Good morning to all of you and welcome to Odfjell's presentation of our second quarter results. We will follow an agenda which should be well-known to all of you.

I will take you through the highlights, and then my colleague Terje Iversen will present our financial performance. Finally, I will conclude this presentation with an operational review, market update, and the prospects going forward.

If we then turn to the highlights, we start with safety. We have seen a very volatile environment this quarter, but I'm still very satisfied to report that our strong safety performance continued throughout the quarter.

I'm equally happy to say that our four Odfjell vessels that were trapped inside the Middle East Gulf have all safely left the region, and this is due to a fantastic cooperation between the people on board our ships and also onshore on different locations. We are presently not considering to send vessels through the Strait of Hormuz.

If we then turn to our financial performance, we delivered time charter earnings of $195 million. This is up from $167 million in the previous quarter.

Our average time charter earnings per day was 29,486. This is also up from 27,232 in the first quarter, and this reflects the stronger spot market that we observed during the quarter.

Our EBIT was $69 million. This compares to $46 million.

The net result contribution from Odfjell Terminals was 1.8, which compares to 2.3 in the previous quarter. Summarized, this concludes a net result of $54 million in the second quarter compared to $32 million in the previous quarter.

If we adjust for one-off items, the net result was $56 million compared to $26 million in the first quarter. Other important items: our carbon intensity, the so-called AER, was 6.9 in the second quarter, and this is down from 7.0 in the previous quarter.

We delivered this result despite the obvious inefficiencies that we observed in the Middle East region. We also took delivery of two newbuildings on long-term charter during the quarter, and at the same time, we sold one vessel for sustainable recycling.

On top of that, we signed an agreement to purchase four supersegregators to be constructed at the Kitanihon shipyard in Japan. Finally, yesterday, the board approved a dividend of 52 cents per share based on our adjusted first-half results.

By that, I give the word to Terje Iversen, 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 the income statement for this quarter.

As mentioned from Harald, time charter earnings this quarter ended at $195 million, a significant increase from the first quarter with 167. Looking behind the figures, of course, we were helped by higher spot rates, especially in the start of the quarter, which contributed to higher time charter earnings per day.

We also had an increase in commercial revenue days with 6,409 days, an increase of 295 days, primarily due to delivery of two new vessels this quarter and also three vessels that were delivered through the first quarter. We also had a slight decline in off-hire days, also then increasing available days this quarter.

Included in the net time charter earnings, we have also included $5.3 million, which is a customer settlement following a favorable outcome of a recent arbitration that, of course, then helped the total time charter earnings this quarter. Time charter expenses ended at $14.4 million compared to 15.2 in the first quarter.

Operating expenses, we saw a slight increase to 54.6, mainly due to new vessels joining the fleet this quarter. While we saw the G&A reduced this quarter from 20.3 to $18.2 million, mainly due to seasonal effects in the second quarter.

After other operating income not shown at this table at $1.4 million, we delivered an EBITDA of $111.3 million compared to $81 million in the first quarter. That also includes a net result from our joint ventures with 2.2 compared to 2.8.

Included in that figure is net result from our terminals with $1.8 million compared to 2.3 in the first quarter. The decline is related to a smaller impairment being done at one of the terminals in this quarter.

Depreciation and amortization increased somewhat to $41.7 million, mostly related to more vessels on our balance sheet. After a small capital loss this quarter related to a resale of a newbuilding contract for vessels being built in China, of $0.9 million, we delivered EBIT of $69 million compared to $46 million in the first quarter.

Net interest expenses declined somewhat to $13.8 million compared to 14.3 in the first quarter, also helped by net interest income this quarter related to the customer settlement that I mentioned in the net time charter earnings with $1.4 million, then contributing to net interest expenses going down this quarter. After other financial items and taxes, we then delivered a net result of $53.5 million compared to 32.1 in the first quarter, leading to earnings per share of 68 cents compared to 41 cents in the first quarter.

