ANNOUNCEMENT NO. 20 - 19 AUGUST 2020
Attached please find the full interim report as PDF file
Today, the Board of Directors approved the interim report for the second quarter of 2020. The report contains the following highlights:
Adjusted Result* for Q2 2020: USD 29 (Q2 2019: USD -12 million)
- Assset Management: USD 11 million (USD -3 million)
- Dry Operator: USD -4 million (USD -6 million)
- Tanker Operator: USD 22 million (USD -3 million)
Adjusted Result for H1 2020: USD 58 million (H1 2019: USD -5 million)
*”Profit/loss for the period” adjusted for “Profit from sale of vessels etc.”
- Asset prices affected by market uncertainty and declined significantly during the quarter.
- Dry Cargo: Very weak spot market with Supramax and Panamax rates 34% lower than Q2 2019
- Tankers: Significant spike in spot rates in April and May due to oil price war. However, spot rates quickly dropped towards the end of the quarter
- Asset Management: Benefitting from high coverage in Dry Cargo and increased exposure to tanker market. Utilising weak markets for attractive asset trading. Established joint venture to handle technical management of NORDEN’s tanker fleet.
- Dry Operator: Satisfactory performance given the unprecedented market disruptions.
- Tanker Operator: Outstanding result due to rate spike and active position management
Change in value of NORDEN’s owned vessels and newbuildings: -5%
NORDEN raises its expectations for the full-year Adjusted Result to USD 40-80 million (previously USD 30-80 million). This is based on higher expectations for the Dry Operator business unit.
The Board of Directors has decided to initiate a share buy-back programme of up to USD 10 million, which will be announced separately.
“In a first half-year with extreme market volatility, NORDEN delivered a strong result while acting on attractive dry cargo asset opportunities. Tanker Operator delivered an outstanding result, but H2 2020 earnings are expected to be much weaker due to lower rates. Dry Operator navigated well through severe market headwinds and is expected to generate substantial value in H2 2020. NORDEN raises its guidance for 2020 to USD 40-80 million.”
CEO Jan Rindbo
A telephone conference will be held today at 10:30 a.m. (CET), where CEO Jan Rindbo and CFO Martin Badsted will comment on the interim report. It is requested that all participants have joined the meeting by latest 10:25 a.m. (CET) – international participants please dial in on +44 (0) 207 769 6470 or +1 718 354 1229, Danish participants please dial in on +45 7026 5045. Passcode is 5256489#. The accompanying presentation will be available on NORDEN’s website.
For further information:
Jan Rindbo, CEO, tel.: +45 3315 0451