Norden upgrades its full-year guidance after a significant improvement in product tanker rates during recent weeks. Profit is now expected to reach up to USD 350m.
Norden, spearheaded by CEO Jan Rindbo, upgrades its full-year guidance. | Photo: Lars /ERH
Dry bulk and tanker carrier Norden raises expectations of 2022 due to a recently improved tanker market.
Previously, Norden expected a result in the range of USD 210-280m. But in recent weeks, ”significant increases in product tanker market rates” have occurred, meaning the carrier now dials up its guidance.
Norden now forecasts landing a profit of USD 270-350m in 2022.
”During the second half of 2021 and Q1 2022, Norden added additional tanker vessel capacity in anticipation of improved market rates in 2022. We are therefore well positioned to benefit from the tanker market improvements in recent weeks,” says CEO Jan Rindbo in the stock exchange announcement.
We are therefore well positioned to benefit from the tanker market improvements in recent weeks
JAN RINDBO, CEO, NORDEN
Furthermore, ”our Freight Services & Trading business has acted quickly to utilize regional rate spikes, which further benefits our earnings.”
The improved outlook for the tanker business comes after a long period in which Norden, like its competitors in product tanker, has operated under difficult market conditions.
In 2021, Norden’s tanker business presented red figures, more specifically a deficit of USD 30m in the Tanker Operator business.
Last year, Norden restructured its organization, meaning the carrier’s previous business units – Dry Operator, Tanker Operator and Asset Management – were remade into two units: Assets & Logistics and Freight Services and Trading.
According to Norden, business unit Assets & Logistics is developing ”in line with previously announced expectations in the annual report for 2021.”
On May 5, Norden will present its financial figures for the first quarter.
English edit: Kristoffer Grønbæk
