Annual Report 2011 and Expectations for 2012


Some highlights:

Annual Report for 2011

  • Earnings-wise, the fourth quarter was the best quarter of the year with operating earnings (EBITDA) of USD 62 million (+61%). Both Dry Cargo and Tankers increased the business scope and improved earnings compared to the fourth quarter of 2010.
  • In a volatile market, Dry Cargo generated an EBITDA of USD 60 million in the fourth quarter, which was better than expected. Tankers generated an EBITDA for the fourth quarter of USD 4 million as expected.
  • Despite increasing depreciation, EBIT for the quarter improved and amounted to USD 39 million.
  • EBITDA for the year amounted to USD 186 million, whereas the latest estimate was USD 160-180 million. Adjusted for non-recurring income, EBITDA increased compared to 2010.
  • EBITDA for the year in Dry Cargo of USD 171 million was better than expected. Adjusted for non-recurring income, EBITDA in Dry Cargo decreased by 7% compared to 2010, whereas the spot rates dropped by 44%. As expected, EBITDA in Tankers was improved from 0 to USD 26 million.
  • At USD 104 million, the operating profit (EBIT) was better than expected. Based on the net profit for the year of USD 88 million, the Board of Directors proposes a dividend of DKK 4 per share, totalling USD 30 million.

Expectations for 2012

  • The dry cargo market is expected to be very challenging in 2012 due to high yet declining fleet growth. NORDEN has positioned itself accordingly with 86% of known ship days covered mid-February. Tankers has positioned itself for an expectedly better market with coverage of 25% mid-February.
  • In 2012, NORDEN expects an EBITDA of USD 110-150 million with somewhat lower earnings in Dry Cargo (USD 85-125 million) and increasing earnings in Tankers (USD 25-45 million). After depreciation of USD 100-105 million and without profits from the sale of vessels, EBIT is expected to amount to USD 10-50 million. 


CEO Carsten Mortensen in comment: ”We came out of 2011 better than expected in spite of the difficult conditions. Though you should never write off the dry cargo market, 2012 is appearing even more difficult, and we will therefore maintain strict cost control and risk management. But as spot rates in dry cargo are expected to bottom out this year, we also continue working with our growth strategy and thoroughly analyse when to begin making new investments in both Dry Cargo and Tankers.” 


Announcement no. 4