Danish shipping company Dampskibsselskabet Norden A/S has delivered its best annual results in the past ten years having reported a $106 million profit for 2020.
The results are being announced on the back of a very challenging market plagued by volatility and uncertainty due to COVID-19.
In the tanker market, rates soared despite the biggest decline in oil demand for many years. Rate improvements were supported by increased demand for floating storage, which proved temporary, and rates fell to historically low levels at the end of the year.
Hence, the company’s tanker operator booked $ 18 million in profit.
On the other hand, the dry bulk market witnessed a rapid collapse in dry cargo rates, which was followed by a recovery later in the year as trade volumes began to grow again based on widespread global fiscal stimulus.
The company’s dry bulk operator ended the year with a profit of $59 million, much higher than the $8 million reported back in 2019.
The shipowner said that it managed its position through this turmoil by adding cheap dry cargo capacity through both timecharters and owned vessels, while reducing tanker exposure through coverage and vessel sales.
“Norden delivered an outstanding performance in challenging and volatile markets, achieving an Adjusted Result of $ 106 million in 2020 – the best group result in 10 years,” Jan Rindbo, Norden CEO, said.
“The result reflects the recent transformation of our business model and strategy to an asset-light platform based on trading opportunities, using data as an asset and strengthening our customer focus.”
Following a very strong performance in 2020, Norden expects a weak tanker market outlook to lead to lower earnings for 2021 and an expected annual Adjusted Result in the range of $20-60 million.
During 2020, Norden became a founding signatory of the Sea Cargo Charter, committing to transparent reporting of emissions.
“From 2021 onwards, we will therefore report on our energy efficiency relative to the Paris agreement trajectory as set forth by the Sea Cargo Charter, which aims to reduce yearly CO2 emissions per transport work. In Norden, we are aiming for 100% carbon neutrality in 2050,” Rindbo added.
Furthermore, during the first months of 2021, Norden became corporate partner of the Maersk Mc-Kinney Moller Center for Zero Carbon Shipping, which aims to decarbonise the maritime industry.
As a strategic partner, Norden plans to contribute directly to the work of the centre on projects related to the development and implementation of future fuels and zero-carbon technologies.