If you adjust for nonrecurring items, we delivered a result of $56 million. That is then related to the impairment I mentioned and also the capital loss and all other finance, improving the results to $56 million compared to adjusted result of $26 million in the first quarter.

Time charter earnings per day strengthened this quarter, at the same time we saw a lower cash break-even. Our time charter earnings per day ended at 29,486 compared to 27,232 in the previous quarter.

Main driver, of course, the stronger spot markets, especially as we saw in the start of the quarter. This is also worth mentioning that this time charter earnings per day excludes the customer settlement that I mentioned on the previous slide.

Cash break-even declined to 21,804 compared to 22,984 in the first quarter, bringing the 12 months rolling average to 22,165. The decrease was driven by added revenue days from the five newbuildings that were delivered during the first half and also less off-hire days in the second quarter.

Going forward, we expect average cash break-even for this year to be around $22,000 per day. Also worth mentioning, our P&L break-even was around 22,288 81 compared to very much the same figure in the previous quarter.

Looking at the balance sheet, we saw some changes on ships and newbuilding contracts. As mentioned, we sold one newbuilding under construction.

We also sold one vessel for recycling. On the other hand, we also paid pre-delivery installments for the four newbuildings, 40,000 deadweight-ton vessels being built, of $35 million in April.

We also took delivery of the two vessels on long-term time charters, then increasing the total value of ships and newbuilding contracts this quarter. Right-of-use assets then also increased from 285.7 to $321 million this quarter.

While we saw investments in associate joint ventures decline somewhat from 182.8 to $180.9 million this quarter. Main effect was related to that we took out dividend from the terminals of $3 million this quarter.

Cash and cash equivalents ended at $165 million, while including available drawing facilities, we had $385 million in available liquidity end of second quarter. Also worth mentioning that we paid the newbuilding Bow Pluto that we took delivery of in July with cash, and that will later be included in an existing loan facility.

On equity, we saw that equity increased by $46 million in line with the comprehensive income we booked this quarter, leading to equity percentage end of second quarter of 46%, very much in line with previous quarter. On the debt side, we saw that other current assets increased, and that was primarily due to the fact that we have more expensive bunker on our vessels and also increase in other inventories during this quarter, being also impacted by new vessels being added to our fleet.

Cash flow this quarter, we ended with a very strong operating cash flow of $81 million, increase of 30.9 compared to first quarter, and of course, that is mainly related to higher earnings this quarter. On the investment side, we sold the newbuilding under construction in China, and we also sold one vessel for recycling.

In total, that gave us cash of $33.2 million. On the other hand, we invested in the four newbuilding vessels with $35 million and also had some expenses to drydocking and other projects.

In total, we were then left with net cash flow for investing activities of 19.5 this quarter compared to 21.7 in the first quarter. Not much going on on the debt side when it comes to refinancing or new facilities, only ordinary repayments, leading to net cash flow from financing activities of negative 27.2.

In total, we then saw an increase in net cash and cash equivalents this quarter of $33.9 million. Looking at the last 10, 11 quarters, we see that we are delivering a quite strong quarter with the $80.6 million in operating cash flow, up from 49.7 in previous quarter, relates to higher time charter earnings, as mentioned.

Net cash flow from investment was negative 20 due to installments on the newbuildings primarily, and on the other hand, we also had the proceeds from the sale of ships during this quarter. In net cash flow, free cash flow then ended at 80 minus 20 is $61 million this quarter, up from 28 million in the previous quarter.

Looking at the 12 months rolling free cash flow, we are at $49.7 million, and if we adjust that for repayments related to right-of-use assets, we reach $37 million compared to 35 million in the previous quarter. On the debt side, not that much going on when it comes to maturing facilities the next quarters, not before in the fourth quarter '27.

Looking at the total debt end of second quarter, we have around $738 million in interest-bearing debt. We expect a slight increase year-end due to delivery of Bow Pluto that will be financed by the new tranche that will be drawn upon these days.

