Norden Swings to Q1 Loss amid Dry Cargo Woes

Image Courtesy: Norden

Miserable conditions in the dry bulk market have pushed Danish shipping company Dampskibsselskabet NORDEN A/S (Norden) to a loss of USD 5 million in the first quarter of 2016, compared to a profit of USD 27 million in the same period last year. 

The company’s operating earnings also reached a loss of USD 1 million.

In February this year, the Baltic Dry Index plunged to the lowest index figure ever, contributing to a loss of USD 19.8m during the first quarter in Norden’s dry cargo segment.

However, despite the market headwinds Norden’s dry cargo vessels managed to achieve earnings that were 37 percent above the market average. Nevertheless, the adjusted result for the period in dry cargo market ended at a loss of USD 20 million, corresponding to operating earnings loss of USD 17 million.

The company’s results in the tanker market were somewhat better, with an adjusted result of USD 15 million, corresponding to operating earnings of USD 16 million.

“NORDEN’s tanker business still brings home reasonable results, which contributes to cushion the effects of a historically poor quarter in the dry cargo market. The dry cargo index the Baltic Dry Index reached a new low in February, and despite a record number of scrapping of dry cargo vessels, this could not make up for the many deliveries of new vessels. Based on the increase in Chinese imports, the dry cargo market saw a slight improvement in March,” CEO Jan Rindbo comments.

For the remainder of the year, the company says it still expects challenging times in the dry cargo segment, adding that it is prepared for the situation where many new tanker vessels will put pressure on the rates, although the demand for oil is growing.

In line with previous expectations, Norden forecasts the adjusted results for the year to range between USD -60 to USD 30 million.

The company’s fleet totaled in 275 vessels at the end of Q1, which is 47 vessels more than at the end of 2015.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Mar 2017 >>
MTWTFSS
27 28 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31 1 2

Breakbulk Europe 2017

For more than a decade, Breakbulk Europe has served as the networking hub for industry professionals who do business in Europe — or would like to! Exhibitors and sponsors include cargo owners, ocean carriers, freight forwarders, ports/terminals, heavy haulers, equipment companies and more that are involved in this specialized industry.

In addition to exceptional networking opportunities, Breakbulk Europe provides a dynamic conference, along with a range of educational and training workshops — intensive all-day classes held the day before the exhibition opens as well as many on-the-floor sessions.

  • Over 7,600 participants attended Breakbulk Europe 2016
  • Meet with over 400 exhibitors and sponsors
  • Hear from industry experts, including leading shippers, during the conference sessions
  • Learn new skills in the educational workshops held before the exhibition and on-the-floor micro-seminars and exhibitor-led sessions during the event

More info

read more >

Ferries Asia Summit

Propelling Regional Waterway Connectivity & Fleet-wide Operational Excellence

Ferry travel is in the limelight. The potential for driving tourism growth is immense – and for archipelago nations battling with urban congestion, ferry services pose a clean, efficient alternative in everyday public transport. But high-profile ferry accidents have brought ever greater attention to safety regulations for Asia’s maritime travel industry.

Amid these circumstances, how can vessel operators cope with ever-tightening safety requirements, while making the right decisions at the right time to capture rising demand? What are the smartest ways to improve service reliability and fleet quality, that maximize operating and capital spend? What are the industry’s best-practices for sustainable growth, and how can they be achieved?

Play your part! Join us at the Ferries Asia Summit 2017 to push forward the regional debate on making Asia’s ferry industry more progressive, safe, and commercially sustainable. Bringing together fast-ferry, RO-RO and ROPAX vessel owners along with international and domestic maritime regulators, classification agencies, shipbuilders and naval architects, this event connects the entire value chain for a meaningful holistic debate on ferry operations excellence in Asia.

WHAT’S ON THE AGENDA THIS YEAR?

Comprehensive debates on addressing the complexity of ferry safety in Asia: Is vessel age truly the greatest concern? How significant are other factors, and how can they be addressed?

Pathways to change through greater public-private collaboration

Contrasting viewpoints on the most effective ways to enhance operational stability & passenger management

Cost-efficient O&M strategies to extend vessel life & tips for stakeholder management to avoid purchasing mistakes

Integrating ferry business with tourism opportunities through strategic partnerships

Exciting formats including speed networking, panel discussions & a high-intensity fast-pitch ‘Shark Tank’!

For more information, click here to download the brochure.
If you would like to attend the event, register here before 3rd February to save USD 400.
Alternatively, email us at enquiry@iqpc.com.sg 
for any enquiries regarding the event.

More info

read more >

INMEX Vietnam 2017

The event is an exceptional meeting point for the global maritime community in Vietnam, a region where the industry remains buoyant and strong…

read more >

Singapore Maritime Week 2017

Singapore Maritime Week (SMW) is the leading maritime event in Singapore. Driven by the Maritime and Port Authority of Singapore (MPA), SMW…

read more >