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Interim Financial Report
Second Quarter and First Half-Year 2024
NORDEN
5
Strategic scorecard
Update on the Strategic Scorecard
132 million), proceeds from sale of vessels of USD 61 million
(USD 133 million) and change in financial investments (deposits)
of USD 92 million (USD -5 million).
The value creation based on the return on invested capital
(ROIC) since Q3 2019 has been 24% per year and 21% in the last
twelve months, outperforming our target of average min. 12%
per year rolling over five years. The positive returns confirms
the long-term value-creation from an agile and flexible business
model, despite short-term fluctuations in earnings.
Achieved
Target
Value creation
Return on Invested Capital (ROIC)
- avg. Q3 2019-Q2 2024
Rolling five years
Average a min of
Free cash flow was USD -156 million (USD 28 million) negatively
impacted by the lower earnings and higher investments, while
offset by a reduction in net working capital and proceeds from
sale of vessels. Free cash flow for the first half-year was USD -206
million (USD 139 million) affected by the lower operating profit
and higher investments.
12%
24%
per year
Growing the business in a profitable way is a core part of our
strategy and on average we aim at growing the number of vessel
days by 5% CAGR per year. In the last twelve months we have
had a CAGR of 4%, slightly below our target of 5%. However,
since Q3 2018 the CAGR on average has been 7% and we are
thus in line with our long-term target.
Growth
Total number of vessel days
- baseline Q3 2018 - Q2 2019
Rolling five years:
CAGR a min. of
Net cash flow was USD -66 million (USD -98 million) impacted
by cash distribution to shareholders through dividends of USD
9 million (USD 104 million), share buy-backs of USD 21 million
(USD 17 million) and instalments on lease liabilities of USD 82
million (USD 96 million). For the first half-year the net cash flow
was USD -113 million (USD -126 million) with a total distribution
to shareholders of USD 94 million (USD 291 million).
5%
CAGR 7%
per year
During the quarter, the profitability in Freight Services & Trading
as expected has gradually improved from a very low level and
below our average min. target of USD 500 per day. Measuring
the development over the past five years the average margin has
been USD 1,181 per day and for the last twelve months USD -78
per day.
Profitability
Margin per day in FST
- avg. per day Q3 2019-Q2 2024
Rolling five years:
Average a min. of
USD 500
USD 1,181
During the second quarter of 2024, cash and cash equivalents
decreased to USD 284 million (USD 557 million end FY 2023).
Repayment of the outstanding issued bond impacted the cash
position by USD 72 million in Q2 2024. As of 30 June 2024,
NORDEN had committed credit facilities of USD 200 million of
which USD 100 million were undrawn and directly accessible.
Net interest-bearing debt increased to USD 329 million
compared to USD 45 million by end of full-year 2023.
per day
Decarbonisation
Reduction in emission
intensity (EEOI)
Target by 2030 latest:
Reduction a min. of.
On the decarbonisation initiatives we have reduced the EEOI
by 15% by end of June 2024 compared to our baseline in 2022,
confirming that we are on track to deliver on the 2030-target of
min. 16%. Fleet renewals in the Capesize segment and investing
in fuel efficiency through paint upgrades and other initiatives
added positively to the development.
– baseline FY 2022
16%
15%
NORDEN shareholders’ share of equity on 30 June 2024 was
USD 1,247 million (USD 1,198 million end FY 2023) reflecting the
positive net profit for the period and allocation to shareholders
during the quarter. The solvency ratio, excluding non-controlling
interest, was 54% by the end of June 2024 compared to 51% by
the end of full-year 2023.
Shareholder returns
Total shareholder returns (TSR)
- avg. Q3 2019-Q2 2024
Rolling five years:
Average a min. of
While targeting a total shareholder returns (TSR) of min. 10% per
year on average, the returns in the past twelve months have been
negative by 2%. NORDEN have in the past five years generated a
positive return of 416% or 39% per year.
10%
39%
per year
