The shipping line Norden expects a considerably higher operating profit for 2007 after an expected result in the range of USD 170-190 million (about DKK 960-1080 million) this year.
The expected improvement is based on favourable conditions for the dry cargo vessels where the shipping line has managed to get good prices for next year.
»Based on the high forward rates for 2007 and the company’s positioning, the operating profit for 2007 is expected to be considerably above the level for 2006,« the Norden management wrote in the interim report for 3rd quarter.
The expectations for 2006 remain unchanged.
But behind this there is an upgrade of the earnings from the core business dry cargo vessels which transport iron, cereal grains, cement and other commodities by USD 10 million corresponding to about DKK 570 million, among other things due to profits from the sale of vessels.
The operating profit (EBIT) for the first nine months of the year was USD 140 million, 39 per cent below the record year 2005. But the 3rd quarter alone resulted in a operating profit which was 18 per cent better than the same period last year, not counting the profit from sales of ships. The reason is a stronger market for both the tanker department and the dry cargo department.
The freight income (revenues) for the nine months was USD 840 million (about DKK 4.8 billion), 15 per cent below the same periode 2005.
While the forecast for the dry cargo vessels for 2007 is optimistic the forecast for the tankers is more modest, as the agreed freight rates are more than 10 per cent under this year’s average.
The expected improvement is based on favourable conditions for the dry cargo vessels where the shipping line has managed to get good prices for next year.
»Based on the high forward rates for 2007 and the company’s positioning, the operating profit for 2007 is expected to be considerably above the level for 2006,« the Norden management wrote in the interim report for 3rd quarter.
The expectations for 2006 remain unchanged.
But behind this there is an upgrade of the earnings from the core business dry cargo vessels which transport iron, cereal grains, cement and other commodities by USD 10 million corresponding to about DKK 570 million, among other things due to profits from the sale of vessels.
The operating profit (EBIT) for the first nine months of the year was USD 140 million, 39 per cent below the record year 2005. But the 3rd quarter alone resulted in a operating profit which was 18 per cent better than the same period last year, not counting the profit from sales of ships. The reason is a stronger market for both the tanker department and the dry cargo department.
The freight income (revenues) for the nine months was USD 840 million (about DKK 4.8 billion), 15 per cent below the same periode 2005.
While the forecast for the dry cargo vessels for 2007 is optimistic the forecast for the tankers is more modest, as the agreed freight rates are more than 10 per cent under this year’s average.