. Every process that you can think of, whether it's car industry, agriculture, medicine, food, they all need the chemicals that we are transporting. For that reason, this GDP figure is extremely important for our segment. On the geopolitical side, we continue to see challenges. I think the world has more adapted to sailing around Suez and the Red Sea. We expect to continue to do that for the foreseeable future. We do see that slowly, more and more of those bilateral trade or tariff agreements are falling into place. we do see that slowly more and more of those bilateral trade or tariff agreements are falling into place We have seen that IMF has made a small upgrade on GDP production, and the transportation of liquid chemicals and the world GDP is extremely closely connected together. we have seen that imf has made a small upgrade on gdp production and the transportation of liquid chemicals and the world gdp is extremely closely connected together It's not possible to imagine one single industrialized process where the chemicals that we are transporting are not involved. it's not possible to imagine one single industrialized process where the chemicals that we are transporting are not involved Every process that you can think of, whether it's car industry, agriculture, medicine, food, they all need the chemicals that we are transporting. every process that you can think of whether it's car industry agriculture medicine food they all need the chemicals that we are transporting For that reason, this GDP figure is extremely important for our segment. for that reason this gdp figure is extremely important for our segment On the geopolitical side, we continue to see challenges. on the geopolitical side we continue to see challenges I think the world has more adapted to sailing around Suez and the Red Sea. i think the world has more adapted to sailing around suez and the red sea We expect to continue to do that for the foreseeable future. we expect to continue to do that for the foreseeable future We are concerned about sailing through into the Arabian Gulf through the Strait of Hormuz. Now it seems that that situation has come under control, and we are today sailing as normal in and out of the Arabian Gulf. We do expect that the chemicals production and the need for transport will be more or less stable this year and also next year. There is kind of a possibility for an upswing due to the increased production of oil and the increased refinery capacity in China. Swing tonnage, I've already mentioned. We expect that those vessels to either be stable or slightly decrease. By that, we foresee a stable outlook for the trade. We see a slight uptick on the GDP. We see that tariffs are slowly coming in for landing. We don't see any hiccups when it comes to the new buildings. We are concerned about sailing through into the Arabian Gulf through the Strait of Hormuz. we are concerned about sailing through into the arabian gulf through the strait of hormuz Now it seems that that situation has come under control, and we are today sailing as normal in and out of the Arabian Gulf. now it seems that that situation has come under control and we are today sailing as normal in and out of the arabian gulf We do expect that the chemicals production and the need for transport will be more or less stable this year and also next year. we do expect that the chemicals production and the need for transport will be more or less stable this year and also next year There is kind of a possibility for an upswing due to the increased production of oil and the increased refinery capacity in China. there is kind of a possibility for an upswing due to the increased production of oil and the increased refinery capacity in china Swing tonnage, I've already mentioned. swing tonnage i've already mentioned We expect that those vessels to either be stable or slightly decrease. we expect that those vessels to either be stable or slightly decrease By that, we foresee a stable outlook for the trade. by that we foresee a stable outlook for the trade We see a slight uptick on the GDP. we see a slight uptick on the gdp We see that tariffs are slowly coming in for landing. we see that tariffs are slowly coming in for landing We don't see any hiccups when it comes to the new buildings. we don't see any hiccups when it comes to the new buildings We also feel that we have a good overview of the swing tonnage. To conclude this presentation, then we did deliver a result that we have every reason to be proud of. We managed to increase our earnings and our results in a declining market. We saw a slight increase in volumes. This is basically due to the fact that we swung into CPP and vag oils. We did not renew any significant contracts during the quarter. Those contracts that were renewed were renewed more or less at expiring terms. On the terminal side, we had stable results in the second quarter. This is in line with the previous quarter. As mentioned, we did have some one-offs at corporate level that reduced our net results. The outlook, we have seen some reduced activity in line with the slower summer season. We also feel that we have a good overview of the swing tonnage. we also feel that we have a good overview of the swing tonnage To conclude this presentation, then we did deliver a result that we have every reason to be proud of. to conclude this presentation then we did deliver a result that we have every reason to be proud of We managed to increase our earnings and our results in a declining market. we managed to increase our earnings and our results in a declining market We saw a slight increase in volumes. we saw a slight increase in volumes This is basically due to the fact that we swung into CPP and vag oils. this is basically due to the fact that we swung into cpp and vag oils We did not renew any significant contracts during the quarter. we did not renew any significant contracts during the quarter Those contracts that were renewed were renewed more or less at expiring terms. those contracts that were renewed were renewed more or less at expiring terms On the terminal side, we had stable results in the second quarter. on the terminal side we had stable results in the second quarter This is in line with the previous quarter. this is in line with the previous quarter As mentioned, we did have some one-offs at corporate level that reduced our net results. as mentioned we did have some one-offs at corporate level that reduced our net results The outlook, we have seen some reduced activity in line with the slower summer season. the outlook we have seen some reduced activity in line with the slower summer season We do think that increased production of oil will have a positive effect. We do, as mentioned, expect the swing tonnage to at least not increase. Based on that, we expect the third quarter to be in line with or maybe slightly below the second quarter results. That, ladies and gentlemen, concludes our presentation, and we are open for questions. Have you received anything, Nils? We do think that increased production of oil will have a positive effect. we do think that increased production of oil will have a positive effect We do, as mentioned, expect the swing tonnage to at least not increase. we do as mentioned expect the swing tonnage to at least not increase Based on that, we expect the third quarter to be in line with or maybe slightly below the second quarter results. based on that we expect the third quarter to be in line with or maybe slightly below the second quarter results That, ladies and gentlemen, concludes our presentation, and we are open for questions. that ladies and gentlemen concludes our presentation and we are open for questions Have you received anything, Nils? have you received anything nils

