ANNUAL REPORT 2021  
CVR NUMBER 67758919  
 
CONTENTS  
MANAGEMENT’S REVIEW  
FINANCIAL STATEMENTS  
In Brief  
Governance  
Consolidated Financial Statements  
72 Income Statement  
72 Statement of Comprehensive Income  
73 Balance Sheet  
74 Statement of Cash Flows  
75 Statement of Changes in Equity  
76 Notes to the Financial Statements  
2021 in five minutes  
4
5
6
8
NORDEN introduction  
Business units  
Financial highlights  
Letter from the Chairman  
and the CEO  
37 Corporate governance  
40 Board of Directors  
42 Senior Management  
43 Board Committees  
CEO Jan Rindbo presents NORDEN’s  
annual report 2021 in a short film at  
norden.com/investor  
10 Key figures and financial ratios  
11 Outlook for 2022  
Sustainability  
45 Sustainability in NORDEN  
47 Climate & Environment  
51 People  
Parent Company Financial Statements  
116 Income Statement  
Strategy  
13 NORDEN strategy  
14 Strategic focus areas  
15 Investor information  
19 Risk management  
56 Anti-corruption  
59 ESG performance  
60 ESG accounting policies  
117 Balance Sheet  
118 Statement of Changes in Equity  
119 Notes to the Financial Statements  
Signatures  
Other  
Business Performance  
23 Group financial review  
24 Asset Management  
29 Dry Operator  
63 Statement by the Board of Directors  
and Executive Management  
64 Independent Auditor’s Report  
68 Independent Limited Assurance  
Report  
133 Definitions of key figures and  
financial ratios  
134 Shipping terms and abbreviations  
135 Company information  
Follow us here  
www  
norden.com  
facebook.com/dampskibsselskabetnorden  
32 Tanker Operator  
linkedin.com/company/ds-norden  
instagram.com/ds_norden/  
See our other reports on our website  
Strategy  
page 12  
Business Performance  
page 22  
Sustainability  
page 44  
Remuneration Report 2021  
Corporate Governance  
Statutory Statement 2021  
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NORDEN  
2
CONTENTS  
ANNUAL REPORT 2021  
 
IN BRIEF  
4
5
6
8
NORDEN introduction  
Business units  
Financial highlights  
Letter from the Chairman and the CEO  
10 Key figures and financial ratios  
11 Outlook for 2022  
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—
3
NORDEN  
ANNUAL REPORT 2021  
IN BRIEF  
 
ENABLING SMARTER GLOBAL TRADE  
COPENHAGEN,  
DENMARK  
VANCOUVER,  
CANADA  
ANNAPOLIS,  
LIMASSOL,  
CYPRUS  
USA  
SHANGHAI,  
CHINA  
DUBAI,  
UNITED ARAB EMIRATES  
ABIDJAN,  
IVORY COAST  
SINGAPORE  
OWENDO,  
GABON  
RIO DE JANEIRO,  
BRAZIL  
SANTIAGO,  
CHILE  
MELBOURNE,  
AUSTRALIA  
150 YEARS OF HONOURING OUR COMMITMENTS  
People & Data  
Our values  
Industry leader  
~450  
0
376  
6.4  
Operated vessels  
Net zero  
carbon emissions  
by 2050  
Employees  
Billion datapoints  
daily  
92% chartered / 8% owned  
Reliability  
Flexibility  
Empathy  
Ambition  
—
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ANNUAL REPORT 2021 NORDEN  
4
IN BRIEF  
NORDEN INTRODUCTION  
 
BUSINESS UNITS  
(AS OF JANUARY 2022)  
ASSETS & LOGISTICS  
FREIGHT SERVICES & TRADING  
Asset trading and active portfolio management of owned  
and leased vessels. Investments in port logistics aimed at optimising  
supply chains  
Global freight services and trading in the dry cargo  
and product tanker markets  
Asset Management  
Logistics & Climate solutions  
Asset-Light Freight Services  
Dry cargo  
vessels  
Product tanker  
vessels  
Port logistics  
Decarbonisation  
Construction  
Foods & oils  
Energy  
Industrial  
•
•
Asset trading of owned vessels  
•
•
•
Developing projects with selected  
customers  
•
•
Scalable platform highly responsive to customer needs and market changes  
Leased vessels with significant  
optionality upside  
Recurring earnings with protection against market downside and exceptional upside  
potential in strong markets  
Integrated port logistics and freight  
services  
•
High contract cover with visible  
and recurring earnings  
•
Multiple trading and arbitrage strategies based on timing, geographies  
and vessel types  
Optimising customer supply chains  
Foundation  
People &  
Culture  
Data & Advanced  
analytics  
NORDEN  
Brand  
Customer relationships  
& Global presence  
Governance & Risk  
management  
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—
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BUSINESS UNITS 5  
NORDEN  
ANNUAL REPORT 2021  
IN BRIEF  
 
FINANCIAL HIGHLIGHTS  
Profit/loss  
Adjusted Result  
BUSINESS UNITS  
Profit/loss  
USD 205 million  
USD 198 million  
USD million  
200  
USD million  
200  
160  
120  
80  
160  
120  
80  
Asset Management  
USD 5 million  
40  
40  
(2020: USD 9 million)  
0
0
2019  
2020  
2021  
2019  
2020  
2021  
Dry Operator  
Cash flow from operations  
Return on Equity  
USD 230 million  
USD 434 million  
21.6%  
(2020: USD 59 million)  
%
USD million  
25  
500  
20  
15  
10  
5
400  
300  
200  
100  
0
Tanker Operator  
USD -30 million  
(2020: USD 18 million)  
0
2019  
2020  
2021  
2019  
2020  
2021  
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ANNUAL REPORT 2021 NORDEN  
6
IN BRIEF  
FINANCIAL HIGHLIGHTS  
 
