Norden net profit of 217 mio dollar
SHIPPING: With a net profit of 217 million dollar for 2009 as a whole, Nordens result was in line with the most recent announced expectations. The netprofit represents a return on equity of 12.4%. Norden plans to increase activities within both its segments in 2010.
Earnings for the year were above the spot rates for the most significant vessel types in Dry Cargo and Tankers. EBIT amounted to 157 million dollar, which is at the high end of the most recent forecast interval of 150-160 million dollars.
The Board of Directors proposes a dividend of 7 kroner per share. This corresponds to approximately 25% of the net profit being distributed to the shareholders (excluding treasury shares).
As expected, the fourth quarter was the best of the year affirming the positive trend in operating earnings, seen throughout the year.
The earnings growth in the fourth quarter was generated by the Dry Cargo Department, whereas earnings in the Tanker Department were affected by the poor spot rates during most of the quarter.
A credit facility of 200 million dollar is expected to be finalised in the second quarter of 2010 and will provide the Company with added flexibility to pursue attractive investment opportunities.
A settlement with RTI will provide NORDEN with a cash payment of USD 23 million and a contract of 2 million tonnes of cargo. The settlement has been included in the outlook for 2010.
Norden
plans to increase activities within both segments in 2010. EBITDA in Dry Cargo is expected to increase to 190-220 million dollars, EBITDA in Tankers is expected to decrease to negative 5-25 million dollars, and Norden's EBITDA is expected to increase to 155-205 million ollars. EBIT is expected to amount to 135-185 million dollars due to fewer known profits from the sale of vessels and increased depreciation on a growing fleet of owned vessels.
Coverage for both 2010 and 2011 has increased since the turn of the year. At the beginning of March the Dry Cargo coverage was at 79%, and the tanker coverage at 43%.
Source: Norden
