Second Quarter 2014 Results...November 2013 Bow Condor 16 121 2000 Stainless Purchase J/V October 2013 Bow Eagle 24 700 1988 Stainless Short-termTC August 2013 Southern Koala 21 290

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Second Quarter 2014 ResultsOslo – 25 August 2014

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Agenda

• Highlights

• Financials

• Operational review

• Market update and prospects

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Highlights• Second quarter results in line with expectations. Underlying operations slightly

better than in first quarter

• Chemical Tankers EBITDA of USD 24 million, compared with USD 17 million

in first quarter

• Time-charter results up by 10%

• Adjusted for one-off charges at Odfjell Terminals (Rotterdam), Odfjell Terminals

EBITDA of USD 1.8 million compared to USD 0 million in first quarter

Highlights

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Annualized EBITDA¹

Chemical tankers Tank terminals LPG/Ethylene

¹ Proportional consolidation method according to actual historical ownership share

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Highlights

• Re-organisation charge at Odfjell Terminals (Rotterdam) in May of USD 11.8

million (our share)

• Announcement of new LPG/Ethylene joint venture, and exercising options for

four 22,000 cbm LPG/Ethylene gas carriers at Nantong Sinopacific in China

• Ongoing cost-cutting and efficiency review to provide for a more competitive

cost structure indicates potential for significant improvements

Highlights

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Income statement¹ - Second quarter 2014

USD mill 2Q14 1Q14

Gross revenue 275 266

Voyage expenses (127) (130)

TC expenses (50) (52)

Operating expenses (48) (43)

Share of net result from associates and JV (11) (7)

General and administrative expenses (26) (25)

Operating result before depr. (EBITDA) 13 9

Depreciation (23) (23)

Capital gain/loss on fixed assets 0 (0)

Operating result (EBIT) (9) (14)

Net finance (15) (8)

Taxes (1) (1)

Net result (26) (23)

Financials

hallo¹ Equity method

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Quarterly figures¹USD mill

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2012 2013 2014

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Gross Revenue

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1015202530354045

2012 2013 2014

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EBITDA

• Increase in gross revenue of USD 12 million compared with last quarter

due to improved time-charter results

• EBITDA heavily impacted by one-off re-organisation charges of USD

11.8 million at OTR

• Adjusted for one-off charges, EBITDA 2Q14 USD 29 million compared to

USD 17 million 1Q14

• Increase in gross revenue of USD 12 million compared with last quarter

due to improved time-charter results

• EBITDA heavily impacted by one-off re-organisation charges of USD

11.8 million at OTR

• Adjusted for one-off charges, EBITDA 2Q14 USD 29 million compared to

USD 17 million 1Q14

Financials

¹ Proportional consolidation method

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Quarterly figuresUSD mill

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‐6‐15

‐5

8

‐15‐25

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‐23

‐99-120

-100

-80

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-40

-20

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20

40

2012 2013 2014

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Operating Result (EBIT)¹

• EBIT in line with previous quarter

• EBIT includes one-off items of total USD 14 million

• Net interest remain stable

• EBIT in line with previous quarter

• EBIT includes one-off items of total USD 14 million

• Net interest remain stable

‐8 ‐9 ‐9 ‐9 ‐9 ‐7 ‐7 ‐9 ‐9 ‐9

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‐1

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10

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Net Finance²

Net interest Other financial/currency2012 2013 2014

Financials

¹ Proportional consolidation method² Equity method

haallooooooooooooo

‐4‐13

‐23‐28

‐2

‐26‐39

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2012 2013 2014

USD

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Net Result

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Balance sheet¹ – 30.06.2014

USD mill - AssetsShips and newbuilding contracts 1 299

Other non-current assets/receivables 77

Investment in associates and JV’s 361

Total non-current assets 1 738

Available-for-sale investments and cash 130

Other current assets 150.

Total current assets 280

Assets held for sale 82

Total assets 2 100

Equity and liabilitiesTotal equity 705

Non-current liabilities and derivatives 42

Non-current interest bearing debt 1 073

Total non-current liabilities 1 115

Current portion of interest bearing debt 142

Other current liabilities and derivatives 101

Total current liabilities 243

Liabilities held for sale 36

Total equity and liabilities 2 100

• Cash balance of USD 130 million - excluding JV’s cash

• Net investment in tank terminals JV’s USD 351 million

• 9.8% of own shares held as treasury shares

• Equity ratio 33.6%

• Cash balance of USD 130 million - excluding JV’s cash

• Net investment in tank terminals JV’s USD 351 million

• 9.8% of own shares held as treasury shares

• Equity ratio 33.6%

Financials

¹ Equity method

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Debt development1 – 30.06.2014• Tap issue of NOK 300 million in the existing NOK 500 million bond

maturing December 2018

• New financial leases on Bow Tribute and Bow Trajectory increased debt by 82 million

