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Interim Financial Report
First Quarter 2024
NORDEN
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HIGHLIGHTS FIRST QUARTER 2024
Results
Business highlights
Guidance
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NORDEN for the first quarter of 2024 generated a net profit of
USD 62 million (USD 150 million)
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Freight Services & Trading generated a loss of USD 630 per vessel
day in the first quarter compared to a five year average margin
of USD 1,166 per day, with positive contribution from the tanker
activities, while the dry cargo activities as expected was impacted
by higher charter costs due to a strong market.
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NORDEN reiterates the full-year guidance for 2024 of a net profit
between USD 150 to 250 million, based on a first quarter result
that was overall in line with expectations. The guidance for 2024
includes gains from sale of vessels from already signed and
agreed transactions of USD 59 million.
EBITDA of USD 92 million (USD 208 million)
Free cash flow of USD -50 million (USD 111 million)
Return on invested capital (LTM) 26%
Earnings per share of DKK 14 (DKK 31)
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Projects and Parcelling continued the positive development
contributing with positive margins to Freight Services & Trading.
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By mid April 2024, NORDEN had a total of 4,171 net open tanker
vessel days for 2024 across both business units. In dry cargo, the
net exposure was a total of 6,618 open vessel days for 2024, with
a neutral position for the remainder of Q2 2024.
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While three of the four business activities in NORDEN contributed
positively to the Group result, as expected the margins in the
dry cargo activities in Freight Services & Trading was temporarily
lower.
The high earnings coverage in Assets & Logistics across both dry
cargo and tankers combined with gains from sale of vessels of
USD 55 million added to a stable high profit in the first quarter.
Earnings in Assets & Logistics are expected to remain stable from
high earnings coverage in both dry cargo and tankers, combined
with an expectation of gradual improvements in margins in
Freight Services & Trading towards the end of the year.
Freight Services & Trading: USD -27 million (USD 67 million)
Assets & Logistics: USD 89 million (USD 83 million)
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Based on a structurally positive market outlook, NORDEN has
continued to expand its deferred Capesize position, adding 4
newbuildings and 2 modern second-hand vessels, bringing the
total owned and leased capesize fleet to 11 vessels.
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The Net asset value (NAV) of Assets & Logistics increased 5.4% to
DKK 372 per share due to underlying positive developments in
asset values and value-enhancing effect from shares bought back.
In line with the policy to distribute min. 50% of the full-year profit
to shareholders, the Board has decided to return USD 30 million
to shareholders for the first quarter of 2024, through an interim
dividend of DKK 2 per share and a share buy-back programme of
USD 21 million, which will run until the end of July.
By end of the quarter the total contracted fleet of owned and
leased vessels was 31 vessels, across dry cargo and tankers
compared to 15 vessels end of first quarter 2023.
“NORDEN generated a net profit of USD 62 million in the first quarter and a ROIC of 26% in the last twelve months. Our tanker
activities performed well, as did our investments in assets, contributing positively to earnings and higher asset values, while as
expected, we faced short-term headwinds from higher charter costs in dry cargo. We maintain our full-year guidance, expecting
gradually higher margins in dry cargo during the year, and will return USD 30 million to shareholders for the first quarter.”
CEO Jan Rindbo
