Copenhagen-based shipowner DS Norden has reported a sharp drop in first quarter profits to $73m, a fall of 64% year on year.
The company, which runs a dry cargo and tanker division, said earnings before interest, taxes, and amortisation was $15m, spread equally between the two units.
Norden adapted its capacity to meet the challenges it has faced during the economic crisis, the company said. As well as returning chartered tonnage when appropriate, it had also confirmed the sale of a number of vessels over the year.
In January it agreed to sell two panamax and four handymax bulk carrier newbuildings for a total of $175m. The sales generated a total profit of $13m. In April it sold two handymax vessels with a total profit of $13m and then earlier this month confirmed the sale of a further two vessels, estimating a profit if $15m.
At the same time the company narrowed down its expectations for operating profit for 2009 to between $110m and $160m.
The company has a fleet of 242 vessels, including vessels on charters over three years and newbuilding orders.
In its first quarter statement, Norden said that it had reorganised its counterparty portfolio in the dry cargo department and tightened its criteria for credit rating.
This has led to settlements with a number of counterparties, which although made after the end of the quarter have been included in the company’s expectations for the year.
The result was increased certainty about future income and since the end of the quarter no new disputes have arisen, Norden said.
Norden is still in dispute with debt-laden Russian aluminium giant United Co Rusal, which is being sued for more than $120m over alleged breaches of contracts of affreightment with shipowners and operators.
Norden’s five largest counterparties constitute approximately 30% of the company’s revenue.
The company, which runs a dry cargo and tanker division, said earnings before interest, taxes, and amortisation was $15m, spread equally between the two units.
Norden adapted its capacity to meet the challenges it has faced during the economic crisis, the company said. As well as returning chartered tonnage when appropriate, it had also confirmed the sale of a number of vessels over the year.
In January it agreed to sell two panamax and four handymax bulk carrier newbuildings for a total of $175m. The sales generated a total profit of $13m. In April it sold two handymax vessels with a total profit of $13m and then earlier this month confirmed the sale of a further two vessels, estimating a profit if $15m.
At the same time the company narrowed down its expectations for operating profit for 2009 to between $110m and $160m.
The company has a fleet of 242 vessels, including vessels on charters over three years and newbuilding orders.
In its first quarter statement, Norden said that it had reorganised its counterparty portfolio in the dry cargo department and tightened its criteria for credit rating.
This has led to settlements with a number of counterparties, which although made after the end of the quarter have been included in the company’s expectations for the year.
The result was increased certainty about future income and since the end of the quarter no new disputes have arisen, Norden said.
Norden is still in dispute with debt-laden Russian aluminium giant United Co Rusal, which is being sued for more than $120m over alleged breaches of contracts of affreightment with shipowners and operators.
Norden’s five largest counterparties constitute approximately 30% of the company’s revenue.