Interim report - first half of 2014


Some highlights:

  • EBITDA Q2 2014 USD -7 million (Q2 2013: USD 4 million)
  • Results for the period H1 2014: USD -68 million (H1 2013: USD -34 million), which is unsatisfactory
  • The weak dry cargo market continued
  • Dry Cargo earnings 1% above the average 1-year T/C rates and 57% above Baltic Exchange spot rates
  • Disappointing tanker market
  • Market value of owned vessels USD 94 million above carrying amounts
  • Strategy adjusted to the unsatisfactory market development:
    • Activity level reduced by fewer operated vessels
    • No further investments in the second quarter of 2014
  • Some improvement in rates towards the end of the year is expected in both segments
  • Expectations for 2014 EBITDA are adjusted downwards to USD -60 to 0 million (USD -40 to 60 million). 


”The second quarter was more challenging than expected at the beginning of the year, and the 2014 markets have not yet met the expectations of a gradual improvement – neither within dry cargo nor tankers. But despite a significant worsening in the dry cargo market in the second quarter, NORDEN improved its Dry Cargo results compared to the first quarter. At the same time, NORDEN has taken advantage of the flexibility of the business model and reduced the fleet. The market rates are still expected to improve towards the end of the year but not to such an extent that we can maintain our previous expectations for the results for the year. Based on this, NORDEN makes a downward adjustment of its expectations to an EBITDA of USD -60 to 0 million.” Interim CEO Klaus Nyborg


Announcement no. 34