Denmark’s shipping company Norden has confirmed the sale of two capesize vessels, signed leases with purchase options for two newbuildings, and exercised five purchase options.
The company Norden has agreed to sell two capesize vessels, Nord Power and Nord Energy, with delivery scheduled for the first quarter of 2025.
This decision to sell older dry cargo vessels is believed to be a strategic move to maximise returns at a time when second-hand capesize asset prices are at elevated levels.
The expected sales profit will be realised in the company’s first quarter 2025 financial results.
Nasdaq Copenhagen-listed Norden has also entered into two new dry cargo leases with purchase options for one capesize and one handysize newbuilding. The company said the bulkers would be built in Japan with expected deliveries in 2028, without disclosing further transaction details.
“We are committed to replace older vessels with high-quality newbuildings featuring state-of-the-art designs and the best available fuel performance, which will further enhance our freight service to customers,” the statement reads.
Furthermore, Norden has exercised five purchase options below current market asset prices. The five purchase options are related to one handysize dry cargo vessel and four MR tankers, and they will be added to its portfolio of owned vessels during the first half of 2025.
After these transactions, Norden’s asset portfolio will consist of 17 owned vessels and 79 long-term leases with purchase options-of which 43 can be declared before the end of 2025.
Henrik Lykkegaard Madsen, head of asset management, said: “By leasing newbuildings, we position ourselves advantageously against the backdrop of an ageing global fleet and the lowest orderbook in decades.
“With tight shipyard availability anticipated in the coming years, newbuilding prices and forward charter rates in the dry cargo sector are expected to remain robust.”
