D/S Norden’s Shares Jump 9 Percent as Profits Top Forecasts

By Ole Mikkelsen

COPENHAGEN, May 12 (Reuters) – Danish transport firm D/S Norden beat first-quarter working revenue forecasts on Tuesday, boosting its shares by as a lot as 9 p.c.

One of the world’s largest dry bulk transport firm, D/S Norden has been hit like others within the trade by low freight charges as a result of overcapacity and a faltering world financial system.

However, its quarterly outcomes have been lifted by its tanker vessels.

Earnings earlier than curiosity and tax (EBIT) swung to $30 million in January-March from a lack of $22.6 million within the first quarter of final 12 months, topping the typical forecast for a lack of $1 million in a Reuters ballot of analysts.

The Copenhagen-based nonetheless expects a full-year working consequence between a lack of $40 million and a revenue 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 mentioned.

He has a “buy” advice on the shares and factors to the very fact D/S Norden solely must make an extra working revenue of $10 million in the remainder of the 12 months to achieve the excessive finish of its steerage.

With 203 owned and chartered vessels carrying items similar to grain, iron ore and timber, D/S Norden competes with firms together with China Cosco, operator of the nation’s largest dry bulk fleet, and Hong Kong-based Pacific Basin.

The $30 million revenue was pushed by its 48 tanker vessels, carrying refined merchandise, contributing $28 million.

The poor dry bulk market has inspired transport firms to scrap extra of their vessels within the first 4 months of 2015 than in the identical interval final 12 months in a bid to chop capability.

By 0803 GMT shares in D/S Norden have been up 7.44 p.c whereas the Copenhagen major index have been down 1.16 p.c. (Editing by Mark Potter)