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7
NORDEN  
ANNUAL REPORT 2021  
IN BRIEF  
 
The strong Group result achieved in 2021 is  
a reflection of NORDEN’s attractive risk-re-  
ward profile, enabling us to provide our  
customers with a competitive and reliable  
freight service while utilising market volatility  
by acting quickly to capitalise on market  
increases as well as to mitigate the downside  
in weakening markets. This is supported by  
our strong data, analytics and risk manage-  
ment capabilities, which enhance business  
decision-making and our ability to navigate  
market volatilty as well as geopolitical com-  
plexity.  
LETTER FROM THE  
CHAIRMAN AND THE CEO  
Jan Rindbo  
CEO  
Low oil supply coupled with extensive inven-  
USD 205 million net profit – our  
best result in 11 years. Return  
on Equity of 22%. The Board  
proposes a dividend of DKK 18  
per share for 2021.  
tory drawdowns resulted in weak demand  
for crude tankers, which in turn eroded the  
support from improved product tanker mar-  
ket fundamentals.  
Asset Management's portfolio benefitted  
from the extraordinary dry cargo market  
increase, totalling USD 1.3 billion in value  
at year-end. In the second half of 2021, the  
business unit capitalised on high dry cargo  
asset prices through vessel trading and  
entering attractive cover contracts. This is  
expected to positively support earnings in  
2022.  
Based on NORDEN's agile and customer  
centric business model, we have achieved  
sustained growth in activity levels, corre-  
sponding to an increase in vessel days of  
16% per year over the past five years. To  
further support growth, we continue to  
innovate and expand our services. As an ex-  
ample, we have entered into a new business  
area of port logistics, helping our custom-  
ers optimise and decarbonise their supply  
chains, as a natural extension of our custom-  
er service offering. In addition, NORDEN  
has expanded parcelling services, carrying  
multiple cargoes from different customers  
in different locations on one vessel voyage.  
These innovations are an important part of  
NORDEN’s long-term focus on adding value  
to our customers.  
2021 was a remarkable year for NORDEN  
where active trading and record activity  
levels enabled us to capitalise on a strong  
dry cargo market and protect our downside  
in a historically weak tanker market. In terms  
of earnings, Dry Operator stood out, as the  
business unit went from strength to strength  
during the year. This led to the best annual  
result for NORDEN in 11 years, realising a  
profit of USD 205 million in 2021. Sustained  
profitability over the last five years in volatile  
markets is a proof of the strength of our agile  
business model, and we have increased Re-  
turn on Equity significantly from 10% in 2020  
to 22% in 2021.  
Dry Operator demonstrated its ability to cap-  
ture huge value in rising markets. In 1H 2021,  
the business unit significantly expanded its  
vessel capacity at fixed rates, thereby bene-  
fitting from large spot rate increases during  
the second half of 2021. Through active  
trading and utilisation of market volatility, the  
business unit achieved its best result since it  
was formed in 2017.  
Capitalising on market volatility  
Demand for dry cargo commodities im-  
proved much quicker in 2021 than most  
anticipated. Combined with ongoing port  
congestion and delays, this effectively  
created a global shortage of vessels leading  
to a rapid increase in dry cargo market  
rates. Meanwhile, the product tanker market  
remained extremely weak throughout 2021.  
Tanker Operator reduced its exposure and  
optimised cover contracts amid very weak  
markets while preparing for future rate im-  
provements by adding length and option-  
ality to its portfolio. The market value of this  
added optionality has good potential when  
looking into 2022 and 2023.  
Continuing to streamline our  
business model  
Throughout 2021, we have adapted our  
exposure and market position in line with  
market developments, by virtue of the agility  
built into our business model. This approach  
to shipping has continued to prove success-  
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ANNUAL REPORT 2021 NORDEN  
8
IN BRIEF  
LETTER FROM THE CHAIRMAN AND THE CEO  
 
