Norden posted a loss of USD 12 million against last year’s Q3 profit of USD 4 million.
In the third quarter of 2018, Norden’s dry operator generated a contribution margin of USD 11.5 million and an adjusted result of USD 2.3 million. The result is an improvement year-on-year compared to last year’s loss of USD 2.1 million.
The dry owner recorded an adjusted result of USD 4 million for the quarter and USD 13 million for the first three quarters of 2018.
During the third quarter, Norden entered into agreements with Japanese tonnage providers to charter in two 82,000 tdw Panamaxes over a 5-year duration with delivery in 2020 and purchase options.
Norden’s tanker business posted a loss of USD 18 million, much wider than last year’s equivalent of USD 1 million. Handysize tankers generated daily earnings of an average of USD 9,062, while daily earnings in the MR fleet amounted to USD 10,347.
“At the beginning of the fourth quarter rates for crude vessels have improved and there have also been positive signs for product tanker rates in the Atlantic. In 2019, additions to refinery capacity, low fleet growth and a better crude tanker market are expected to lead to improving product tanker rates. In addition, the introduction of the IMO sulphur cap on emissions from bunker fuel is expected to further support the market balance starting in the second half of 2019,” the company said.