The Danish-based Norden books a strong financial year with net profits of USD 744 million, the best results in company´s history, as Norden claims.
The company reveals in its financial report for the year 2022 that achieved its best financial performance ever with a net profit of USD 744 million. The results, as the company informs, are in line with the updated expectations announced on 23rd of December 2022 of profit for the year between USD 730-780 million.
The top management of the company explains that Norden´s strong earnings and the modest working capital built up, resulted in an exceptional cash flow, from operating activities of USD 1,343 million in 2022, compared to USD 434 million in 2021.
The company generated very strong earnings both in dry cargo, where the market declined, and in product tankers, where rates surged. This was made possible by a decision early in the year, to change the entire group exposure across almost 500 operated vessels, from mostly dry cargo at the beginning of the year, to mostly product tankers in the second half of the year.
For this year the company expect´s another strong result in the range of USD 330-430 million.
As the top management highlights for this year “Looking into 2023, we expect once again to deliver good returns based on active management of the volatility, and opportunities expected in the dry cargo and product tanker markets. We expect a profit for the year in the range of USD 330 to 430 million, and will continue to deliver value to customers, employees and shareholders.”
As the company says the war in Ukraine had a limited overall impact on the dry cargo market. Coal, grain and fertiliser volumes were lost due to closed ports in Ukraine and sanctions against Russia. This was offset, however, by longer distances as new trade routes emerged to make up for lost volumes. In total, volumes transported slightly decreased by 0.4%, while longer distances added 1%.
Norden expects the dry cargo market to face further headwinds in the first half of 2023, in line with a slowdown in the world economy, and corresponding low growth in global commodity volumes.
“Market improvements may start in the second half of 2023. This would depend on the global economy bottoming out, and Chinese imports rebounding, if the economy recovers from the current wave of COVID-19 infections. However, Chinese imports will most likely still be subdued, as the Chinese building sector is facing the lowest level of activity in over a decade,” as it is furthermore mentioned by the company.