ful again in 2021 and has led us to further  
simplify our business as a next step in be-  
coming even more trading and data driven,  
leveraging in-house knowledge, analytics  
and risk capabilities. From 1 January 2022,  
we have consolidated our three business  
units into two, and we will report our results  
accordingly from 2022.  
Danish shipping company evolving into a  
global business and a leading company in  
our markets. Today, our most important as-  
sets are no longer vessels, but people, data  
and customer relationships. We acknowl-  
edge and would like to thank all seafarers  
on board NORDEN's vessels as well as our  
onshore employees for their extraordinary ef-  
forts and continued patience during difficult  
and unpredictable conditions marked by the  
COVID-19 pandemic.  
Combining the dividend issued in 2021 with  
the increase in share price during the year,  
this amounts to a total shareholder return of  
48%. 2021 was also the year we issued our  
first bonds to the market as part of diversify-  
ing our funding as an asset-light company,  
and we welcomed our bond holders as a  
new investor group.  
Klaus Nyborg  
Chairman  
Assets & Logistics is the name of our busi-  
ness unit focused on investments. Asset  
Management, which handles asset trading  
and active portfolio management, is joined  
by Logistics & Climate Solutions, a newly  
established team which will work to deliver  
efficient and more sustainable supply chain  
solutions. In early 2022, NORDEN entered  
into a major port logistics contract in Gabon,  
Central Africa, whereby NORDEN is respon-  
sible for setting up and operating a trans-  
shipment solution for a large manganese  
mining company over a 10-year period. We  
are excited to extend our business beyond  
a standard freight service and become an  
innovative supply chain partner. Freight  
Services & Trading is our asset-light business  
unit which groups NORDEN’s short-term  
freight activities formerly organised in Dry  
Operator and Tanker Operator.  
For 2022, our business is well positioned  
to continue capitalising on market volatility,  
favourable cover contracts, ongoing asset  
trading opportunities and vessel options  
at profitable levels. We therefore expect  
another strong result with a profit for the year  
in the range of USD 210 to 280 million (incl.  
currently known vessel sales gains of USD 37  
million). Based on our asset-light business  
model, we aim to deliver strong recurring  
returns to our investors by being the first  
choice among customers, enhancing our  
trading focus through world-class data and  
risk capabilities and by helping our custom-  
ers decarbonise their supply chains.  
One Sustainable NORDEN  
Throughout 2021, we continued to strength-  
en our sustainability efforts, which are inte-  
grated into our business and underpin how  
we operate today. NORDEN outlined five cli-  
mate commitments that will direct our efforts  
for the years to come as a part of helping our  
customers decarbonise their supply chains.  
We enhanced our focus on diversity as well  
as employee wellbeing and developed a  
new Diversity, Equity & Inclusion policy im-  
plementing targets for business unit gender  
ratio and improving conditions for maternity  
and paternity leave.  
Klaus Nyborg  
Chairman of the  
Board of Directors  
Returning capital to shareholders  
and welcoming bond investors  
Following very strong full-year results and a  
strong balance sheet, the Board of Directors  
proposes a dividend of DKK 18 per share,  
representing 54% of the Adjusted Result.  
This is line with our dividend policy return-  
ing minimum 50% of the annual adjusted  
result. In addition, we will initiate a new share  
buy-back programme of USD 30 million,  
which will run until the end of April 2022. This  
comes on top of USD 33 million returned in  
share buy-back programmes during 2021.  
Jan Rindbo  
CEO  
150 years of commodity shipping  
across the world  
This year, we celebrated our 150th anniversa-  
ry. Among the celebrations with employees,  
customers, business partners and former  
employees, NORDEN marked the anniver-  
sary with the launch of a book, “The Norden  
Voyage”, written by Martin Jes Iversen, which  
outlines the history of NORDEN. We are very  
proud of our legacy and origins as a small  
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LETTER FROM THE CHAIRMAN AND THE CEO 9  
NORDEN  
ANNUAL REPORT 2021  
IN BRIEF  
 
KEY FIGURES AND FINANCIAL RATIOS  
Amounts in USD million  
2021  
2020  
2019  
2018  
2017  
2021  
2020  
2019  
2018  
2017  
Income statement  
Revenue  
Share-related key figures and financial ratios  
3,551.8  
649.6  
532.2  
7.7  
2,597.8  
435.6  
342.5  
-18.2  
2,583.9  
295.0  
217.5  
-3.6  
2,451.4  
132.3  
72.5  
1,808.6  
116.8  
68.1  
No. of shares of DKK 1 each  
(including treasury shares)  
39,200,000 40,700,000 42,200,000 42,200,000 42,200,000  
Contribution margin  
EBITDA  
No. of shares of DKK 1 each  
(excluding treasury shares)  
36,763,061 37,805,533 39,311,533 39,923,933 40,467,615  
2,436,939 2,894,467 2,888,467 2,276,067 1,732,385  
Profit/(loss) from sale of vessels etc.  
8.8  
0.9  
Number of treasury shares  
Depreciation, amortisation and  
impairment losses  
Earnings per share (EPS), DKK  
34  
14  
3
4
4
-295.5  
245.5  
-34.8  
-201.9  
119.4  
-26.7  
86.0  
-156.9  
56.8  
-44.3  
39.4  
-6.9  
-42.2  
23.3  
-0.9  
Diluted earnings per share  
(diluted EPS), DKK  
EBIT  
34  
18.0  
14  
9.0  
3
2.5  
4
2.0  
4
-
Financial items, net  
Profit for the year  
Adjusted Result for the year 1)  
-32.7  
19.2  
Dividend per share, DKK  
204.5  
197.7  
28.8  
20.0  
24.6  
28.4  
Book value per share, DKK  
170  
145  
146  
135  
92.4  
128  
116.5  
105.7  
22.8  
Share price at year-end, per share DKK 1  
166.4  
109.6  
106.7  
Statement of financial position  
Total assets  
Other key figures and financial ratios  
EBITDA ratio  
2,453.5  
993.3  
1,824.8  
902.5  
1,742.4  
859.0  
1,464.4  
826.8  
637.6  
970.2  
-143.4  
188.6  
1,326.5  
834.4  
492.1  
836.7  
-2.3  
15.0%  
17.1%  
21.6%  
49.1%  
40.5%  
1.0  
13.2%  
9.4%  
8.4%  
5.0%  
3.0%  
4.4%  
3.8%  
2.9%  
3.0%  
-
Equity  
ROIC  
Liabilities  
1,460.2  
1,631.0  
-637.7  
410.7  
922.3  
883.4  
ROE  
9.8%  
2.3%  
3.5%  
Invested capital  
Net interest-bearing debt  
Cash and securities  
1,246.3  
-343.8  
331.6  
1,283.5  
-424.5  
209.3  
Payout ratio (excluding treasury shares) 4)  
65.3%  
49.5%  
0.8  
76.6%  
49.3%  
0.7  
41.7%  
56.5%  
0.7  
Equity ratio  
62.9%  
0.9  
219.4  
Price/book value  
Total no. of vessel days  
USD rate at year-end  
Average USD rate  
170,270  
656.12  
629.18  
153,195  
605.76  
653.43  
138,327  
667.59  
667.03  
122,852  
651.94  
631.74  
93,738  
620.77  
659.53  
Cash flows  
From operating activities  
From investing activities  
433.9  
2.6  
396.0  
-45.1  
280.5  
-90.9  
-15.8  
-78.4  
6.3  
-0.2  
- hereof investments in property,  
plant and equipment  
Key figures for 2017-2018 are not restated to reflect IFRS 16.  
-92.1  
-27.1  
-102.7  
-211.2  
-202.7  
95.4  
-75.4  
3.0  
The ratios were computed in accordance with “Recommendations and Financial Ratios” issued by the Danish Association  
of Financial Analysts. However, “Profit/(loss) from sale of vessels etc.” is not included in EBITDA. Please see definitions in the  
Definitions of key figures and financial ratios section within this report. The figures are adjusted for the Company’s holding of  
treasury shares.  
From financing activities  
-261.9  
-228.2  
Environmental and social figures  
EEOI 2)  
LTIF (million working hours) 3)  
1)  
2)  
3)  
4)  
Adjusted Result for the year is computed as “Profit/loss for the period” adjusted for “Profit/(loss) from sale of vessels etc.”  
including adjustment for sale of vessels in joint ventures.  
8.6  
0.8  
8.8  
0.6  
8.7  
1.5  
8.6  
0.3  
8.8  
1.6  
The Energy Efficiency Operational Indicator (EEOI) is a measurement of efficiency and is defined as the amount of CO2 emit-  
ted per tonne of cargo transported 1 mile.  
Lost Time Injury Frequency (LTIF) is the frequency a seafarer is unable to work for more than 24 hours per 1 million working  
hours due to work-related injury.  
The payout ratio was computed based on proposed dividends for the year, including extraordinary dividends paid during the  
year.  
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ANNUAL REPORT 2021 NORDEN  
10  
IN BRIEF  
KEY FIGURES AND FINANCIAL RATIOS  
 