• Renegotiation of the North-American tank terminal funding will release USD 50 million

of dividends, that will be used for our tank terminal projects

• Exploring various financial arrangements for our gas newbuildings

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2014 2015 2016 2017 2018

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Debt Portfolio

Ending balance Repayment

Financials

050

100150200250300350400

2014 2015 2016 2017 2018U

SD

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Planned Debt Repayments

Secured loans Balloon LeasingNOK bond 12/15 NOK bond 12/17 NOK Bond 12/18

¹ Proportional consolidation method

Balloon repayment in late 2015 primarly relates to loans on our sophisticated stainless steel

vessels built in Poland

Balloon repayment in late 2015 primarly relates to loans on our sophisticated stainless steel

vessels built in Poland

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Capital expenditure programme

In USD mill – per 30.06.2014 2014 2015 2016 2017 2018Chemical Tankers, Odfjell share

Hyundai Mipo, 2 x 46,000 dwt 55

Docking 12 21 21 21 21

Odfjell Gas, 100 % share

Sinopacific, 4 x 17,000 cbm 18 81 63

Sinopacific, 4 x 22,000 cbm 10 25 84 70

Tank Terminals, 100% share

Planned (not commited) capex 127 88 50 41 13

Financials

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Income statement¹ – 2Q14 chemical tankers

USD mill 2Q14 1Q14

Gross revenue 270 263

Voyage expenses (125) (128)

TC expenses (48) (51)

Operating expenses (48) (42)

General and administrative expenses 2 (25) (24)

Operating result before depr. (EBITDA) 24 17

Depreciation (23) (23)

Capital gain/loss on fixed assets 0 0

Operating result (EBIT) 1 (6)

Financials

¹ Proportional consolidation method 2 Including corporate

Including a one-off item of USD 2.2 million related our South American operationsIncluding a one-off item of USD 2.2 million related our South American operations

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Income statement¹ – 2Q14 tank terminals

USD mill 2Q14 1Q14

Gross revenue 24 23

Operating expenses (26) (17)

General and administrative expenses (8) (6)

Operating result before depr. (EBITDA) (10) (0)

Depreciation (8) (8)

Capital gain/(loss) 1 -

Operating result (EBIT) (17) (8)

Financials

¹ Proportional consolidation method

Including one-off items of USD 11.8 million related re-organisation at OTRIncluding one-off items of USD 11.8 million related re-organisation at OTR

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Results per segment¹

2Q14 1Q14

USD mill Chemical tankers

Tank terminals LPG/E Chemical

tankersTank

terminals LPG/E

Gross revenue 270 24 8 263 23 5EBITDA 24 (10) 1 17 (0) 0EBIT 1 (17) 1 (6) (8) (1)

-40%

-20%

0%

20%

40%

60%

80%

100%

Gross revenue EBITDA Assets

2Q14

Chemical tankers Tank terminals LPG/Ethylene

Financials

¹ Proportional consolidation method

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Annualized EBITDA¹

Chemical tankers Tank terminals LPG/Ethylene

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Tank terminals EBITDA – by geographical segment

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Europe NorthAmerica

Asia Middle East

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illEBITDA YTD 2014

EBITDA Tank Terminals by geographical segment 2Q14 1Q14

Europe (20) (9)North America 4 3Asia 4 3Middle East 3 2Total EBITDA (10) (0)

• One-off charges of USD 11.8 million at OTR

• Divestment of Vopak Terminal Ningbo Ltd

resulted in a profit of USD 1.3 million

• One-off charges of USD 11.8 million at OTR

• Divestment of Vopak Terminal Ningbo Ltd

resulted in a profit of USD 1.3 million

Financials

* Revenue and profit from the terminals included in the Lindsay Goldberg transaction in 2013 are recognized according to the new ownership percentages from 1 September 2013.

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Vessel operating expenses - chemical tankers

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USD

USD / day, total USD/day, crew

Operational review

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Bunker development

68.6 70.1 71.1 72.3 65.9

(4.8) (3.1) (4.8) (4.2) (3.9) (1.0) (1.8) (1.1) (0.4) (0.7)

62.7 65.2 65.2 67.761.3

(30)(20)(10)

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2Q13 3Q13 4Q13 1Q14 2Q14

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illNet Bunker Cost

Bunker purchase Bunker clauses Bunker hedging Net bunker cost

0100200300400500600700800

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USD

/mt

Platts 3.5% FOB Rotterdam

Operational review

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• Net bunker cost per tonne in 2Q was USD 559

• About 30% of the remaining 2014 exposure and

10% of the 2015 exposure is hedged

• Bunker clauses in CoAs cover about

53% of the exposure

• Net bunker cost per tonne in 2Q was USD 559

• About 30% of the remaining 2014 exposure and

10% of the 2015 exposure is hedged

• Bunker clauses in CoAs cover about

53% of the exposure

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Fleet development - last 12 months

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Operational review

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Fleet additions DWT Built Tanks Transaction

