Danish tanker owner Nordic Shipbuilding is continuing to rack up bigger losses as it looks to sell its fleet and wind down operations.
The OMX Baltic-listed product carrier company said rates so far this year have continued to be depressed due to reduced demand caused partially by the Covid-19 pandemic, "coupled with an excessive tonnage availability in the market".
The average daily time charter equivalent (TCE) rate for the third quarter was 65% lower than that achieved a year ago.
The net loss came in at $8.1m, including a one-off impairment on its tankers of $4.9m. The deficit in the same period of 2020 was $3.9m.
Nordic's three remaining ships were put up for sale in August after the search for a merger partner failed.
Revenue was down at $7.5m from $24m the year before.
Buyers still being sought
"The board is currently in discussions with the group's various stakeholders to ensure the proper winding down...in a responsible manner," Nordic said.
"Due to the volatile market, it is noted that the estimation of the remaining vessels' expected sale value is highly uncertain," the company added.
VesselsValue estimates that Nordic's remaining pair of handysizes and an LR1 tanker are worth a combined $39.4m.
The ships are the 37,800-dwt Nordic Agnetha and Nordic Amy and the 73,800-dwt Nordic Anne (all built 2009).
Assuming the tankers remain in their Hafnia-managed pools, Ebitda for 2021 is expected to be between a loss of $1m and a profit of the same amount.
Board changes
Between the end of 2020 and 30 September this year, the company's negative equity has grown to $16.7m.
In October, chairman Knud Pontopiddan and independent director Jens Mathiasen quit.
Pontoppidan, a former TT Club chairman and AP Moller-Maersk executive vice-president, joined the board in 2010.
International Chamber of Shipping chairman Esben Poulsson, an independent director, is the new chairman and Jon Lewis will continue as deputy.
The other board members are Kanak Kapur and the company's chief executive Philip Clausius.
