Over 700 Barges Stranded by Mississippi River Closure in Memphis Due to Bridge Crack
The U.S. Coast Guard said 44 vessels with a total of 709 barges are now in the queue as a 1-miles stretch of the Mississippi River remains closed after a...
COPENHAGEN, May 12 (Reuters) – Danish shipping company D/S Norden beat first-quarter operating profit forecasts on Tuesday, boosting its shares by as much as 9 percent.
One of the world’s largest dry bulk shipping company, D/S Norden has been hit like others in the industry by low freight rates due to overcapacity and a faltering global economy.
However, its quarterly results were lifted by its tanker vessels.
Earnings before interest and tax (EBIT) swung to $30 million in January-March from a loss of $22.6 million in the first quarter of last year, topping the average forecast for a loss of $1 million in a Reuters poll of analysts.
The Copenhagen-based still expects a full-year operating result between a loss of $40 million and a profit of $40 million.
“It is a conservative guidance for the year but is understandable since the dry bulk market is doing so poorly,” Sydbank analyst Jacob Pedersen said.
He has a “buy” recommendation on the shares and points to the fact D/S Norden only needs to make an additional operating profit of $10 million in the rest of the year to reach the high end of its guidance.
With 203 owned and chartered vessels carrying goods such as grain, iron ore and timber, D/S Norden competes with companies including China Cosco, operator of the country’s largest dry bulk fleet, and Hong Kong-based Pacific Basin.
The $30 million profit was driven by its 48 tanker vessels, carrying refined products, contributing $28 million.
The poor dry bulk market has encouraged shipping companies to scrap more of their vessels in the first four months of 2015 than in the same period last year in a bid to cut capacity.
By 0803 GMT shares in D/S Norden were up 7.44 percent while the Copenhagen main index were down 1.16 percent. (Editing by Mark Potter)
(c) 2015 Thomson Reuters, All Rights Reserved
Join the 68,537 members that receive our newsletter.
Have a news tip? Let us know.