Forward-looking statements  
This annual report contains certain forward-looking  
statements reflecting Management’s present judge-  
ment of future events and financial results.  
OUTLOOK FOR 2022  
Statements relating to 2022 and the years ahead are in-  
herently subject to uncertainty, and NORDEN’s realised  
results may therefore differ from projections.  
Factors that may cause NORDEN’s realised results to  
differ from the projections in this annual report include,  
but are not limited to: Changes to macroeconomic and  
political conditions – particularly in the Group’s princi-  
pal markets; changes to NORDEN’s rate assumptions  
and budgeted operating expenses; volatility in freight  
rates and tonnage prices; regulatory changes; counter-  
party risks; any disruptions to traffic and operations as a  
result of external events etc.  
Freight Services & Trading  
Events after the reporting date  
Based on good positioning and  
active trading in a continued  
strong and volatile dry cargo  
market, NORDEN expects profit  
for the year to improve further to  
a range of USD 210-280 million  
(incl. currently known vessel sales  
gains of USD 37 million).  
The Freight Services & Trading business  
unit, which is the combination of the Dry  
Operator and Tanker Operator business  
units, expects a net result somewhat lower  
than the combined result for the two oper-  
ators in 2021. The expectation is based on  
continued 5-10% growth in activity and a  
margin per vessel day which is higher than  
the average realised over the last 3 years  
but below the record level from last year  
(see table). The business unit remains well  
positioned in a still strong and volatile dry  
cargo market and has been able to add val-  
ue during recent volatility. The expectation  
is also based on a still weak tanker market  
which is not expected to improve noticeably  
until the second half of the year.  
No significant events have occurred be-  
tween the reporting date and the publica-  
tion of this annual report, which have not  
already been included and adequately  
disclosed in the annual report, and which  
materially affect the assessment of the  
Company’s and Group’s results of opera-  
tions or financial position.  
In line with its growing vessel sale and  
purchase activity, NORDEN will start to  
include gains and losses from vessel sales  
in its profit guidance. Hence, the adjusted  
net profit will no longer be used. This also  
affects the dividend policy which from now  
on will be to pay out minimum 50% of profit  
for the year (instead of adjusted net result).  
Financial calendar for 2022  
Combined results - Freight Services & Trading  
3 March  
24 March  
5 May  
Annual report 2021  
Year  
2021  
Annual general meeting  
Interim report – first quarter 2022  
Vessel days  
164,189  
1,214  
638  
Margin per vessel day  
3-year average margin per vessel day  
18 August  
Interim report – second quarter  
and first half-year 2022  
4 November Interim report – third quarter 2022  
Seasonality and uncertainty  
Assets & Logistics  
For both business units, the distribution  
of earnings per quarter is expected to be  
more front loaded than normal. Given the  
escalating conflict in Ukraine, remaining  
COVID-19 disruption and macroeconom-  
ic uncertainties in general, the market  
uncertainty and volatility is expected to  
remain elevated. New sanctions targeted  
at Russian exports may emerge which on  
balance is expected to be slightly negative  
for dry cargo rates and slightly positive for  
tanker rates. However, NORDEN’s business  
model is well equipped to manage this  
uncertainty.  
Proforma profit/loss 2021 - New business unit structure from January 2022 (un-audited)  
The Assets & Logistics business unit ex-  
pects much better earnings in 2022 based  
on high coverage at attractive rates on the  
dry cargo fleet entered into during 2021.  
Furthermore, high coverage on the tanker  
fleet means that the business unit is well  
protected against the weak tanker market.  
In addition, vessel sales gains are expect-  
ed to contribute positively based on the  
increases in dry cargo vessel values seen  
during 2021.  
Freight  
Asset & Services &  
FY2021  
Logistics  
Trading  
Group  
Contribution margin  
Overhead and administration  
EBITDA  
204.1  
-11.4  
192.7  
7.7  
445.5  
-106.0  
339.5  
-
649.6  
-117.4  
532.2  
7.7  
Profit/(loss) from sale of vessels, etc.  
Depreciation, amortisation and impairment losses  
Share of result from joint ventures  
EBIT  
-168.3  
1.1  
-127.2  
-
-295.5  
1.1  
33.2  
-28.1  
5.1  
212.3  
-12.9  
199.4  
199.4  
245.5  
-41.0  
204.5  
197.7  
Financials and tax  
Profit /loss  
Adjusted Result  
-1.7  
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OUTLOOK FOR 2022 11  
NORDEN  
ANNUAL REPORT 2021  
IN BRIEF  
 
