Danish shipping company Norden has announced that its operating profit for the first half-year for 2010 was US$179 million against US$44 million in the first half-year of 2009.
In the second quarter of 2010, Norden's operating profit (EBITDA) increased by 246 percent to US$100 million. This includes compensation of US$41 million for cancellation of a charter party.
"The solid operating profit and the new upward adjustment confirm that we have put Norden back on the growth track after last year's adjustments of the business," said CEO Carsten Mortensen.
The company expanded its activities in dry cargo, and with high coverage at good rates, the dry cargo department increased earnings for the sixth consecutive quarter even though the market gradually weakened. In tankers, revenue from coverage contributed to a result close to zero in a continued weak market.
The primary operating profit (EBIT) increased 91 percent to US$86 million. The net profit was US$83 million after fair value adjustments of certain hedging instruments of US$2 million.
Based on the good results in the first half-year and high coverage, Norden has raised its expectations for an EBITDA of US$240-270 million (previously US$200-250 million) and an EBIT of US$225-255 million (previously US$185-235 million).
{WISroYQ symbol='DNORD'}
