NORDEN confident of improved year

Nov 10 2017


Drybulk and tanker owner NORDEN has reported an adjusted third quarter 2017 result of $4 mill, compared with a loss of $12 mill in 3Q16.

EBIT was minus $2 mill, compared with minus $13 mill last year.

Drycargo division came in at $5 mill, compared with a loss of $8 mill in the same period last year, while the tanker division recorded an adjusted net loss of $1 mill, compared with a loss of $4 mill in 3Q16.

Both the drycargo and tanker markets are expected to gradually improve in 2018 based on lower supply growth, the company said.

During the quarter, tankers produced earnings of 16% above the benchmark, which was close to breakeven in a challenging market.

In 3Q17, NORDEN utilised the attractive timecharter rates to continue its expansion of both long- and short-term tanker capacity. This translated into 2 long-term charter agreements of 2 MR tanker newbuildings scheduled to deliver in mid-2020 as well as short-term time charters of 4 MR tankers delivered during the third quarter of 2017.

In addition, the two secondhand MRs purchased in 2Q17 were delivered to NORDEN during August, and both vessels are now operating in the Norient Product Pool.

The company said that expectations for the adjusted results for the full year were raised to $ -10 to 30 mill from $-20 to $20 mill, as a result of higher expected dry cargo earnings.

CEO Jan Rindbo said: “NORDEN is well positioned to benefit from the recent significant improvements in the drycargo market and raises the expectations for the overall full-year results of the company.

“With a new focused operator platform for the short-term operator activity in drycargo and a tanker business that continues to outperform the market and has increased the capacity at attractive levels, the conditions for an improved result for the year are now in place.”

 



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