STRATEGY  
13 NORDEN strategy  
14 Strategic focus areas  
15 Investor information  
19 Risk management  
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—
NORDEN  
12  
STRATEGy  
ANNUAL REPORT 2021  
 
Major trends affecting shipping  
NORDEN strategy  
Market  
volatility  
Customer centric freight services  
across all continents  
Optionality upside on leased vessels  
Tradable assets and positions  
Digitalisation  
Geopolitical  
complexity  
Data, analytics and risk management  
integrated in all business decisions  
Decarbonisation  
Partnerships to accelerate digital  
and green transformation  
Frontrunners on decarbonisation  
ENABLING SMARTER GLOBAL TRADE  
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13  
NORDEN  
ANNUAL REPORT 2021  
STRATEGy  
 
STRATEGIC FOCUS AREAS  
TRADING TO THE NEXT LEVEL  
ONE SUSTAINABLE  
NORDEN  
DATA  
AS AN ASSET  
CLIENTS  
AMBITIONS  
The preferred choice for clients.  
Innovative new freight products to  
selected clients  
Use data to drive continuous improvements.  
Data driven predictions and decision-making  
Consolidation of business model.  
Economical, organisational and  
environmental sustainability  
HIGHLIGHTS IN 2021  
•
Record high activity levels, with 11% growth in total ves-  
sel days and 13% increase in number of customers  
•
Developed advanced weather predictions for pricing  
future cargoes  
•
•
New and simplified business unit structure  
Established a new procurement function to profession-  
alise purchasing  
Employee health initiative for global staff  
Updated and integrated Diversity, Equity & Inclusion  
policy  
•
•
Expanded parcelling services in specific geographies  
•
Developing a more advanced pricing tool for port cost  
estimation  
•
•
Established a dedicated tanker pool development team  
to grow our commercial management of tanker vessels  
•
•
•
Automated the commissions payment process  
•
•
Established a Logistics & Climate Solutions team to cre-  
ate value deeper in the supply chains of our clients  
•
Launched climate strategy and climate commitments  
Multiple algorithmic trading models running profitably  
First to market with pre- and post voyage carbon emis-  
sions reporting to clients  
Initiated the first port logistics project, entering into a  
10-year contract for delivering transshipment services  
in Gabon  
•
Improved vessel fuel consumption predictability by 13%  
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ANNUAL REPORT 2021 NORDEN  
14  
STRATEGy  
STRATEGIC FOCUS AREAS TRADING TO THE NExT LEVEL  
 
INVESTOR INFORMATION  
Total shareholder returns 2015-2021  
Trading volume  
As a long-term investment, the  
NORDEN share is based on  
the Company’s agile and asset-  
light business model. Based on  
industry leading global freight  
services, asset trading and  
logistics services, supported by  
superior data analytics and risk  
management capabilities, the  
business model enables NORDEN  
to capitalise on volatile markets.  
On average, 152,611 shares were traded  
on a daily basis on Nasdaq Copenhagen in  
2021, which is a decrease of 13% compared  
to 2020. The average daily trading value on  
Nasdaq OMx Copenhagen increased by  
48% from DKK 16.1 million in 2020 to DKK  
23.8 million in 2021.  
Index  
180  
160  
140  
120  
100  
80  
60  
Share buy-backs and dividends  
40  
20  
In line with a continued strong earnings  
performance and the Company’s asset-light  
strategy, NORDEN continues to return  
capital to shareholders in the form of both  
dividends and share buy-backs. In 2021, a  
total of 1,481,230 shares were acquired in  
share buy-backs at a total purchase price of  
USD 33 million. As a result, NORDEN had  
2,436,939 treasury shares at the end of 2021.  
0
2015  
2016  
Peers  
Note: The total return measured as the total value of dividend payments and share price increases expressed in USD.  
2017  
2018  
2019  
2020  
2021  
NORDEN  
MSCI World Transportation Index  
The total return of the peer group is calculated based on ten dry cargo companies and eight product tanker companies each  
weighted by their market capitalisation.  
Shareholder return of 48%  
NORDEN’s share price increased during  
2021 from DKK 109.6 to DKK 166.4. When  
including a dividend of DKK 9 per share is-  
sued for the previous year, the total share-  
holder return measured in USD was 48% in  
2021. NORDEN aspires to not only bench-  
mark its total shareholder returns against  
relevant shipping peers, but also share  
indices that reflect the global transporta-  
tion sector. Comparing total shareholder  
returns since 2015 where the Company  
shifted its strategic focus, the NORDEN  
share has performed significantly above  
the peer group of dry cargo and product  
tanker companies. In the same period, the  
NORDEN share has performed below the  
MSCI World Transportation Index.  
The Board of Directors recommends for  
approval at the annual general meeting that  
a dividend of DKK 18 per share is paid to  
the shareholders.  
Share price and trading volume 2021  
DKK  
200  
No. of shares  
700,000  
600,000  
500,000  
400,000  
300,000  
200,000  
100,000  
0
180  
160  
140  
120  
100  
80  
When combining share buy-backs, paid  
dividends and proposed dividends for the  
year, NORDEN has returned over USD 260  
million to shareholders since 2018 (see  
chart on the following page).  
Currently, the Board of Directors has a  
1-year authority to acquire treasury shares  
at market price up to a nominal value not  
Jan 21 Feb 21 Mar 21 Apr 21 May 21 Jun 21 Jul 21 Aug 21 Sep 21 Oct 21 Nov 21 Dec 21  
Traded shares per day Share price  
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INVESTOR INFORMATION 15  
NORDEN  
ANNUAL REPORT 2021  
STRATEGy  
 
