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Norden reports a strong second quarter for dry cargo

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Dry Bulk,

Based on these results, NORDEN appears well-positioned towards improving markets in both dry cargo and tankers in the future.

Second quarter and first half-year of 2017

Results adjusted result for 2Q17: US$3 million (2Q16: US$4 million).

  • Dry cargo: US$7 million (US$11 million).
  • Tankers: US$3 million (US$7 million) Group EBIT 2Q17: US$ - 3 million (US$ 34 million) Markets.
  • Dry cargo: increase in year-on-year Chinese imports continues to support improving markets.
  • Tankers: Deteriorating markets throughout the quarter Performance NORDEN TCE vs. benchmark.
  • Dry Cargo: +28%.
  • Tankers: +13% Cover and capacity rest of year.
  • Dry Cargo: 88% coverage. 2229 open days for the rest of the year.
  • Tankers: 22% coverage. 6108 open days for the rest of the year.
  • Dry Cargo: -3%
  • Tankers: Unchanged Guidance Expectations for the adjusted results for the year are narrowed within the guidance previously announced to US$20 to 20 million.

CEO Jan Rindbo commented:

“In Dry Cargo, the gradual recovery in both market conditions and our earnings continues, although still at loss-making levels. Strategically we are building a strong platform for increased value generation in Dry Cargo through the split into two distinct dry cargo business units: Operator and Owner. In Tankers, NORDEN made the best of a very challenging market generating a profit and increasing the capacity at attractive cost levels. Combined with continued annual operational cost savings and highly skilled employees, NORDEN is thereby well-positioned towards improving markets in both dry cargo and tankers in the future.”

Strategy update

  • New focused Dry Cargo operator platform launched.
  • Greater transparency on value creation in Dry Cargo.

Significant expansion of tanker capacity

Dry Cargo Operator

Dry Cargo Operator handles NORDEN’s short-term dry cargo activities. The objective of Dry Cargo Operator is to create value through logistical optimisation of vessels and cargoes, exploiting arbitrage opportunities and taking short-term freight trading positions. Within defined exposure limits, Dry Cargo Operator can be either long or short and thereby be able to generate positive earnings regardless of market direction and market level. To support the ambition, Dry Cargo Operator has gone through a major overhaul and been reorganised into smaller, more specialised teams with increased agility and authority with the aim of becoming even better at servicing customers and attracting business. The new set-up is also intended to promote a new mindset with focus on fast decision-making in a setting with comprehensive and professional support from the organisation. Key success criteria for Dry Cargo Operator include utilisation of the new focused set-up to strengthen customer, shipbroker and vessel owner relations, having clear and transparent risk management, more in-depth short-term market analysis and increased fuel efficiency awareness to optimise vessel operations.

Dry Cargo Owner

The Dry Cargo Owner part of NORDEN will include all activities related to owned vessels, vessels chartered in for longer periods as well as long-term cover contracts. All vessel capacity within Dry Cargo Owner which is not covered on time charter or cargo contracts will be chartered to Dry Cargo Operator at market rates. Hence, the Dry Cargo Owner segment will contain NORDEN’s overall cyclical market exposure within dry cargo, and the objective of Dry Cargo Owner is to create value over a cycle through timing, identifying and negotiating attractive deals, competitive technical management and fuel efficiency.


During the first half of 2017, NORDEN has continued the execution of its strategy Focus and Simplicity, which for Dry Cargo includes establishment of a new focused operator platform for the short-term operator activities and increased transparency within value creation. There has been no change to the overall strategy within Tankers, rather a focus on exploiting cyclical markets by taking advantage of lower market levels to increase capacity. A key method to increase transparency within value creation in NORDEN’s Dry Cargo business is splitting the business into two distinct business units; Dry Cargo Operator and Dry Cargo Owner with individual financial reporting. Operator performance will be reported starting with the 2017 third quarter report.

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