Norden in Fleet Optimization Mode

Copenhagen-listed shipowner Dampskibsselskabet Norden A/S (Norden) has continued to overhaul its fleet during the first three months of the year with several sales and purchase deals reported.

As parts of its efforts to focus on Panamax and Supramax ships, the company sold two vessels, the 2006-built Supramax Nord Maru, and one Handysize, the 2010-built Nord Seoul.

Norden also said that Nord Auckland Handysize was sold after the end of March.

On the other hand, Norden took delivery of three Panamax newbuildings, out of which one was previously sold and delivered directly to its new owners.

With regard to the time charter portfolio, the company hired five ships on 2-3-year contracts with purchase options and period optionality.

Furthermore, the company confirmed the purchase of two 2009-built secondhand MR product tankers in April.

In general, the company described its first quarter as being “off to a good start”, having posted an adjusted result of USD 9 million, against last year’s USD 1 million in an improving dry cargo market and an unusually weak tanker winter market.

”The dry operator business unit continued to deliver a profitable performance in a first quarter market characterized by seasonal weakening. In addition to profit taking in regional markets, dry operator invested in the positioning of vessels into the Atlantic, which we will benefit from in the second quarter.

“The tanker business once again outperformed the market generating a break-even result, and Norden maintains the full-year expectations despite increased uncertainty for demand growth due to rising global trade tensions. With low fleet growth and agile business units, Norden is well positioned to make the most of the markets regardless of this,” Norden’s CEO Jan Rindbo said commenting on the results.