NORDEN Achieves $33 Million Net Profit Amid Market Challenges
NORDEN's Strong Performance in Challenging Times
During the first quarter of this fiscal year, NORDEN demonstrated resilience and strategic foresight, achieving a net profit of USD 33 million, equivalent to DKK 234 million. Despite navigating through geopolitical uncertainties and fluctuating market conditions, the company reported a noteworthy return on invested capital of 11% over the last twelve months, indicating strong operational effectiveness.
Asset Strategy and Value Realization
In alignment with its strategy to maximize asset value, NORDEN finalized the sale of nine vessels within the quarter. This maneuver included three vessels sold from previously declared purchase options, underscoring NORDEN's proactive approach to leveraging its resources efficiently. By realizing part of their NAV through these sales, the company is positioning itself to sustain growth and profitability.
Upgraded Full-Year Guidance
NORDEN has maintained its upgraded guidance for the full year, expecting a net profit ranging between USD 50 million and USD 130 million. This projection reflects enhanced expectations due to successful vessel sales yielding gains of USD 45 million, a significant increase from prior estimates of USD 16 million. The adjustments in projection demonstrate the company's ability to adapt to market dynamics while optimizing operational performance.
Comments from Leadership
Jan Rindbo, the CEO of NORDEN, expressed confidence in the company’s strategies and results. He stated, "NORDEN generated a profit of USD 33 million in the first quarter of 2025 due to good coverage in significantly weaker markets. To capitalize on the continued high asset values, we have sold nine vessels during the quarter, which significantly contributed to our upgrade in full-year net profit guidance. Our commitment to shareholder value persists, evident through our declared dividend and share buy-back program.”
Dividend Distribution to Shareholders
The company proposes to distribute USD 17 million to its shareholders, showcasing its commitment to returning value. As part of this distribution, a dividend of DKK 2 per share is planned alongside a new share buy-back program amounting to USD 7 million. This move represents 52% of the profit generated during the first quarter, further reinforcing shareholder confidence.
Future Insights and Trading Information
For shareholders, important dates include the dividend payment date based on shareholdings registered before the market closure. NORDEN's shares will trade cum interim dividend until the end of the trading day and will transition to ex interim dividend thereafter. This process ensures clear communication and expectation management for all investors involved.
Contact and Additional Information
For those seeking more insights into the company’s performance, Therese Möllevinge, Head of Investor Relations, is available for inquiries. Alongside, Isabella Zaugg Hansen, Investor Relations Manager, is also equipped to address any specific concerns from investors. Both leaders emphasize NORDEN's commitment to transparency and investor engagement.
Frequently Asked Questions
What was NORDEN's net profit for the first quarter of 2025?
NORDEN reported a net profit of USD 33 million in Q1 2025.
How has NORDEN's strategy contributed to its profitability?
NORDEN's strategy of realizing asset value by selling nine vessels contributed significantly to its profitability in the first quarter.
What is the expected net profit range for NORDEN for the entire year?
The expected net profit range for NORDEN for 2025 is between USD 50 million and USD 130 million.
How much will NORDEN distribute to its shareholders?
NORDEN proposes to distribute USD 17 million to its shareholders through dividends and a share buy-back program.
Who can shareholders contact for more information?
Shareholders can contact Therese Möllevinge or Isabella Zaugg Hansen in the Investor Relations department for more information.
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