Norden Ups Its Expectations
- Business & Finance
Danish shipping company Dampskibsselskabet NORDEN A/S has raised its expectations for the EBIT result for 2015 to USD 50-90 million against previously expected USD -40 to 40 million.
The upward adjustment is a result of a tanker market which continues to be influenced by a broadly based upswing with strong rates in all regions.
On that background, Norden said that its tanker business is expected to generate an EBIT result of USD 75-100 million against previously expected USD 35-65 million.
Furthermore, Norden’s dry cargo department has secured higher earnings than expected at the beginning of the year, even though the first months of 2015 offered a historically poor dry cargo market.
Norden said that its dry cargo arm is now expected to generate an EBIT result of USD -25 to 0 million against previously expected USD -60 to 0 million.
“Fleet values in dry cargo continue to be under pressure as a result of the challenging markets, and the company will perform a routine impairment test in connection with the publication of the interim report for the first half-year,” the company added.
Expectations for profits from the sale of vessels are adjusted from USD 7 million to USD 3 million. CAPEX is expected to amount to USD 0-20 million.
Norden reported a USD 416 million loss in its annual results for 2014 amid severely worsened dry cargo market.
The results were also affected by value adjustments on hedging instruments winding down in USD 61 million loss, Norden said.