Interim report - second quarter and first half-year of 2018 and video: NORDEN Update


Some highlights:

Second quarter of 2018

  • Adjusted Result* for Q2 2018:
  • USD 4 million (Q2 2017: USD -3 million)
  • Dry Operator: USD 8 million
  • Dry Owner: USD 3 million
  • Tankers: USD -8 million (USD 3 million)
  • EBIT Q2 2018:
  • USD 8 million (USD -3 million)

* ”Profit/loss for the period” adjusted for “Profit from sale of vessels etc.”


Expectations for 2018

  • NORDEN expects the dry cargo market to improve in the fourth quarter. Dry Owner is fully covered for the rest of 2018, as NORDEN’s short-term dry cargo exposure is now managed in Dry Operator, which is well positioned to benefit from short-term rate improvements. In Tankers, however, rates have been lower than expected and a significant improvement in rates is not expected until 2019. On that basis, expectations for the Adjusted Result for the year were on 8 August revised to USD 0 to 30 million (previous USD 10 to 50 million).


Weak tanker market and strong performance in Dry Operator

“Good performance in the dry cargo business cannot make up for the tanker market conditions that are worse than expected. On that basis, the overall expectations for the Adjusted Result for the year were revised downwards on 8 August. In the second quarter of 2018, Dry Operator and Dry Owner together generated a positive result of USD 11 million which outweighs the loss generated by the tanker business operating in one of the most challenging tanker markets in a decade. During the first 12 months since being established as a separate business unit, Dry Operator has now generated a very satisfactory result of USD 23 million, highlighting the potential of this asset light business unit.” CEO Jan Rindbo

Announcement no. 11