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>

<< Nov 2017 >>
MTWTFSS
30 31 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 1 2 3

Maritime Information Warfare 2017

Maritime Information Warfare will focus on the growing need for navies to develop their information exploitation capabilities…

read more >

INTERNATIONAL GREEN SHIPPING AND TECHNOLOGY SUMMIT

The Summit will gather key marine experts and companies around the globe which have a big influence in the industry…

read more >

The CWC 18th Annual World LNG Summit & Awards Evening

The CWC World LNG Summit will continue to give you access to premium networking opportunities as it brings together the who’s who…

read more >

Marintec China 2017

The largest maritime event in Asia Pacific, Marintec China connects maritime professionals from the entire shipbuilding supply chain together.

Over the years, Marintec China has grown to reflect the size and importance of the Asian maritime market. 2015 event is another record-breaking edition with the largest exhibition area and the highest number of industry professionals attending ever. The encouraging figures proven that China remains one of the major shipbuilding nations and Marintec China has been the most authoritative platform in Asia.

With the maritime industry facing great opportunities but also many challenges, it is important for the industry to connect and engage more to ultimately win new business in globally-significant markets. A visit to Marintec China is a great way to learn about the latest technology and innovation of the supply industry, a platform for industry professional to meet face to face, make connection and do business.

Marintec China is poised to be the definitive event and is undoubtedly a must-attend for all involved in the maritime industry.

Marintec China will be held from 5 to 8 December 2017 at the Shanghai New International Expo Centre in Shanghai, China and continue its dedication to serve as the “LEADING” platform “CONNECTING” the community and “STRENGTHENING” the maritime industry.

Marintec China offers the perfect opportunity for companies serving the maritime market to showcase their innovations, products and services to a wide audience. A platform for face to face meetings in business, creating new relationships and consolidating existing ones.

More info

read more >