Nordic Shipholding Rebounded in 2014
Danish ship owner Nordic Shipholding turned a profit in 2014 following its 2013 restructuring, the company announced today.
The company earned a profit of $2.3 million in 2014 due to improved earnings and a one-off gain of $5.2 million arising from the reversal of impairment loss on the Nordic Anne, a 73,750-dwt tanker. Excluding this gain, the Group incurred a net loss of USD 2.8 million for 2014.
The company was $58 million dollars in debt when it entered a conditional restructuring agreement with Nordic Maritime, which was completed in December 2013. Since then, all six vessels were transferred to separate wholly-owned legal entities in Singapore. Gross revenue earned by the six vessels reached $50.1 million, which resulted in a TCE revenue of USD 27.1 million and an EBITDA of USD 6.8 million. Equity totaled USD 30.6 million.
In December 2014, the group repaid the short-term working capital facility of $4 million extended by the lending banks as part of the restructuring.
In 2015, five of the group's six vessels will remain commercially deployed on a pool basis. One vessel is time-chartered under a minimum 3-year time-charter arrangement. As rates in 2015 are forecasted to improve compared to 2014, the TCE revenue from the five product tankers in the pool and the time charter income from Nordic Anne are expected to be in the region of $29.0 to $32.0 million. The group expects EBITDA (earnings before interest, tax, depreciation and amortization) to be in the range of $13 to $16.0 million.
In other company news, the Board of Directors proposes to elect Kanak Kapur as a new member to the Board of Directors at the coming Annual General Meeting. Kapur is nominated by the company’s main shareholder, Nordic Maritime S.à.r.l.