exceeding 10% of the share capital and a  
5-year authority to increase the share cap-  
ital by a nominal value of 10%. The latter is  
effective until April 2022.  
information in relation to change-of-con-  
trol provisions. In the event of a change of  
control in the Company, bank agreements  
can be subject to renegotiations. No other  
important agreements are in place with  
business partners, which could be termi-  
nated in case of a change of control.  
Dividends and share buy-backs since 2018  
USD million  
33  
105  
2021  
205  
Investor relations  
24  
15  
56  
2020  
2019  
2018  
86  
At year-end 2021, NORDEN was monitored  
by two equity analysts and two credit ana-  
lysts. During 2021, investor presentations  
were to a large part conducted online due  
to the ongoing presence of COVID-19. In  
line with this, NORDEN has partnered with  
an external IR service provider to facilitate  
online presentations that are free to access  
for all investors, and which can be subse-  
quently streamed online.  
9
19  
12  
Bond issue  
6
In June 2021, NORDEN issued USD 100  
million in 3-year senior unsecured bonds as  
part of diversifying the Company’s funding  
as an asset-light business. The bonds will  
mature 28 June 2024, and the initial place-  
ment was made under a USD 150 million  
frame allowing for additional bonds to  
be issued. The bonds were subsequently  
listed on Nasdaq Copenhagen’s regulated  
market with the first day of trading on 15  
October 2021.  
29  
0
50  
100  
Profit/loss  
150  
200  
250  
Share buyꢀbacks  
Dividends  
Note: Dividends are based on the same financial year as the Adjusted Result, not the year they are paid out. The dividend  
amounts outlined exclude treasury shares held by NORDEN  
Disclosure regarding change of control  
The Danish Financial Statements Act  
requires listed companies to disclose  
Equity Story  
Trading-oriented and agile business  
Asset-light business capitalising  
on volatile markets, continuously  
adapting to market and customer  
demands across global markets  
Superior data analytics capabilities  
Advanced data analytics enabling  
stronger predictions and business  
decisions in a fragmented and  
analogue industry  
Sustainable supply chain solutions  
Providing greener shipping  
solutions to help customers  
decarbonise their supply chains,  
while gradually reducing emissions  
towards zero  
Strong risk/reward profile  
Attractive risk/reward profile with  
upside from vessel options in rising  
markets and resilience in falling  
markets from contract cover  
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ANNUAL REPORT 2021 NORDEN  
16  
STRATEGy  
INVESTOR INFORMATION  
 
Composition of shareholders  
Master data – NORDEN share  
5%  
Share capital  
DKK 39.2 million  
39,200,000 of DKK 1  
2,436,939  
Total number of shares  
Treasury shares (NORDEN)  
30%  
(at 31 December 2021)  
36%  
Classes of shares  
1
Voting and ownership restrictions  
None  
6%  
Stock exchange  
Ticker symbol  
ISIN code  
Nasdaq OMX Copenhagen  
DNORD  
23%  
DK0060083210  
DNORD.DC  
A/S Motortramp, Stensved, Denmark  
NORDEN (treasury shares)  
Other top 20 shareholders  
Other registered  
Bloomberg code  
Reuters code  
DNORD.CO  
Non-registered  
Note: of the total share capital at 31 December 2021  
Master data – NORDEN bond  
Amount issued  
USD 100 million  
USD 150 million  
Maximum issue amount  
Duration and type  
Coupon  
3-year senior unsecured  
LIBOR 3 months + 4.75%  
28 June 2021  
Issue date  
Maturity date  
Stock exchange  
Shortname  
28 June 2024  
Nasdaq OMX Copenhagen  
D/S NORDEN 21/24 FRN USD  
NO0011036162  
ISIN code  
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INVESTOR INFORMATION 17  
NORDEN  
ANNUAL REPORT 2021  
STRATEGy  
 
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NORDEN  
18  
STRATEGy  
ANNUAL REPORT 2021  
 