Then we expect a small decline going forward based on existing profiles and maturing loan going forward. Not included in this slide is the financing of the four newbuildings, the 40,000 deadweight tons vessels being delivered from first quarter '27 until second quarter 2029.

That will increase this estimated numbers. On the projected debt right-of-use assets, that is $321 million end of second quarter.

That will increase end of this year around $400 million, mainly due to delivery of three four newbuildings that will deliver on time charter throughout the second half. Then we also will see an increase in right-of-use asset debt in '27 and '28 due to the newbuildings being delivered on long-term time charters to Odfjell.

When it comes to the four newbuildings, we are in process and we are evaluating alternatives these days, and we expect that financing to be finalized within end of this year. CapEx and time charter commitments, in total, we have CapEx commitments at $289 million for the total for the four newbuildings and including Bow Pluto, which then was paid in July with $35.4 million.

Then we are left with the four 40,000 newbuildings being scheduled to be delivered from first quarter '27 to second quarter '29. On long-term time charters, we are signaling that we are having a lot of commitments when it comes to newbuildings being delivered from second half '26 until 2029.

If you summarize a total time charter hire for all these vessels, we are close to $970 million. On our balance sheet, that means that we will add around $500 million in new assets from second half '26 to end of 2029.

Harald will come further into that, but these vessels that we have on time charter that are going to be built and our own newbuildings accounts for around 13% of the current order book in our core segment. Then I will leave the word to you again, Harald.

Thank you very much, Terje. By that, I will continue with an operational review.

We start with the volumes, and as you can see on the left-hand side of this slide, we have relatively stable volumes quarter-on-quarter. We lifted 3.2 million tons of cargo during the second quarter, which is the same as we did in the first quarter.

However, if you look at the quarters reported in 2025, you see that the volumes are down from previous levels, and that is, of course, the effect of the Middle East Gulf situation. The split between spot and contract volumes were relatively stable also during this quarter, and we are reporting a contract coverage of 46%, which is up 1% compared to last quarter.

If we then turn to the markets in general, the Clarkson chemical tanker spot index reported an increase of 24% during the quarter, while the Odfix index is up 9.8%. It's important once again to notice here that Clarkson is reporting the difference between rates at the end of the first quarter and compare these with the rates at the end of the second quarter.

The Odfix index is reporting average earnings during the quarter, those two graphs are not entirely comparable. If we look at the volumes, we see that there is a slight decrease on specialty and commodity chemicals, but this is to a large extent outweighed by an increase on veg oils and biofuels.

During the second quarter, 19% of the volumes that we lifted were veg oils and biofuels. In the second quarter, this figure was 12%, and this compares to an average of 8% in 2025.

We clearly see that has been a bigger influx of veg oils and biofuels during the first half, and I must say I'm satisfied by my organization's ability to change operation modus in line with changing market conditions. CPP was stable at approximately 4% of our total volumes.

Then to sustainability, we reported an AER of 6.9, which is down from 7.0 in the previous quarter, and it's important to notice that we delivered those strong figures despite the fact that we see significant inefficiencies in and around the Middle East Gulf. Going forward, we will add more and more super eco vessels, and that will have a positive impact on our AER performance in the future.

Finally, we are watching carefully the build-up of the El Niño in the Pacific Ocean. We do believe that this will have an impact on transits through the Panama Canal.

It will likely have an impact on energy prices from November onwards, and we are also curious about the effects that it will have on the crop yields, and by that, production of veg oils and biofuels. Turning to our terminals, the headline here is stable performance despite significant volatility in the global markets.

Our average commercial occupancy rate increased to 96%, that's up from 94% in the previous quarter. Throughput was up 6%, and the number of handlings was relatively stable.

Our consolidated EBITDA for the terminals was 10.7, and this compares to 10.6 for the previous quarter. We have previously disclosed a shareholder dispute at our terminals in the US, and this dispute was referred to the court, and we are satisfied to see that the judge ruled in favor of Odfjell on all the counts handled in the court.

