Interim report – First quarter 2019

ANNOUNCEMENT NO. 13 - 7 MAY 2019

Attached please find the full interim report as PDF file

Today, the Board of Directors approved the interim report for the first quarter 2019. The report contains the following highlights:

Results

Adjusted Result* for Q1 2019: USD 7 million (Q1 2018: USD 9 million)

• Dry Operator: USD -3 million (USD 3 million)
• Dry Owner: USD 0 million (USD 5 million)
• Tankers: USD 10 million (USD 0 million)

Loss from sale of vessels: USD 12 million

Adjusted Result excluding effect of IFRS 16: USD 10 million

*”Profit/loss for the period” adjusted for “Profit from sale of vessels etc.”

Markets

• Dry Cargo: Steep decline in rates due to dam disaster and other disruptive incidents in iron ore market, continued trade tensions and weaker Chinese imports.
• Tankers: Strong winter market.

Performance

• Dry Operator: Loss in the first quarter of 2019 bringing the Adjusted Result to USD 24 million over last 4 quarters.
• Dry Owner: High coverage enabling break-even result in very weak market.
• Tankers: Performance 6% above 1-year T/C benchmark. Extra average daily earnings of USD 715.

Vessel Values

• Dry Cargo: -7%
• Tankers: +1%

Guidance

Expectations for the Adjusted Result for the year are maintained at USD 25 to 60 million.

STRONG WINTER MARKET IN TANKERS – COLLAPSING DRY CARGO MARKET

“NORDEN generated a positive result in a quarter characterised by a strong winter market in tankers and a dry cargo market on the brink of collapse. NORDEN had anticipated a weak dry cargo market, but not even swift and agile response in Dry Operator could offset rates being halved within a three-week period. Dry Owner, however, was well protected against the weak market due to high coverage and generated a break-even result, while the Tanker business was well positioned towards a very strong winter market and delivered a good result.”

CEO Jan Rindbo

A telephone conference will be held today at 3:30 p.m. (CET), where CEO Jan Rindbo and CFO Martin Badsted will comment on the interim report. It is requested that all participants have joined the meeting by latest 3:25 p.m. (CET) – international participants please dial in on +44 (0) 207 192 8000 or +1 631 510 7495, Danish participants please dial in on +45 3272 8042. The telephone conference will be shown live at www.ds-norden.com, where the accompanying presentation wil also be available.

For further information:
Jan Rindbo, CEO, tel.: +45 3315 0451

Attachments