DNB Markets has lowered its forecasts for Danish shipowner Norden ahead of its first quarter report tomorrow.
Analysts at the Norwegian finance house believe the Copenhagen-listed company will record a modest loss for the opening three months of 2017 and remain in the red for the next two years.
Nicolay Dyvik and colleagues Petter Haugen and Jorgen Lian project Norden will book a loss of $400,000 when it reports its first quarter accounts tomorrow, compared with consensus for a $2.3m profit.
For 2017 as a whole, DNB believes Norden will book a loss of $8m, compared with the $14m profit previously charted.
Norden’s own forecast is for an underlying result for the year between a $20m loss and a $40m profit.
The analysts expect loss of $4m loss for the owner in 2018, down from the $43m profit they had previously suggested.
Norden has been streamlining its fleet to focus on core areas.
Dyvik, Haugen and Lian note that the strategy has seen the company sell 33% of its owned bulkers, meaning it has benefited less than its peers from the recent increase in values.
“It said the proceeds would be reinvested in supramax and panamax vessels, but has yet to do so, capping any benefit from the asset appreciation cycle, having increased its focus on operator activities,” the analysts wrote.