Going to the market situation, the storage demand in the US is relatively soft. This is due to the world geopolitical situation, and we see the same tendency in Asia, where there are direct and indirect headwinds due to the shortfall or disappearance of Middle East volumes.

We expect this situation to continue as long as the situation is as it is in the Middle East. We have previously reported two important expansion projects, one at our terminal in Antwerp, where we are building 18 duplex stainless steel tanks with a total capacity of 36,000 cubic meters.

This project is on schedule, it's on budget, and we expect the tanks to be on stream by the first quarter of next year. We are also building out at our terminal in Ulsan.

Here we are building 88,000 cubic meters of carbon steel tanks. This project is on time and below budget, and we expect the tanks to be on stream towards the end of this year.

Then to the market update and prospects going forward. We see that there are being reported strong earnings from the other tanker segments, both for VLCC and for the MR earnings, and this situation has obviously an effect on chemical tanker freight rates.

We did see a sharp increase in rates at the start of the quarter, particularly west of Suez, but also east of Suez. West of Suez, this increase has been tailing off towards the end of the quarter, but the rates are still at very robust levels.

We also saw some tailing off of rates east of Suez towards the end of the quarter, and of course, this area was characterized by a surplus of tonnage due to the disappearance of the two Middle East trades. Naturally, rates have not been reported for those two trades since the outbreak of the war in the region.

Then to the volumes and swing tonnage situation. I think the most interesting takeaway from this graph is the shortfall of volumes during the past three months, where we see that volumes are lower than what we've seen in the previous months and quarters, and the shortfall is approximately 6% of the total volumes.

We're also satisfied to see that swing tonnage is being maintained at very low levels. Then to the order book.

The order book today stands at 20% of the sailing fleet. Odfjell has 13% of that order book, and that is at the end of the second quarter, we had 20 vessels on order.

Since then, one vessel has been delivered, meaning that today we have 19 vessels on order, of which 17 are being built in Japan. The biggest fleet increase will be seen in the medium stainless steel segment, while we see more modest increases in the supersegregator segment, which is Odfjell's core segment.

Going forward, we have seen the total volumes decline during the second quarter, and we've also seen that there has been an increase in volumes out of the US and Asia, but these increases have not been enough to totally compensate for the lost Middle East volumes. The uncertainties in these figures relates to what is related to production increases and what is related to drawing on feedstock inventories.

That is one uncertainty when it comes to the chemical tanker markets going forward. The economic growth figures are relatively stable, but there are signs of increased inflation, which again can have an impact on interest rates.

Finally, we clearly see that the inefficiencies in the Middle East have a significant impact on the ton-mile production, which is the main reason why we have seen freight rate increases both east and west of Suez. On the supply side, we do see that there will be vessel delivered the rest of this year and also next year, and that will, of course, have an impact on the freight rates.

At the same time, we see that we are building up a rather significant book of recycling candidates, which will provide a buffer for the vessel deliveries in the coming years. When it comes to swing tonnage, we expect that the other tanker segments will continue to maintain the present rate levels, and that will prevent the influx of swing tonnage into the chemical tanker business.

Going forward, we expect the volumes to be more or less in line with what we've seen in the second quarter. We don't observe any important changes in the world GDP growth.

We expect the geopolitical situation to continue throughout the third quarter, and here I would like to add that the situation that we are facing today with unrest in the Middle East, we've seen increased unrest in the Black Sea, we've seen increased volatility in the Red Sea, we've seen attack in the eastern part of the Mediterranean, and finally, we've also seen increased activity on the coast of Somalia. I think this is the first time that we see increased volatility in all these areas at the same time.

On the supply side, I've mentioned the increase in the total sailing fleet, and I also touched upon the modest influx of swing tonnage. To summarize this short presentation, Odfjell reported a net result of $54 million.

