Wednesday, August 18, 2010

Dry Freight And Tanker Shipping Line Release First Half Figures

Danish Group Announce Profits
Shipping News Feature

DENMARK – Norden A/S, which operates a fleet of 116 dry cargo vessels from Handysize under 25,000 dead weight tonnes up to Capesize ships exceeding 180,000 tonnes plus a product tanker fleet of around 70 ships with various new builds on order, have issued their interim figures for the first half of 2010, and they make interesting reading for anyone who wishes an insight into dry bulk shipping over the past few months in particular. The pool fleet includes the activities of Interorient Navigation Company Ltd.

The primary operating profit (EBIT) increased by 91% to $86 million. The net profit was $83 million after fair value adjustments of certain hedging instruments. In the second quarter, NORDEN's operating profit (EBITDA) increased by 246% to USD 100 million. This includes compensation of USD 41 million for cancellation of a charter party. The operating profit for the first half-year was USD 179 million against USD 44 million in the first half-year of 2009.

The Company expanded its activities in Dry Cargo, and with high coverage at good rates, the Dry Cargo Department increased earnings for the sixth consecutive quarter even though the market gradually weakened. In Tankers, revenue from coverage contributed to a result close to zero in a continued weak market.President and CEO Carsten Mortensen says in a comment on the report:

“The solid operating profit and the new upward adjustment confirm that we have put NORDEN back on the growth track after last year's adjustments of the business. The Company is well prepared to handle the challenges and opportunities that may arise in the dry cargo and tanker market in the short term.”

Following his statement Mr Mortensen announced, in accordance with the requirements of the Danish Securities Trading Act, that he was to purchase a further 4,250 shares in Norden A/S on the NASDAQ OMX Copenhagen Exchange (for around $168,500), taking his holding to 30,490 shares in the company.

Shares rose around $0.86 after the figures were released.

Photo: ‘Norden Prince’ in Sydney harbour