Norden's profit was the best to date
The net profit for the year was up approximately 1 pct. to USD 708 million or DKK 3,609 million. The Tanker Department achieved its highest operating profit to date, whereas the Dry Cargo fourth quarter earnings were heavily impacted by the dry cargo market meltdown.
Nordens total EBITDA dropped by 6 pct. to USD 506 million. Profits from the sale of vessels, etc. rose by 78 pct. to USD 290 million, contributing to an increase of 13 pct. in Nordens operating profit (EBIT) to USD 773 million.
At 1 March 2009, Norden had secured employment of 101 pct. of the year's ship days in Dry Cargo, whereas the coverage in Tankers was 35 pct.
The economic crisis has caused significant uncertainty and affected customers in both segments. Although the known capacity in Dry Cargo has been covered, it is uncertain to what extent the Company's cargo programme and contracted T/C income will actually be realised if the current very low market rates and demand for key commodities prevail. The Tanker Department's market outlook is also subject to significant uncertainty.
The Company has allowed for this uncertainty by indicating wider margins than normally for expected earnings. Expected EBITDA is USD 100-340 million (USD 100-300 million in Dry Cargo and USD 20-50 million in Tankers). Expected profits from the sale of vessels are USD 25 million, and expected EBIT is USD 85-325 million.
Source: Norden