This compares to $32 million in the previous quarter. For Odfjell Tankers, we saw an increase in average time charter earnings per day, and we also saw an increase in total time charter earnings during the quarter.

We reported an increase in commercial days, and we also had a relatively low activity on the drydocking side. For Odfjell Terminals, stability is the keyword.

EBITDA and net result was very stable quarter-on-quarter, but the volatile geopolitical situation has an impact on storage markets, both directly and indirectly, and we expect this to continue throughout the third quarter. Going forward, we have seen that the spot markets have softened, but the rates are still at very attractive levels.

Chemical tanker fleet will continue to grow, and the swing tonnage will remain low. All in all, we do believe that this will continue to support the present rates, but there might be a potential downside with respect to vessel deliveries and the potential uncertainties related to diminishing inventories around the world.

For the next quarter, we expect underlying net result to be lower and closer to the levels reported in the first quarter. By that, we have concluded our presentation, and we are now open to answer any question that you might have.

Yes. We have received quite a few questions during the presentation, I will, as per usual, read them chronologically, and I think some are of the same topic, maybe we will try to bundle a little bit together here.

Starting with the first one here. This goes to you, Harald.

If Asia and the US were unable to compensate for lost Middle East Gulf volumes, why did freight rates spike and why are they still elevated? Do you expect rates to soften for the remainder of 2026?

If we start with the volumes, I said that the total volumes transported by chemical tankers was down approximately 6%. At the same time, we do know that the Middle East is delivering some 15% to 20% of the total production of the world.

That means that when those 15% to 20% disappear from the market, but the total decrease is only 6%, that means that volumes are increasing in other regions of the world. We have seen first and foremost an increase in a compensation for the volumes that have disappeared.

That compensation is now being transported over much longer distances, meaning that the total ton-mile production during this quarter has been higher than what we have seen in the previous quarter, and that again explains why the freight rates are going up. This is to very large extent ton-mile driven.

Yeah. Thank you.

Next one is to you, Terje. It's quite a specific question, and I think you touched upon it during your presentation, but just for any confusion, I think this is relevant.

In your Tankers report, you show an EBITDA of $116.8 million, but after adding elements, this is in fact $115.5 million. What is the difference?

As I mentioned during the presentation, is that we had other operating income of $1.4 million this quarter, which is included in the EBITDA, but not specifically shown in the P&L that we showed on the screen. If you look into the detailed P&L and also the notes, you will find further details related to that.

Yeah. Thank you.

I think there are a few questions here and this I think goes back to you, Harald. It's relating the current market and our outlook, and also the fact that we are taking delivery of vessels for the second half of 2026 and, of course, for the coming years.

Maybe if you could just elaborate a little bit on how we see sort of taking new vessels into a potentially somewhat softer market, and a little bit around that development.

I can do that. We have been taking vessels into our fleet for more than a year already.

All those vessels have been planned into our schedule. They go immediately into production and they are making money from day one.

I'm not for a second concerned about the vessels that will come into our fleet in the coming quarters and years. We have a plan for every one of them.

Secondly, we also have some buffer with existing vessels that are either due for recycling or where the time charter agreement is expiring, we have plenty of opportunities to balance our fleet. I think the main message is that for more than a year, we've been taking those vessels into our fleet.

We've been making money on them, and we will continue to do so also for those 19 vessels that are due to enter our fleet.

Thank you. Next question is a bit specific on products here, and if I may, I believe I have some of the figures that he's asking for here...

but the question is: I read that sulfuric acid volumes are declining due to export bans. I assume that refers to China.

Given our large stainless steel fleet, would that have a big impact on us? It is correct that acid volumes out of China have declined.

At the same time, we see that our total acid volumes, first off, we have a diversified mix of products that we carry, we will never see that one particular product will impact us in a significant way, but I believe our volume of acids was around 8% to 10% before the crisis, and this has actually been quite stable for us even after the export ban from China. Yeah.

