Interim report - first quarter of 2013


Some highlights:

  • NORDEN concluded the first quarter 2013 with operating earnings (EBITDA) of USD 10 million (USD 50 million). The earnings were generated in a dry cargo market which continues to be marked by excess capacity and very low rates whereas the rate level in Tankers was above expectations.
  • NORDEN's focus on investments in dry cargo vessels has resulted in NORDEN contracting or long-term chartering 13 fuel efficient dry cargo newbuildings in the period from October 2012 to the end of April 2013. Furthermore, the Company contracted 4 MR product tankers in the same period – also fuel efficient newbuildings. The total investments amount to USD 445 million in the form of direct investments and capitalised T/C liabilities.
  • As a result of lower earnings, EBIT constituted a loss of USD 7 million while results for the period were USD -11 million. After the previous year's massive drop in ship values, the curve has now leveled off, and the value of owned vessels, which were owned in the entire period, dropped by 1% during the quarter. The drop is on par with ordinary impairment of the vessels, which are written off over 20 years. 
  • At the end of the quarter, NORDEN's Net Asset Value (NAV) was calculated at DKK 220 per share against DKK 213 per share at the end of 2012, which corresponds to an increase of 3%.
  • NORDEN maintains its expectations for the results for the year with a group EBITDA of USD 15-45 million.


Announcement no. 14


"In the last couple of months, NORDEN has taken advantage of the attractive newbuilding prices to expand the newbuilding programme by a total of 17 fuel efficient vessels. The Company will thus be in a strong position when the markets become more balanced. Scrapping of dry cargo vessels is still at a high level with around 7.5 million dwt. in the first quarter, and we can be pleased that the Tanker Department has generated good earnings in an otherwise bleak first quarter. But as already announced, 2013 will be a very difficult year earnings-wise." President and CEO Carsten Mortensen