Norden has released its 2014 financial report, announcing a bottom line of negative $416 million including impairments.
Despite what the company called a 'strong performance' from its tankers, the dry cargo market, which has been badly hit by the Chinese slowdown, was said to be the cause of the dissatisfactory performance.
Explaining the result, interim CEO Klaus Nyborg said: ”Contrary to expectations, the dry cargo market in 2014 went from bad to worse. Norden launched a number of initiatives and cleared up in old contracts, which affected results for the year significantly. The tanker department generated the best operating profit in six years."
Norden says it has adjusted its strategy to better reflect the more challenging market by taking such measures as reducing its dry cargo fleet by 21 percent, suspending its investment programme, and launching a new savings programme with a target of $20 million per annum. The company has also sold five of its vessels for a total of $112 million and secured $221 million in new credit facilities.
"In spite of a continued very difficult dry cargo market, the initiatives, along with a good start in tankers, will ensure a significant improvement in Norden’s results for 2015,” Nyborg added.
For more information on the dry bulk market situation, read Intermodal's latest report on how the shipping industry needs to keep calm and carry on...