NORDEN Sells its Last Capesize Ship

Maritime Activity Reports, Inc.

January 18, 2016

Nord-Energy (Photo: NORDEN)

Nord-Energy (Photo: NORDEN)

In line with its dry cargo strategy to focus on Panamax and Supramax vessels, Danish ship owner NORDEN has entered into an agreement to sell its last remaining Capesize vessel Nord-Energy (180,310 dwt. built in 2004). At the same time, the company has agreed to buy a Supramax vessel (58,000 dwt. built in 2010). Both deliveries will take place in the course of the first quarter of 2016.

Following the sale, NORDEN no longer owns Capesize vessels and currently only operates one chartered vessel of this type.
The sale of Nord-Energy will entail an accounting loss of $14.8 million, which will be included in the annual results for 2015. The loss is especially driven by the development in fleet values seen in the fourth quarter of 2015.
The market values of vessels dropped significantly during the quarter, and the company has consequently started on a routine impairment test for the purpose of assessing the need for a write-down of the carrying amount of the fleet.
NORDEN’s expectations for the EBIT result before profits from vessel sales for 2015 are maintained. As a result of the sale of Nord-Energy, expectations to the 2015 EBIT results including profits from vessel sales are adjusted to $43-63 million compared to the previous $58-78 million.
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