29-06-2021 Norden raises full-year guidance for fourth time, By Nidaa Bakhsh, Lloyd’s List
Norden, a Danish owner and operator of dry bulk carriers and tankers, has raised its profits guidance for the fourth time this year. The company said it raised its adjusted result expectation to $140m-$200m, given continued increases in dry bulk freight rates combined with a strong performance in its dry operator unit. Its previous forecast, which had been revised in early June, was $110m-$160m.
The new guidance was based on significant gains in forward freight rates for the last two quarters of the year, while the broader range reflects the fact that earnings expectations are based on a currently large position held in a dry cargo market with unusually high volatility, and which is mainly based on unrealized future earnings, it said.
Supramaxes and Panamaxes, the size categories in which Norden operates, gained about $10,000 per day since the end of May. Rates in the last week alone have increased $2,750 per day, the company said.
Chief executive Jan Rindbo said: “With significant rate increases in recent weeks and especially in the last few days, expected future earnings continue to increase based on Dry Operator’s long position (more tonnage than cargoes). The operational performance in our Dry Operator business unit enables us to continuously leverage the market volatility as well as the daily utilization of vessels.”
From an earnings perspective, Norden’s other business units — Asset Management and Tanker Operator — are developing in line with previously announced expectations, the company said, adding that portfolio values are also rising in line with the stronger dry bulk market.