Odfjell Technology Ltd

Okay, good morning again, everyone. First and foremost, I apologize for this delay, which is due to some technical issues here at the Continental Hotel in Oslo. We are today presenting our fourth quarter results and the preliminary full year results in front of a live audience here in Oslo. And I'm very pleased to welcome our loyal shareholders, the banks. We have the analysts here and also the journalists. A hearty welcome to all of you. The presentation today follows a traditional agenda. I will take you quickly through the highlights and then my colleague Terje Iversen will take you through our financial performance and I will summarize this presentation with an operational review and also a market update and our prospects for the future. Then turning to the highlights, we are once again very happy that we delivered a quarter where we had no serious incidents in our fleet. We delivered time chart earnings of 168 million US dollars and this compares to 173 in the previous quarter. Time charter earnings per day were down less than 1%. We produced 27,978 US dollars in the fourth quarter. And this compares to 28,174 in the third quarter. The EBIT was 53 million. This compares to 59 million. And the net result contribution from on-shelf terminals was 1.8 versus 2.6 in the previous quarter. We had a net result of 38 million U.S. dollars. This compares to 43 in the previous quarter. And adjusted for one of items, we had 38 versus 42. We also, during the quarter, launched the world's first operational green corridor between Brazil and Europe. This corridor is self-funded, and we did it to accelerate the implementation of biofuel in deep-sea shipping. I will come back to that later in my presentation. We also concluded contracts for two more super-segregators. They will be delivered in 28 and 29. And finally, the board approved a dividend of 48 cents per share on our net adjusted result for the second half of 2025. If we look at the year in total, we had a financial result of 155 million US dollars, The total dividends for the year is 98 cents, which then amounts to 78 million US dollars. In total during the year, we ordered four new buildings on time charter, and we also launched in the last quarter of last year, then we formalized the cooperation with our Japanese tonnage providers. I know we in total have 22 new buildings on order, of which 10 will be delivered in 2026. I will also come back to that later in my presentation. The AER was 6.8 through the year, and that is a 4.2% improvement compared to 2024. The outlook, we expect a slight reduction in our underlying net result compared to the fourth quarter. And by that, I give the word to Terje, who will take you through our financial performance. Thank you.

