Danish owner-operator Norden battled negative margins at its asset-light business as it saw its second-quarter profit cut in half.
Copenhagen-listed Norden has also shaved its full-year profit guidance.
Net profit for the second quarter was $46m, down from $108m in the same period last year.
Revenue grew year on year by 8% to $1.03bn for the quarter.
Norden’s Assets & Logistics division contributed $64m to the bottom line on the back of tanker earnings and high earnings coverage from its owned bulk carriers.
But its asset-light Freight Services & Trading division suffered an $18m loss during the quarter due to “temporarily negative” margins on its operated vessels.
It suffered its second consecutive quarter of negative margins on its operated ships, losing $420 per vessel day on its 474-ship operated fleet during the period.
This is about $200 per day better than last quarter, when Norden had a slightly smaller operated fleet.
The company said the negative margins came on the back of higher charter costs from covering its short position from the first quarter, combined with higher voyage costs related to weather and ballast legs.
“Margins were further impacted by costs related to new vessel charters and repositioning of tonnage on lower-paying back-haul voyages with expected future benefits,” it added.
Norden’s long-term average margin has been $1,181 per vessel per day since the third quarter of 2019.
Chief executive Jan Rindbo said: “We have executed on our growth strategy by investing in modern capesize vessels and in Projects & Parcelling by acquiring Norlat Shipping, while at the same time returning $23m to shareholders for the second quarter.”
“We narrow the full-year guidance range to $160m to $240m expecting further gradual improvements in margins in our Freight Services & Trading business,” he added.
The guidance includes $61m in gains from vessel sales and other agreed transactions.
Previously, Norden has guided for a net profit of between $150m and $250m this year.
Its net income for the first six months of 2024 stands at $108m, down from $258m during the first half of last year.
An interim dividend of DKK 2 ($0.29) per share will be paid for the second quarter.
Norden has introduced a new $14m share buyback programme that will run until the end of October. This follows on from the $21m buyback plan that expired at the end of July.
Norden acquired Norwegian dry cargo operator NorLat Shipping in July to expand its projects and parcelling business.
The firm, which has two offices in Norway and another in Sweden, will be merged into the projects and parcelling activities of Norden’s Freight Services & Trading business unit.
Norden had a fleet of 82 owned and leased bulkers and tankers at the end of the second quarter.
Its operated fleet averaged 474 vessels during the period, comprising 383 bulkers and 91 product tankers.
Norden has been active in parcelling for some time and has been growing. It bought Thorco Projects in mid-2023, which was its first acquisition of another business in the company’s 150-year history.
The Projects & Parcelling division contributed $9m in Ebitda to Norden’s second-quarter result.
Norden flipped a capesize bulker for about $1.5m in gross profit when it sold the 179,678-dwt Nord Ferrum (built 2011) in May, after owning it for just over a year.
It also bought two modern capesizes during the second quarter, bringing its capesize fleet to 12 vessels including newbuildings.
