Strong bulk market leads Norden to raises expectations again

(Posted on 01/07/21)

Following increases in dry cargo market rates and strong performance in the Dry Operator business unit, NORDEN has raised its expectations for the full-year 2021, Adjusted Result to USD 140-200 million (approximately DKK 870-1,250 million), up from USD 110-160 million.

The new guidance is based on continued increases in forward freight rates for Q3 and Q4 in the dry cargo market, which for Supramax and Panamax vessels have increased by about USD 10,000 per day since end of May, and by about USD 2,750 per day in just the last week.

The broader guidance 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 unrealised future earnings.

CEO, 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 utilisation of vessels”, says Jan Rindbo, CEO of NORDEN.

From an earnings perspective, NORDEN’s two other business units, Asset Management and Tanker Operator, are developing in line with previously announced expectations. However, the portfolio values of Asset Management are increasing in line with higher dry cargo asset values and higher dry cargo forward rates.”

NORDEN was founded in 1871, making it one of the oldest internationally operating shipping companies.