NORDEN - Virksomhedstråd

NORDEN publishes 2022 numbers ending with a full-year net profit of USD 744m, against the guidance of USD 730-780m. NORDEN’s Assets and Logistics division earned USD 193m, with its Freight Services and Trading earning USD 550m. The company also announced a further dividend of DKK 30 per share, taking its total dividends over 2022 to DKK 90 per share (equal to 57% of its annual result). Combined with share buybacks throughout the year, NORDEN returned USD 555m (74.6% of its net profit).

The company announced 2023 guidance for a profit of USD 330-430m. It expects slightly improved results in its Assets and Logistics division and significantly lower Freight Services and Trading earnings, with product tankers driving most of these results.

NORDEN’s positioning is now almost completely towards the product tanker segment as it expects a weaker 2023 in dry cargo against what was already a weak 2022. NORDEN remains short in the dry cargo segment in the short end, but it’s bullish at the longer end of the forward curve on expectations of China’s reopening driving demand in H2 2023.

In its product tanker segment, NORDEN has secured more coverage than was average in 2022, with roughly 70% coverage. This might reduce volatility in its product tanker segment relative to 2022 and result in fewer guidance revisions. CFO Martin Badsted said in the earnings call that product tanker markets are starting to react to the European sanctions on Russian petroleum products, and in the short term, that is having a positive effect on tonne miles. The overhanging risk in the product tanker market is how tightly the embargo will be enforced.

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