August 2014 Kristin Knutsen 19 152 1998 Stainless Short-term TC

June 2014 Bow Tribute 46 000 2014 Coated Bareboat

May 2014 UACC Mansouria 45 352 2013 Coated Short-term TC

April 2014 Bow Trajectory 46 000 2014 Coated Bareboat

April 2014 Bow Harmony 33 619 2008 Stainless Purchase

March 2014 SG Friendship 19 773 2003 Stainless Medium-term TC

Februay 2014 Berlian Ekuator 35 000 cbm 2004 LPG Short-term TC

January 2014 Celsius Mumbai 19 993 2005 Stainless Medium-term TC

December 2013 RT Star 26 199 2011 Stainless Medium-termTC

December 2013 Celsius Miami 19 991 2005 Stainless Medium-termTC

November 2013 Celsius Manhatten 19 807 2006 Stainless Medium-termTC

November 2013 Bow Condor 16 121 2000 Stainless Purchase J/V

October 2013 Bow Eagle 24 700 1988 Stainless Short-termTC

August 2013 Southern Koala 21 290 2010 Stainless Medium-termTC

August 2013 Golden Top 12 705 2004 Stainless Medium-termTC

July 2013 Celsius Mayfair 20 000 2007 Stainless Medium-termTCShort-term: Up to one yearMedium-term: 1-3 yearsLong-term: More than three years

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Fleet development – last 12 months

Fleet disposals, owned DWT Built Tanks Transaction

December 2013 Bow Mate 6 001 1999 Stainless Sale

October 2013 Bow Eagle 24 700 1988 Stainless Sale

Operational review

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Odfjell Gas Carriers – current status

Entered into an agreement with affiliates of Breakwater Capital and Oak Hill Advisors to form a liquefied petroleum gas and ethylene shipping joint venture

Breakwater and Oak Hill Advisors have jointly agreed to invest about USD 50 million as consideration for a 50% equity interest in Odfjell's LPG/E business

Odfjell and our new partners have each agreed to commit about USD 50 million to finance the growth of the joint venture

Options exercised for four additional gas carriers of 22,000 cbm for delivery in 2016-2017

Our new joint venture expected to be effective in September

Revenues and gross result improved in the second quarter, next quarter expect to be in line with this quarter

Operational review

USD mill 2Q14 1Q14

Gross revenue 8 5

EBITDA 1 0

EBIT 1 (1)

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Terminal projects and expansionsOperational review

halloooooooooo

• Expansion project adding 30,000 cbm at the terminal in Houston is estimated to be

completed by 3Q 2014

• The new terminal project in Tianjin is in good progress and planned completed

around year end 2014

OTH bay 9 near completion

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Tank terminal capacity

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Mineral oil storage Chemical storage Ongoing expansions

Current capacity 5,377,750

Ongoing expansions 576,520

Current capacity 5,377,750

Ongoing expansions 576,520

Total capacity in CBM (incl. related parties):

Operational review

* Odfjell’s ownership share in the respective tank terminals is shown in percentage

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Odfjell Terminals (Rotterdam) – current status

Operational review

• One-off charges of USD 11.8 million related re-organisation

• Improved cost base for the terminal going forward

• Reached final agreement with the Unions

• Commercial focus is on improving utilisation and seeking customers for the

available tank capacity

• We expect increased occupancy in the third quarter for the terminal group

(including Rotterdam) as a result of a large new contract being concluded

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OTR Historical EBITDA (100%)

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Reducing cost and improving efficiency

• Initiated a review of all aspects of our business model, including reorganisation

and organisational structures

• Identify areas of improvements

• Ongoing review shows that significant cost and operational profitability are

feasible

• Key decisions will be made in fourth quarter

Market update and prospects

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Market update – chemical tankers

• Time charter result increased by more than 10% in second quarter compared to

first quarter

• Contract and spot volumes increased in the second quarter

• Activity started fairly well this quarter but slowed down from mid-May

• Nominations under contracts are healthy and we are starting to see somewhat

softer bunker prices

Market update and prospects

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Core Chemical Deep-sea Fleet 2003-2017Orderbook and estimated demolition per August 14th, 2014

Source: Odfjell FLEETBASE

Market update and prospects

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Deliveries OrderbookActually demolished Estim. vessel outphasingNet fleet growth

% of year-start fleet

Average annual net growth:2004-2013: 7.5%2014-2017: 4.5%

* Outphasing 30 years (Europe built) and 25 years (Asian built)

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Prospects

• The US trade picture looks better

• European economies are weakening

• Third quarter expected to be in line with second quarter for the chemical tanker

and LPG/Ethylene segments

• The tank terminal segment expects continued stable results and gradually

improving results at OTR

Market update and prospects

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Company representatives

Terje Iversen – CFO, Odfjell SE

Email: [email protected]

Phone: +47 932 40 359

IR – contact:

Tom A. Haugen – VP Finance, Odfjell SE

Email: [email protected]

Phone: +47 905 96 944

Jan A. Hammer – CEO, Odfjell SE

Email: [email protected]

Phone: +47 908 39 719

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Thank you

For more information please visit our webpage at www.odfjell.com