I have been given the great opportunity to summarize the year that is soon behind us and also give you some guidance of what can be expected in the year to come.
I am first and foremost very thankful and satisfied that we have concluded another year with safe operations and stable performance on board our ships and at our terminals.
It is now also a fact that the financial success that we saw in 2023 continued through 2024. This is important as it allows us to reduce our debt, invest and also prepare our company for the rainy days that we know will come, sooner or later. The good results are also very important for every one of us, as they make Odfjell a more robust workplace.
Sadly, the wars in Europe continue. It is now almost two years since Russia invaded Ukraine and exactly one year since we ceased sailing through the Red Sea due to the war between Israel and Palestine. There are unfortunately no immediate peace solutions in sight, and we will continue to avoid exposure to these conflicts.
Safety is our number one priority—always!
Despite conflicts and wars, climate change remains the biggest threat to humanity by far. Odfjell is committed to contributing to the green transition so that the next generations can be raised in a better world.
Reducing the carbon intensity on our vessels is where we can make the biggest impact. We have already improved our carbon intensity with more than 50% and are determined to improve further. I am therefore very enthusiastic about our sail installation on board Bow Olympus early 2025. It is our belief that this technology will reduce the fuel consumption with up to 10%.
In 2024, two surveys on the work environment were conducted on board our vessels. Both surveys indicate that the work environment can be further improved.
Everyone has the right to be part of an including work environment and I am also a firm believer that a healthy work environment fosters an even higher level of safety awareness. This will therefore be high on our agenda in the year to come.
20% of all stainless steel chemical tankers on order are for Odfjell account. This is a crystal-clear testimony from Odfjell that we are committed to our customers and to our purpose.
We will continue to invest in our core business. The design of our next generation chemical tankers, the so-called "Bow Futurum" class, is nearing completion. These vessels will be unparalleled in terms of energy efficiency and technical solutions. The proof-of-concept phase will start in 2025, and I really look forward to the day when an order for these vessels is announced.
Our terminal division has shown steady progress over many years already: Our safety performance continues to be well above industry standards, and expansion projects are on time and budget. Several new tank pits are under construction, and additional tank pits are in the planning phase. I am also happy to see that there is very good cooperation with all the other Odfjell units. I am very optimistic about the future of Odfjell Terminals!
The world is becoming more and more digitalized and so does Odfjell. At our terminal in Houston, OTH, we are about to finalize the biggest digitalization project in Odfjell's history. Similar projects have been completed both within Ship Management and Odfjell Tankers. Presently, our various platforms are gradually migrated to the cloud, and we have already conducted the first tests of AI (Artificial Intelligence).
The digitalization journey in Odfjell will continue and focus will be on our core processes and improvements within safety and efficiency.
The world is 100% dependent on liquid chemicals. In fact, they form a critical part of every industrialized process that you can think of. Our mission is their safe and timely storage and delivery. This is a responsibility that we do not take easy. Thanks to your efforts, we have established a trust in Odfjell and our services that is unique within our segments. However, trust is not an area where we can rest on our laurels—we are only as good as today’s performance. Customer acceptance and satisfaction will be key to our success also in the year to come.
There are exciting and promising times ahead of us, and I look forward to working together with all of you in 2025. A special thanks to our colleagues on board our vessels and at our terminals who have been on duty for Odfjell and our customers during the holiday.
Best regards
Harald