The next question is to you, Terje, again, and you touched upon it in your presentation, but the question is if you could elaborate a little bit more on the planned timing of when you will secure financing for the owned newbuildings on order.

Sure. I must say that we started to look into alternatives right after we placed the newbuilding orders a couple of months back.

We have been working on alternatives, and I must say we are quite advanced in our discussions with alternative structures. I must say that we are very happy to see large interest out there to finance us and offer us competitive financing.

I'm quite optimistic that we are during this fall going to conclude financing at least for a couple of these vessels. We may wait a bit because some of these vessels are delivered in '28 and '29, and to avoid paying commitment fees and being stuck with that for a couple of years, we may conclude only a couple of those before end of year and wait with the two last ones.

That is remained to be seen, but as I said, we are seeing great interest and we expect to land a really good competitive financing for these vessels.

Great. Thanks.

Next one is back to the Middle East situation. Again, you did touch upon this in your presentation, Harald, but: As the Middle East Gulf remains shut, which markets do we have some sort of advantage in, and can we pivot to?

Odfjell is luckily present in all the important global markets in the world. The advantage of that is seen in the situation that we are in now.

We have the capacity to change our vessels around, the shortfall of Middle East means that we are moving our vessels into other trades and also other products. I think this is best showcased with the 19% of total volumes that I mentioned for veg oils and biofuels.

This is just an example of how we are utilizing our fleet to maximize earnings.

Thank you. Next one is regarding COAs, and the question is: How has your COA rate renewal evolved in 2026 so far?

There's also another question is: How do you see your COA rate as a relative share of volumes going forward?

When it comes to the renewal rates, I don't have the exact figures, but we do see a moderate increase when we are renewing the contracts. I also have to add that the second quarter was not a particularly active month when it comes to contract renewals, it remains to be seen how this will develop throughout the year.

I'm equally happy to see that we continue to attract new contracts. We had several contracts being added to our portfolio during this quarter, and that is, I would say, a very positive sign.

Then second part of the question was...

How do we see the development of contract volumes versus spot volumes going forward? Yeah.

Of course, the main reason why we see a reduced contract share during the two last quarters is the absence of Middle East volumes. All the contract volumes from that region have disappeared, and they are being replaced by spot volumes in other markets, and that is the reason why we see a decline on the contract side.

The most important takeaway here is that we are able to turn around and we are able to attract spot volumes to compensate for what's disappearing. Going forward, unfortunately, I think there is no immediate sign of a resolution to the situation in the Middle East, I think we will continue to see this type of situation also in the coming quarters.

Thank you. Then the final question that we have received is regarding the Panama Canal, and the question is: The Panama Canal yesterday announced a cut in all daily transits effective in September.

In '23, '24, when slots were last cut, chemical tanker rates improved significantly. How do you view the potential implications for your segment?

There are not

chemical tankers are not kind of the the major ship type in the Panama Canal. Of course, those vessels that are that are bringing chemicals from the US to to to Far East typically utilize the Panama Canal.

The last time that that we saw a decline in in Panama Canal transits, then then most of the chemical tankers were rerouted and sailing eastwards around Africa, and then that way to to to Asia. To My first observation is that it seems that the Panama Canal is much better prepared this year than than what they were the last time that they had a drought in in Panama.

They have taken action at an earlier stage. They have on two occasions reduced the the the maximum draft, and now they are making new new efforts to to to to to reduce the effects of a potential El Niño effect in in Panama Panama.

I think they will we will this year this time we will see a more controlled development or in the situation in of the situation in Panama, but still there will be effects for chemical tankers simply because chemical tankers are not prioritized ship type when it comes to to to transits through the canal. The prioritized ship types are above all the the gas tankers, and and secondly, the the container vessels.

Thank you. That was the final question that we have received today.

Okay. Then I thank all of you for listening in.

I thank those of you who have sent in questions for very interesting questions. I wish you a nice day ahead, and also a nice weekend when that time comes.

Thank you for attending.