RISK MANAGEMENT  
In volatile markets, active and  
smart management of freight and  
asset price risks is a core part of  
the value creation in NORDEN.  
Continued strengthening  
of Risk Management  
New Group market risk framework  
ensures transparency during  
extraordinarily volatile markets  
After its implementation during the second  
half of 2020, the new Group market risk  
framework has provided transparency and  
strong control on risk taking not only within  
but also across business units.  
As a response to this, a dedicated team  
with responsibility for sanctions compli-  
ance has been established as a part of Risk  
Management.  
NORDEN’s risk management capabilities  
have been significantly strengthened in  
recent years with the establishment of  
both a Risk Committee under the Board of  
Directors and a separate Risk Management  
Team.  
In January 2022, a revised sanctions com-  
pliance programme was implemented. The  
programme includes a new and automated  
sanctions screening solution of all coun-  
terparties and vessels, behavioural risks  
screening and a strong focus on awareness  
by all employees of the Group.  
Active risk management plays a key role  
in NORDEN’s goal to generate attractive  
risk-adjusted returns in volatile freight and  
asset markets.  
The purpose of the Risk Committee is to  
assist the Board of Directors in its oversight  
of the overall risk-taking tolerance and  
management of market, credit and liquidity  
risks.  
The new Group market risk framework,  
combined with NORDEN’s already strong  
risk culture, has supported the business  
units to navigate through extraordinarily  
volatile markets moving risks to where the  
risk-adjusted return is perceived to be the  
most attractive.  
NORDEN’s market presence, combined  
with strong relationships with customers  
and tonnage providers all over the world,
gives access to market liquidity and insight  
that most of our competitors do not have.  
Continued focus on credit risk  
A new credit risk framework will be imple-  
mented during 2022.  
The Risk Management Team consists of ten  
people with backgrounds within mathe-  
matics, physics, finance, economics and  
shipping. The responsibility of the Risk  
Management Team is to identify, quantify,  
monitor and report risk use and limits to  
the Board of Directors, the Risk Commit-  
tee, Executive Management, business unit  
leaders and Profit Center leaders.  
This access to market liquidity and insight,  
combined with in-house research and  
sophisticated trading models, is used to  
create value by actively taking risk within  
freight and asset markets.  
New liquidity risk framework  
implemented  
As with the market risk frameworks, the  
credit risk framework will include a formal  
connection between credit risk capital and  
credit risk limits, ensuring that the freight  
traders take all variables into consideration  
when entering into new business, with  
the ultimate target of providing the best  
risk-adjusted return.  
A new liquidity risk framework was imple-  
mented during 2021. The framework is  
designed to give business units freedom  
to trade while at the same time ensuring  
strong control of liquidity, enabling contin-  
ued growth of business activities.  
All other risks are mitigated to the extent  
possible.  
To make sure that the Risk Management  
Team is an integrated part of daily busi-  
ness, it is situated on the trading floor, as  
this allows the team to provide business  
units with regular and ad hoc analysis as  
well as to challenge their risk taking.  
Revised sanctions compliance  
programme  
The use of sanctions is continuously in-  
creasing, while at the same time sanctions  
regimes are getting more complex.  
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RISK MANAGEMENT 19  
NORDEN  
ANNUAL REPORT 2021  
STRATEGy  
 
MATERIAL RISKS  
Below is a review of the material risks. For a review of the financial risks, refer to note 4.1 "Financial risk management" on page 94.  
Risk  
NORDEN mitigation  
Risks actively taken  
Freight rate risks  
Entering charter and cargo contracts exposes NORDEN to freight  
rate risks, as the Company assumes financial liability in expectation  
of generating earnings which are dependent on the freight market.  
NORDEN manages freight rate risks by adhering to a strict Group market risk framework with specific limits for the Group,  
business units and Profit Centers. The limits are designed to ensure that a prudent capital structure can be maintained  
over time.  
Asset price risks  
Owning vessels exposes NORDEN to asset price risks from changes  
in asset values, both directly on the value of the owned fleet and  
indirectly through the value of purchase options.  
NORDEN manages asset price risks by adhering to a strict Group market risk framework with specific limits for the Group,  
business units and Profit Centers. The limits are designed to ensure that a prudent capital structure can be maintained  
over time.  
Other risk factors  
Bunker price risks  
Bunkers is one of NORDEN’s largest variable costs as entering  
cargoes at a fixed price exposes the Company to changes in the  
bunker price.  
NORDEN measures bunker price exposure on a daily basis and uses bunker swaps to hedge such bunker risk. However,  
the price spread risk in relation to scrubbers is only partly hedged, mainly by charter contracts but also by using bunker  
swaps.  
Furthermore, in connection with charter contracts, the Company has  
a bunker price risk in relation to the quantity of bunkers on board  
and the quantity the vessel must be redelivered with.  
For vessels where a scrubber has been installed, the Company is  
subject to risk related to the spread between high sulphur and low  
sulphur fuel.  
Credit risks  
Performing services for customers against future payment  
or prepaying suppliers means that NORDEN runs a risk that  
counterparties do not perform as agreed.  
NORDEN reduces credit risks through systematic assessment and monitoring of the creditworthiness of each  
counterparty. For this purpose, internal analyses are made based on input from external credit rating agencies and other  
publicly available information. Each analysis results in an internal credit rating which is subsequently used in NORDEN’s  
determination of the allowed scope of the commitment.  
Sanctions risks  
NORDEN engages with a significant amount of counterparties, often  
with complex ownership structures, and vessels, either by chartering  
in or out but also by ship-to-ship operations. There is a risk that such  
counterparties or vessels are subject to sanctions.  
NORDEN has implemented a sanctions compliance framework and reduces sanctions risks through pre-fixture and post-  
fixture sanctions screening of counterparties including the counterparty chain, screening of sanctions and behavioural risk  
indicators of vessels. Also, employees receive regular training in sanctions compliance.  
IT & cyber security risks  
NORDEN’s operations are very dependent on stable IT systems. This  
implies a risk related to unavailability of systems and data either due  
to technical malfunctions or external interferences such as hacking.  
NORDEN mitigates cyber security risks through robust procedures for backups, security upgrades etc. and has ongoing  
awareness campaigns for employees. In addition, NORDEN has established a technical emergency capacity with an  
IT environment distributed to two locations with mirrored critical systems. Besides having two sites for IT systems in  
production, two separate sites contain individual data backups. The Company has established a disaster recovery plan  
involving the entire organisation and supporting the IT Department in setting up emergency operations as soon as  
possible in a disaster or cyber security incident situation. NORDEN also has an external team monitoring all security  
events 24/7.  
Security risks  
As part of the Company's shipping operations, NORDEN is on a  
regular basis trading vessels in high-risk areas where the vessels and  
the crew could be exposed to acts of piracy, including kidnapping  
of crew.  
NORDEN mitigates security risks by appropriate security practices and various protective installations on owned vessels.  
Furthermore, NORDEN has in place an internal security risk function that assesses security risks on an ongoing basis in  
conjunction with risk intelligence providers and military organisations.  
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ANNUAL REPORT 2021 NORDEN  
20  
STRATEGy  
MATERIAL RISKS  
 
