NORDEN (One-pager): Assets & Logistics profits overcome trading weakness in Q2 2024
Read the latest NORDEN One-pager, which includes a brief company description, the key investment case, valuation perspectives relative to a peer group, and several key investment risks and key investment reasons.
NORDEN reported its Q2 2024 earnings last week, narrowing its guidance for FY2024 net income of USD 160-240m, from USD 150-250m previously. The results came in slightly above consensus analyst estimates. NORDEN announced an extraordinary quarterly dividend of DKK 2 per share, the same as in Q1 2024, while also initiating a new share buyback program of USD 14m.
The bottom line result was divided a profit in Assets & Logistics of USD 64.1m. (USD 74.5 Q2 2023), driven by high coverage at profitable rates, and a sublease gain. Freight Services & Trading (FS&T) realised a deficit of USD 18.1m. (profit of USD 33.7m Q2 2023), as NORDEN unwinds its short position in dry cargo and faces challenges in an owners market. Management expects continued profitability in Assets & Logistics against a backdrop of high coverage at profitable rates and high asset values while improving conditions towards breakeven in FS&T are expected towards year-end.
Learn more about NORDEN and its outlook for 2024 and beyond from the One-pager or catch up on the Q2 2024 earnings presentation hosted with Martin Badsted, NORDEN CFO at Inderes.dk.
Link: https://www.inderes.dk/videos/norden-praesentation-af-q2-2024
Disclaimer: HC Andersen Capital receives payment from NORDEN for a DigitalIR/corporate visibility subscription agreement./ Philip Coombes 13:10 13.08.2024.
D/S Norden
NORDEN er et internationalt tørlast- og tankrederi med 12 kontorer globalt, og hovedkontor i København. Selskabet er noteret på NASDAQ OMX Copenhagen. NORDENs handelsorienterede forretningsmodel er baseret på de to forretningsenheder - Assets & Logistics og Freight Services & Trading – hvor førstnævnte varetager ejerskab, leasing og handel med skibe samt logistikløsninger, imens sidstnævnte er operatør af skibene, men også kan tage markedseksponering. Assets & Logistics tager sig populært sagt at den langsigtede markedseksponering, dvs. mere end 2 år imens Freight Services & Trading tager sig af den kortsigtede markedseksponering, dvs. mindre end 2 år. Selskabets forretningsaktiviteter er baseret på en asset-light handelsstrategi, der kun ejer en lille procentdel (~5%) af dens samlede opererede skibsflåde bestående af tæt på 500 skibe. Forretningsmodellen gør det muligt for NORDEN løbende, at justere kortsigtet markedseksponering i forhold til udviklingen på tørlast- og produkttankmarkedet, samtidig med at man udnytter mulighederne for handel med aktiver. Interne data og avancerede analyser, risikostyringssystemer og markedsundersøgelser giver en datadrevet tilgang til eksponeringen.
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