Strong product tanker markets and vessel sales helped Norden book a solid first-quarter result.
The Danish bulker and product tanker owner-operator recorded net profit of $150.2m, or DKK 31 ($4.60) in earnings per share.
This is up from $117.1m in the first three months of 2022, when earnings per share were DKK 21.
The increase was driven by strong tanker freight earnings, gains made from vessel sales and lower net financial expenses.
“Our asset-light freight service and high contract cover adds stability in earnings in volatile spot markets,” chief executive Jan Rindbo commented.
“During the quarter, we also captured significant profits from vessel sales, while widening our portfolio to cover all dry cargo segments with the purchase of capesize vessels.”
Norden raised $42m by selling four bulkers and two tankers during the first three months of the year, cashing in on “elevated” tanker values.
Revenue dipped 8% year on year to $999.2m.
Norden will pay an interim dividend of DKK 15 per share for the quarter.
Rindbo said the company generated a 40% return on equity during the three months.
While its asset-light Freight Services & Trading division has led the way in generating profit in previous quarters, this time its shipowning unit made more cash.
The Assets & Logistics division, which oversees its owned fleet and leased vessels, contributed $83m to the bottom line. Freight Services & Trading contributed $67m.
The trading arm generated a margin of $1,672 per vessel day during the quarter, which Norden said was “driven by strong tanker earnings and a short position, meaning more cargo than tonnage, in a weak dry cargo market”.
Norden operated 315 bulkers and 130 product tankers on average during the first quarter.
Its fleet of owned and leased vessels comprises 53 bulkers and 36 product tankers.
Norden said it has been building long exposure to dry cargo markets by buying bulkers, especially capesizes. It has bought four so far this year.
There were no updates to profit guidance for 2023 since its last advice in February. Norden reiterated that it expects to make between $330m and $430m this year overall.
Last year, it booked an annual result of $743.5m, the best in its 151-year history.
