"In the second quarter of 2024, Odfjell delivered yet another record result, following the strong first quarter. The market balance continued to be tight with our robust COA portfolio and excellent operational performance underpinning our solid financial results. We expect 3Q24 to be another strong quarter, somewhat below 2Q24," stated CEO Harald Fotland in the stock market release.
Our steadfast commitment to safety continues to be a fundamental part of our operations. Throughout the quarter, we maintained high levels of operational efficiency, with no significant incidents reported.
From a financial standpoint, Odfjell Tankers delivered impressive time charter earnings of USD 215 million, up from USD 195 million in the first quarter of 2024. Our EBIT increased to USD 107 million, a notable rise from the previous quarter's USD 89 million. Additionally, we reported a record-breaking net result of USD 88 million, adjusted for one-off items, compared to USD 69 million in 1Q24.
This quarter also saw the successful renewal of our COAs (contracts of affreightment), with an average rate increase of 5%, covering approximately 6% of our estimated annual contract volume
Odfjell Terminals contributed USD 2.9 million to our net result, a slight decrease from USD 3.2 million in the previous quarter. Our carbon intensity (AER) for 2Q24 improved marginally to 7.1, underscoring our continued focus on environmental sustainability.
We further strengthened our fleet with the delivery of a new vessel on a long-term charter and secured contracts for two additional newbuildings scheduled for delivery in 2027 and 2028. This brings our total number of newbuildings to 17 vessels.
Lastly, reflecting our robust performance in the first half of 2024, the Board approved a dividend of USD 1.00 per share.
These results reflect Odfjell's ongoing operational efficiency and financial performance during the second quarter of 2024. With renewed contracts, fleet expansion, and continued focus on safety and sustainability, the company remains positioned for further progress in the coming quarters.
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