Nordic Back to Black

Danish product tanker owner Nordic Shipholding A/S made a profit of USD 2.3 million in 2014 due to improved earnings and a one-off gain of USD 5.2 million arising from the reversal of impairment loss on Nordic Anne previously recognised, which was slightly above expectations, the company said. 

Excluding this gain, the group incurred a net loss of USD 2.8 million for 2014.

Within its restructuring process completed on 19 December 2013, all the the company’s 6 vessels were transferred to separate wholly-owned legal entities in Singapore. At the same time, the change of technical managers for all the vessels was also completed with two new technical managers, each managing 3 vessels.

Gross revenue earned by the 6 vessels in 2014 reached USD 50.1 million, which resulted in a TCE revenue of USD 27.1 million and an EBITDA of USD 6.8 million.

For 2015, the group said it expected to post a modest profit arising mainly from the operations of the 6 vessels.

In addition, Nordic plans to keep 5 of its 6 vessels commercially deployed on a pool basis.  One vessel is time-chartered under a minimum 3-year time-charter arrangement.

As rates in 2015 are forecasted to improve compared to 2014, the TCE revenue from the 5 product tankers in the pool and the time charter income from Nordic Anne are expected to be in the region of USD 29.0 — USD 32.0 million, Nordic said.

Nordic expects EBITDA (earnings before interest, tax, depreciation and amortisation) to be in the range of USD 13.0 — USD 16.0 million.