Attached please find the full report as PDF file.
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Announcement no. 19
17 August 2016
Interim report – Second quarter and first half-year of 2016
Today, the Board of Directors approved the interim report for the second quarter and first half-year of 2016. The full report is attached as PDF file and contains the following highlights:
• Adjusted result for the period Q2 2016: USD -4 million (Q2 2015: USD 29 million). H1 2016: USD -9 million.
• EBIT Q2 2016: USD -34 million (USD 36 million), of which vessel sales make up USD -34 million.
• Minor improvements in a still weak dry cargo market driven by an increase in Chinese imports of especially iron ore and coal. Adjusted result for the period Q2: USD -11 million (USD 4 million).
• Tanker market weaker than expected. Adjusted result for the period Q2: USD 7 million (USD 25 million).
• Cash flows from operating activities Q2: USD -16 million (USD 65 million).
• Cash and securities: USD 345 million (USD 340 million).
• Average NORDEN TCE earnings still above benchmark: Dry Cargo: +31% and Tankers: +14%.
• Ship values: Slightly upward trend in Dry Cargo over the quarter – drop in the tanker segment. Total decrease of 3%.
• Expectations for the adjusted results for the year are narrowed within the guidance previously announced to USD -60 to -20 million.
CEO Jan Rindbo in comment:
”NORDEN maintains its focus in Dry Cargo on the vessel types Supramax and Panamax. We have sold all our Capesize and Post-Panamax vessels, disposed of 4 Handysize vessels and in return bought 1 and long-term chartered 3 Supramax vessels. At the same time, we have further increased our short-term chartering of dry cargo vessels and adjusted our exposure to a tanker market where the rates, earlier than expected, have dropped significantly. Together with NORDEN’s cost focus, we are therefore well prepared for a dry cargo market which, despite slight improvements in the second quarter, still looks challenging and a tanker market which is expected to offer weaker rates in the second half-year compared to the second quarter. ”
A telephone conference will be held today at 3:30 p.m. (CET), where CEO Jan Rindbo and CFO Martin Badsted will comment on the report. It is requested that all participants have joined the meeting by latest 3:25 p.m. (CET) - Danish participants please dial in on +45 3848 7513, overseas participants please dial in on +44 (0)20 3427 0503 or +1 646 254 3365. The telephone conference will be shown live at www.ds-norden.com, where the accompanying presentation will also be available.
For further information: CEO Jan Rindbo, tel. +45 3315 0451
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DAMPSKIBSSELSKABET NORDEN A/S, 52, STRANDVEJEN, DK-2900 HELLERUP, CVR NO. 67758919
