Norden posted a strong profit
SHIPPING: Norden posted an operating profit for the first half-year of 179 million dollar, against 44 million dollar in the first half-year of 2009. In the second quarter, Nordens's operating profit increased by 246% to 100 million dollar.
"The solid operating profit and the new upward adjustment confirm that we have put Norden back on the growth track after last year's adjustments of the business. The Company is well prepared to handle the challenges and opportunities that may arise in the dry cargo and tanker market in the short term", says President and CEO Carsten Mortensen.
The Company expanded its activities in Dry Cargo, and with high coverage at good rates, the Dry Cargo Department increased earnings for the sixth consecutive quarter even though the market gradually weakened. In Tankers, revenue from coverage contributed to a result close to zero in a continued weak market.
Based on the good results in the first half-year and high coverage, Norden raises its expectations to an EBITDA of 240 - 270 million dollar (previously 200 - 250 million dollar and an EBIT of 225 - 255 million dollar (previously 185 - 235 million dollar).
At the beginning of the quarter, Norden acquired 2 product tankers at a value of 53 million dollar and shortly afterwards sold 4 Handysize dry cargo vessels, of which 2 were newbuildings, at a total value of 110 million dollar. Norden continuously optimises the portfolio of owned vessels and newbuildings on the basis of the development in the market for quality tonnage. In Dry Cargo, Norden exercised purchase options on 1 Panamax and 1 Handymax at the beginning of July. The vessels are expected to be taken over in September at a total price of 59 million dollar.
After investments in new vessels and payment of dividend, the financial position is still strong, and the Company is well prepared to take advantage of future investment opportunities. At the end of the quarter, Norden had cash and cash equivalents and securities of 712 million dollar, and to this should be added 158 million dollar in net proceeds from non-settled sales of vessels for delivery in the second half-year of 2010. In comparison, there are outstanding payments on the newbuilding programme of 452 million dollar, which fall due in 2010-2012.
Source: Norden / maritimedanmark.dk