Thank you, Harald, and good morning to all of you. I will, as usual, start with an income statement for this quarter. As Harald mentioned, we delivered a time-shadow earnings of $168 million this quarter, which is 3% down compared to the third quarter. Looking behind the figures, we saw that the time-shadow rate per day was quite unchanged compared to the third quarter, and also the freight rate per ton was quite at the same level as in the third quarter. So actually, the reduction in time-shadow earnings had mainly to do with fewer commercial days in the fourth quarter compared to the third quarter. On timeshot expenses, that ended at 7.4, slightly down compared to the third quarter, while we saw that operating expenses ended at 50.2, very stable compared to previous quarter, while share of net results from associates and joint ventures ended at 1.8 compared to 2.6 million U.S. dollar. G&A increased somewhat from 20 to 23.5 million U.S. dollar, That is a few reasons for that. One is that we had the high activity this quarter with also higher legal expenses. We also had some year-end adjustment of provisions for short-term incentive programs for the employees and we also had some adjustment on pension costs this quarter leading to somewhat higher G&A this quarter compared to what you should expect in a normal quarter. That leads us to an EBITDA of 88.9 million US dollar. Depreciation 36.3 slightly down compared to third quarter. Main reason being that we sold one vessel in the end of the last year and also that we had some tax credits from some dry docking activities in Brazil that we took advantage of in the fourth quarter that reduced our depreciation in that quarter. That leaves an EBIT of 52.6 million US dollars compared to 59. Net interest expenses decreased to 13.9 compared to 15.5. The main reason is that we have a slightly reduction in our debt. We have better margins on our loan and also a lower SOFR this quarter than in the previous quarters. And then after all the financial items in Texas, we are then delivering a net result of 38 million U.S. dollar, which is down 5 million U.S. dollar compared to last quarter. And also adjusting for net non-recurring items being limited, we ended up with the net results also adjusted at 38 million US dollars in the fourth quarter. Looking at time charter earnings compared to the cash break even, we see that time charter earnings per day ended at around 28,000 US dollars this quarter, slightly down from the previous quarter as mentioned. Looking at cash break even, in the fourth quarter we ended at $21,817 compared to just about $22,000 in the third quarter. And looking at the 12 months rolling average, we are down close to $23,000 in cash break even. Decrease this quarter, mainly driven by lower dry docking activity than in the previous quarter and also slightly lower interest expenses. So we have a difference between the time shutter earnings and the cash per game around 5,000 US dollar per day. And looking at our time shutter fleet, that also correspond very much to the same figure, looking at the 2025 figures. And looking at the same long-term time shutter vessels, the total in 2025, we deliver net results for these vessels around 28 million US dollar in 2025. Going forward, we expect slight improvements in the cash per given to be around 22,200 in average for 2026. The balance sheet, not that much to report on. We saw a slight decrease in total values, shifts in new billing contracts due to the sale of both CEDAW and also, of course, also depreciations. It's also worth noticing that we are increasing the investments in associate joint ventures for 173 to 183 million US dollar. Main reason being the new joint venture Orca Lakata Maritime and also the working capital that we are injecting into that joint venture or have been injected during the quarter. Cash and cash equivalents increased somewhat to 149 million US dollar end of 2025. And if we include under-owned loan facilities, we have available cash of around 344 million USD end of 2025. Equity increased with 36 million USD being the comprehensive income for the quarter, and we are close to 1 billion USD in book equity. And compared to a total asset of around 2 billion, we are then close to 50% book equity per end of 2025. On the debt side, we are continuing to reduce our debt, and we did an extraordinary debt repayment of 30 million U.S. dollars in the fourth quarter. Cash flow, we had quite a strong cash flow, I would say, this quarter, ending at 74 million U.S. dollars, up compared to the third quarter. The main reason being that we had stable working capital this quarter, while we had an increase of the working capital in the third quarter that impacted the operational cash flow. Cash flow from investing activities ended at negative 6.4. Positive, of course, impacted by the sale of Bovo Sedar with $9.8 million and positively impacting the cash flow for investing activities in the quarter. On the financing side, we are continuing to reduce debt that's mentioned, and we did this external debt repayment, leading to negative cash flow from financing of 54.9 in the quarter. And in total, we are done ending with 12.7 in positive cash flow, changing cash during this fourth quarter. Looking at the more long-term development on the free cash flow, free cash flow being the cash that is available for debt service and equity, we see that we continue to deliver a quite strong free cash flow. And this quarter ended with a free cash flow of $68 million compared to $42 in the third quarter. And again, of course, positively impacted by the sale of this vessel and also negatively impacted by the joint venture working capital that we injected in this quarter. And looking at the 12 months rolling pre-cash flow, we are around 58.2 million US dollar. And if you are just for debt repayments related to the right of use of assets, we are around 45.6 million US dollar in the fourth quarter. This is a bit of a busy slide. I will take you through it. Looking at the charts at the top, this is showing the scheduled repayments of interest-bearing debt per end of 2025. As you can see, we have some debt repayments in the first quarter of 2026. That has been taken care of already with a new financing facility that we are drawing on these days. So except for that, we have very limited debt repayments in excess of ordinary installments during the coming years until end of 2026, where we have a – 2027, we have a small balloon that we, of course, will be capable of taking care of. Then in the middle of this, we have a chart showing the expected development of interest-bearing debt. As you can see, we are around $709 million interest-bearing debt end of fourth quarter. We expect a slight increase in that figure during 2026, based on taking delivery of one new building and also both Hercules. So we are doing new debt on these vessels. And then, of course, we are also including ordinary repayments, installments here. But also, then looking further into the future, we expect interest paying debt to continue to decline into 2027 and 2028. Down on the bottom here, we have included what is expected or projected book debt related to right of use assets. As we have talked about, we have around 20 vessels on new that are going to be delivered on long-term time charters the coming years. And here we are projecting what will, how will the balance sheet look when these are being delivered to the company. So end of 2025, we had 226 million US dollar in so-called debts related to right of use assets. When we are taking nine new vessels into our operations in 2026, that amount will increase to around 384 and increase further to 587 then in year-end 2027 before it's stabilizing. Then we have taken delivery of all the new 20 vessels on new long-term time charters and the depth or the capital elements of that commitment have then been included in this forecast. This is summarizing the CAPEX going forward and the timeshifter commitments. We have talked about Douglas already, has been taking into our books at the start of this year. We acquired that vessel with cash, but it will be then financed with a new bank facility that we are drawing upon these days. We have two other new billings on order that will be delivered in 26 and 27, summarizing to 82.3 million US dollar. And except for that, we have done these new time-shutter vessels that are going to be delivered in the coming years. And here we are showing at the bottom of this chart or this table, showing what are the time-shutter commitments that we will take into account on our balance sheet going forward, and also what will be the nominal time-shutter rates to be paid under these time-shutters. So if we summarize the time-shutters to be paid for these 20 vessels, we are at around 1.1 billion US dollar for these. for the next seven, eight years in total for these 20 vessels that has not been delivered yet. On our balance sheet, this will be booked as right-of-use assets, and we will then include 237 million US dollar in 2096 as new right-of-use assets, and that will summarize in total for these vessels to 625 during the next two years. As we have mentioned a few times before, these vessels, these 20 vessels, that accounts for 40% of the current order book in our core segment. That will be the word to you again, Harald.

Thank you.