Speaker 1: Yeah, we could just start out to sort things out. We'll start with questions from the audience here, and then we'll continue with questions from the webcast. We'll bring a microphone, so please. Yeah, we could just start out to sort things out. yeah we could just start out to sort things out We'll start with questions from the audience here, and then we'll continue with questions from the webcast. we'll start with questions from the audience here and then we'll continue with questions from the webcast We'll bring a microphone, so please. we'll bring a microphone so please Anyone? Anyone? anyone

Speaker 3: Nils, if you have questions from the webcast. Nils, if you have questions from the webcast. nils if you have questions from the webcast

Speaker 1: I have a couple of questions, yes. I have a couple of questions, yes. i have a couple of questions yes

Speaker 3: Maybe you. Maybe you. maybe you

Speaker 2: You guys should borrow your microphone. You guys should borrow your microphone. you guys should borrow your microphone

Speaker 1: There you go. Thank you. There you go. there you go Thank you. thank you I'm just going to read this question. It's from [Sam Elliotson]. You noted an order book of 20%. Similar companies in the industry tend to report a figure below that. How does Odfjell estimate the figure? I guess the question is sort of how we define the current fleet and the existing order book in our core segment. I'm just going to read this question. i'm just going to read this question It's from [Sam Elliotson]. it's from [sam elliotson] You noted an order book of 20%. you noted an order book of 20% Similar companies in the industry tend to report a figure below that. similar companies in the industry tend to report a figure below that How does Odfjell estimate the figure? how does odfjell estimate the figure I guess the question is sort of how we define the current fleet and the existing order book in our core segment. i guess the question is sort of how we define the current fleet and the existing order book in our core segment

Speaker 2: It's actually a good question. We are calculating deadweight versus deadweight, and that's how we calculate the figures. It's an interesting question because the question is, right now, how is the compliant fleet, the fleet that we are actually competing with, how is that fleet developing? What we've seen lately, for example, when it comes to the J19s that I mentioned, there are almost 350 of them, is that many of those vessels are being sold for regional trades in the Far East. They are still alive, they are still being counted, but they are no longer competing with the international fleet. I think this guy has a point that these figures are not absolute. Our figures are relative to each other every quarter. It's actually a good question. it's actually a good question We are calculating deadweight versus deadweight, and that's how we calculate the figures. we are calculating deadweight versus deadweight and that's how we calculate the figures It's an interesting question because the question is, right now, how is the compliant fleet, the fleet that we are actually competing with, how is that fleet developing? it's an interesting question because the question is right now how is the compliant fleet the fleet that we are actually competing with how is that fleet developing What we've seen lately, for example, when it comes to the J19s that I mentioned, there are almost 350 of them, is that many of those vessels are being sold for regional trades in the Far East. what we've seen lately for example when it comes to the j19s that i mentioned there are almost 350 of them is that many of those vessels are being sold for regional trades in the far east They are still alive, they are still being counted, but they are no longer competing with the international fleet. they are still alive they are still being counted but they are no longer competing with the international fleet I think this guy has a point that these figures are not absolute. i think this guy has a point that these figures are not absolute Our figures are relative to each other every quarter. our figures are relative to each other every quarter I think when you're looking at the figures that we are reporting, you have to compare them to what Odfjell has been reporting in previous quarters, and not necessarily with what other companies or other analysts are reporting, because they might have a different way to calculate the volumes. Also, it's different what they actually include as a core chemical tanker. We have very specific definitions of what's being included and what's not being included. I think when you're looking at the figures that we are reporting, you have to compare them to what Odfjell has been reporting in previous quarters, and not necessarily with what other companies or other analysts are reporting, because they might have a different way to calculate the volumes. i think when you're looking at the figures that we are reporting you have to compare them to what odfjell has been reporting in previous quarters and not necessarily with what other companies or other analysts are reporting because they might have a different way to calculate the volumes Also, it's different what they actually include as a core chemical tanker. also it's different what they actually include as a core chemical tanker We have very specific definitions of what's being included and what's not being included. we have very specific definitions of what's being included and what's not being included

