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NORDEN Financial Performance for FY 2024

NORDEN, the prominent shipping and logistics company, has disclosed its financial results for the year ending December 2024, showcasing robust performance despite ongoing geopolitical tensions and a challenging market environment. The company reported a net profit of USD 163 million (approximately DKK 1.2 billion), which translates to a return on invested capital of 14%.

Highlights of FY 2024 Results

The financial results reveal significant disparities within NORDEN’s business units. While the overall net profit was strong, the Freight Services Trading segment faced considerable challenges, culminating in a yearly net loss of USD 74 million. This prompted management to refocus their efforts on restoring profitability within the dry operator activities. Encouragingly, recent trends indicate a recovery in this area, with notable improvements being reported towards the end of the fiscal year.

Conversely, the Assets Logistics division performed admirably, generating a net profit of USD 236 million. This success can be attributed to effective management strategies that capitalized on high earnings coverage and realized strong market values through asset sales. The continued high asset prices also positively impacted NORDEN's fleet valuation, which led to an estimated Net Asset Value of DKK 425 per share at year-end 2024.

Shareholder Returns and Future Outlook

In a move to reward shareholders, NORDEN has proposed distributing USD 27 million for the last quarter through dividends and a new share buy-back program, bringing the total returns for the year to USD 100 million. NORDEN’s CEO, Jan Rindbo, remarked on the tumultuous operating conditions, characterized by fluctuating supply and demand forces, but emphasized the company's adaptability and resilience, which allowed for positive returns amidst volatility.

Looking ahead, NORDEN faces a cautious yet optimistic outlook. Based on current market conditions, the company anticipates a reduction in profitability for FY 2025, projecting net profits in the range of USD 20-100 million. This guidance integrates expected gains of USD 16 million from the sale of previously signed vessels.

Dividends and Trading Information

The dividend distribution will be processed through VP Securities based on registered shareholdings as of March 14, 2025, with trading cum interim dividend concluded by March 12, 2025. Shares purchased from March 13, 2025 onward will be traded ex-dividend. The dividend is expected to reach shareholders’ accounts by March 17, 2025.

Conclusion

As NORDEN navigates through a complex and evolving landscape marked by geopolitical issues, the company has showcased the ability to remain profitable while adapting to the prevailing conditions. Through robust asset management and strategic decision-making, NORDEN is well-positioned to face future challenges and deliver value to its shareholders as it continues to evolve.

For further inquiries, stakeholders may contact NORDEN’s Head of Investor Relations, Therese Möllevinge, or their Investor Relations Manager, Isabella Zaugg Hansen, for detailed information.