Danish shipping company Norden wrapped up 2019 with profit that was driven by a strong performance in the fourth quarter.
The adjusted result for Norden in Q4 2019 amounted to USD 31 million, making it “the best quarter of the year and the best since Q2 2015.”
Profit for the quarter stood at at USD 32.4 million, including gains on the sale of vessels of USD 1 million. This represented an increase of almost 68 percent when compared to USD 19.3 million seen in the corresponding period a year earlier.
For the full year, the adjusted result stood at USD 23 million, compared to USD 20 million recorded in 2018. EBITDA rose to USD 217.5 million in 2019 from USD 72.5 million in 2018.
The profit for the year was USD 19 million, which includes loss from sale of vessels of USD 4 million, compared to USD 28.8 million reported in 2018.
According to Jan Rindbo, Norden’s CEO, this is the third consecutive year of profit for the company, driven by a strong adjusted result in the fourth quarter.
During the year, Norden’s business unit Dry Operator generated an adjusted result of USD 8 million. After a challenging period in mid-2019, Dry Operator successfully navigated a market in strong decline in the fourth quarter.
In Dry Owner business unit, despite reduced revenue days due to off-hire in connection with the installation of scrubbers, the unit generated an adjusted result of USD 2 million, benefiting from high coverage.
In a year with high volatility in product tanker rates, Norden’s Tanker business generated an Adjusted Result of USD 13 million. After a period with very poor market conditions in the middle of the year, the tanker market improved significantly towards the end of the year.
“Despite challenging markets and an uncertain outlook due to the outbreak of the COVID-19 virus, NORDEN expects to deliver improved earnings with an expected adjusted result for 2020 in the range of USD 30 to 70 million,” Norden’s CEO concluded.