Speaker 1: Thank you, Harald. The next one is from [Evan Colescore]. He's asking, what is the implied daily TCE for the current COA contracts? I'm not sure that's something we comment on specifically. Maybe an answer could be given. Thank you, Harald. thank you harald The next one is from [Evan Colescore]. the next one is from [evan colescore] He's asking, what is the implied daily TCE for the current COA contracts? he's asking what is the implied daily tce for the current coa contracts I'm not sure that's something we comment on specifically. i'm not sure that's something we comment on specifically Maybe an answer could be given. maybe an answer could be given

Speaker 2: There, I have to disappoint our viewer. That's not the figure that we are commenting on. There, I have to disappoint our viewer. there i have to disappoint our viewer That's not the figure that we are commenting on. that's not the figure that we are commenting on

Speaker 1: The next one is again from [Sam Elliotson]. You said you engaged more in CPP. Was it mostly in the Middle East to Asia trade or somewhere else? The next one is again from [Sam Elliotson]. the next one is again from [sam elliotson] You said you engaged more in CPP. you said you engaged more in cpp Was it mostly in the Middle East to Asia trade or somewhere else? was it mostly in the middle east to asia trade or somewhere else

Speaker 2: No, that was, as you might have understood, the trades in and out of the U.S. are those being by far most affected by the turmoil that we are observing due to the tariff discussions. For that reason, we have utilized the local CPP market in and out of the U.S. to kind of occupy our vessels while we are waiting to fill up our ships. No, that was, as you might have understood, the trades in and out of the U.S. are those being by far most affected by the turmoil that we are observing due to the tariff discussions. no that was as you might have understood the trades in and out of the u.s are those being by far most affected by the turmoil that we are observing due to the tariff discussions For that reason, we have utilized the local CPP market in and out of the U.S. to kind of occupy our vessels while we are waiting to fill up our ships. for that reason we have utilized the local cpp market in and out of the u.s to kind of occupy our vessels while we are waiting to fill up our ships

Speaker 1: Thank you. There is another question here from [Jusse Verberkmos]. Will swing tonnage grow if geopolitical issues are going to be solved? He's asking about the product tankers market, I guess, and the geopolitical situation. Thank you. thank you There is another question here from [Jusse Verberkmos]. there is another question here from [jusse verberkmos] Will swing tonnage grow if geopolitical issues are going to be solved? will swing tonnage grow if geopolitical issues are going to be solved He's asking about the product tankers market, I guess, and the geopolitical situation. he's asking about the product tankers market i guess and the geopolitical situation

Speaker 2: Where do I start? I think if there is a peace treaty between Russia and Ukraine, that will have an impact on the regional trades in Europe that I think will be positive for the regional trades. It is a question what happens to the shadow fleet. The shadow fleet today counts for some people say it's 25% of the total tanker fleet is being defined as part of the shadow fleet. If those vessels are being allowed, and that is a ridiculously inefficient way of running shipping to service only three countries in the world: Venezuela, Iran, and Russia. If those vessels are being allowed to simply swing back into the compliant fleet, then that might have a negative effect. I don't have any good answer to that question. There are factors going in all directions there. Where do I start? where do i start I think if there is a peace treaty between Russia and Ukraine, that will have an impact on the regional trades in Europe that I think will be positive for the regional trades. i think if there is a peace treaty between russia and ukraine that will have an impact on the regional trades in europe that i think will be positive for the regional trades It is a question what happens to the shadow fleet. it is a question what happens to the shadow fleet The shadow fleet today counts for some people say it's 25% of the total tanker fleet is being defined as part of the shadow fleet. the shadow fleet today counts for some people say it's 25% of the total tanker fleet is being defined as part of the shadow fleet If those vessels are being allowed, and that is a ridiculously inefficient way of running shipping to service only three countries in the world: Venezuela, Iran, and Russia. if those vessels are being allowed and that is a ridiculously inefficient way of running shipping to service only three countries in the world venezuela iran and russia If those vessels are being allowed to simply swing back into the compliant fleet, then that might have a negative effect. if those vessels are being allowed to simply swing back into the compliant fleet then that might have a negative effect I don't have any good answer to that question. i don't have any good answer to that question There are factors going in all directions there. there are factors going in all directions there

Speaker 1: No, absolutely. Thank you, Harald. I think that was actually the final question from the webcast audience. If there's any more in the audience here, thank you very much for your attention and for showing up. No, absolutely. no absolutely Thank you, Harald. thank you harald I think that was actually the final question from the webcast audience. i think that was actually the final question from the webcast audience If there's any more in the audience here, thank you very much for your attention and for showing up. if there's any more in the audience here thank you very much for your attention and for showing up