Results generated by Norden’s operated fleet of bulk carriers have led to the Danish firm booking its best annual result in 11 years. The Copenhagen-listed firm recorded annual profit of $205m for the full year 2021, which was also the year of its 150th anniversary. Return on equity in 2021 was 22%. The company, which owns and operates product tankers and small to midsize bulkers, booked $86m in profit for the full year 2020. Chief executive Jan Rindbo said the 2021 result was generated by “active trading, record-high activity levels and good execution in a strong dry cargo market. Norden continues to deliver profitable growth, and we are pleased to share this great result with Norden’s shareholders with a proposed dividend of DKK 18 per share [$2.68].”

He said the company expects even higher annual profit for 2022, which could fall between $210m and $280m. Norden has been busy expanding its range of services. Earlier this month, it revealed that it is growing its port logistics business by operating a transshipment facility for manganese mining company Comilog in Gabon. It has also expanded its parceling services. During the fourth quarter, Norden booked $123m in profit, up from just $3m in the final three months of 2020. Most of this quarterly result was generated by Norden’s operated fleet of bulk carriers. The dry operator business unit made $128m in profit during the final quarter, up from $27m in the same period of 2020. Norden said the “outstanding result” was generated by capitalizing on tonnage it took on charter at lower rates during the first half of 2021, “combined with good execution across regions and vessel types”.

Earnings for product tankers, however, continued to be poor and Norden’s tanker operator unit recorded an $8m loss during the fourth quarter. Its asset management unit, which handles its owned vessels, made a $3m profit. This is up from a $13m loss during the fourth quarter of 2020. Norden said it was able to seize on higher bulker values and sold four dry-cargo vessels during the period. It also replaced two older tankers with two MR product tankers acquired in the second-hand market. Anders Redigh Karlsen, head of shipping at financial services firm Kepler Cheuvreux, said Norden’s upsized profit guidance for 2022 came in “well above” his firm’s expectations. Kepler Cheuvreux had previously expected Norden to book around $113m in profit for 2022, which is $3m more than the consensus estimate. Karlsen said he expects to see a “clear positive” reaction in Norden’s share price, following the new guidance.

He also pointed to the mixture of positive and negative factors that conflict in Ukraine could have for Norden’s business. “The situation in Ukraine will lead to volatile markets ahead both for dry cargo and product tankers. In our view, we could see a potential near-term negative effect from the loss of exports of grain in the dry cargo space,” he said in a note on Thursday. “For the product tankers, we foresee demand from the current situation leading to a positive shift in rates.”