Risk  
NORDEN mitigation  
Other risk factors  
Safety risks  
Due to vessels being a high-risk workplace, there is a risk of  
accidents on NORDEN’s own or chartered in vessels where the crew  
can be injured.  
NORDEN seeks to minimise accidents by operating a well-maintained fleet and by using respectable ship managers that  
are responsible for ensuring a strong safety performance by having comprehensive procedures and a well-educated and  
trained crew. Potential financial impacts related to damages and total loss of vessels, but excluding existing charter parties,  
are covered by insurances taken out with recognised international insurance companies.  
Furthermore, there is a risk of NORDEN’s own or chartered in vessels  
being damaged. The most material risk would be a total loss of  
owned vessels, combined with the loss of existing charter parties.  
Environmental risks  
When operating vessels, there is a risk of accidents that can impact  
the environment negatively. The most material risks are oil spills  
and discharges of waste or ballast water, potentially impacting  
ecosystems and human health. Furthermore, there is a risk that  
vessels sold by NORDEN are disposed of by their new owners in an  
unsustainable way shortly after the transaction.  
NORDEN focuses on minimising accidents by operating a well-maintained fleet and by using respectable ship managers  
that are responsible for ensuring a strong safety performance by having comprehensive procedures and a well-educated  
and trained crew. Potential financial impacts are covered by insurances taken out with recognised international insurance  
companies.  
NORDEN requires that buyers of vessels, if the price is less than 25% above scrap value, must accept a clause stating  
that any disposal of the vessel must be done responsibly at a facility in accordance with the Hong Kong convention. Any  
resales of the same vessels must, if within six months of the transaction with NORDEN, include the same clause.  
Climate risks  
NORDEN is exposed to delays or changes to trading patterns due  
to climate changes, as these are leading to more severe weather  
including, but not limited to, more frequent hurricanes, flooded  
ports and delays. Furthermore, the threat of global warming may  
lead to new regulations, which may impose added costs on the  
Company’s activities or reduce freight rates by lowering demand for  
the Company’s services.  
NORDEN mitigates the risk posed by changing weather patterns through better contract clauses and more extensive use  
of weather data when pricing and assessing the risk of contracts.  
NORDEN has mitigated the risk of negative financial impact from new regulations by making our business model more  
agile and flexible. Thus, NORDEN is growing the Company's operator activities which are relatively insulated from such  
risks and has in recent years reduced the dependence on having an owned fleet which is subject to residual value risk.  
Corruption risks  
NORDEN’s commercial employees risk being exposed to corruption  
as they engage in business with external parties. Furthermore, crew  
on NORDEN’s owned or chartered in vessels risk being exposed to  
corruption when calling ports or passing canals in certain areas of  
the world.  
NORDEN mitigates the risk of the Company's commercial employees being involved in corruption by training and by  
having a strong culture of anti-corruption. The risk of crew on NORDEN’s owned vessels being involved in bribery is  
mitigated by using respectable ship managers responsible for comprehensive procedures and a well-educated and  
trained crew.  
Furthermore, the risk of crew on NORDENs chartered in vessels being involved in corruption is mitigated by requiring  
owners to accept an anti-corruption clause that amongst others includes zero tolerance against bribery.  
Human rights risks  
Violations of human rights may occur across the entirety of the  
global supply chain, especially related to the production, extraction  
and processing of raw materials. Engaging with hundreds of  
counterparties, NORDEN risks engaging in business relationships in  
which suppliers or sub-suppliers may violate human rights.  
NORDEN mitigates the risk of inadvertently violating human rights by conducting due diligence on, and communicating  
expectations to, key stakeholders. NORDEN expects all business relationships directly linked to NORDEN to respect  
human rights. NORDEN’s commitment to human rights is outlined in the Company’s Human Rights policy, which is further  
operationalised in NORDEN's Employee Code of Conduct, Supplier Code of Conduct and Responsible Supply Chain  
Management process. Suppliers are expected to implement a due diligence process and remediation system and inform  
NORDEN if they identify that they cause, contribute, or are linked to severe human rights impacts.  
Furthermore, NORDEN evaluates the risk of adversely impacting the International Bill of Human Rights through a bi-  
annual Human Rights Impact Assessment.  
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MATERIAL RISKS 21  
NORDEN  
ANNUAL REPORT 2021  
STRATEGy  
 
BUSINESS  
PERFORMANCE  
23 Group financial review  
24 Asset Management  
29 Dry Operator  
32 Tanker Operator  
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—
NORDEN  
22  
BUSINESS PERFORMANCE  
ANNUAL REPORT 2021  
 
GROUP FINANCIAL REVIEW  
and an Adjusted Result of USD 120 million  
(Q4 2020: USD 21 million). The full-year  
Financial position  
Cash flow from investing activities was USD  
• Profit of USD 205 million  
NORDEN's total asset value increased to USD 3 million (USD -45 million), as investments  
• Return on Equity of 21.6%  
profit for Asset Management amounted to  
USD 5 million (USD 9 million).  
2,454 million in 2021 (USD 1,825 million) as a  
result of working capital built up and capital-  
isation of leases following the increased rate  
and activity levels. Total equity increased to  
USD 993 million (USD 903 million) mainly due -262 million (USD -228 million), mainly due  
to the profit generated less ordinary dividend to instalments on lease liabilities and dis-  
in dry cargo vessels were more than offset  
by proceeds from sale of vessels.  
• Cash flow from operations  
of USD 434 million  
Gains from vessel sales included in this  
amount was USD 7 million during the year  
(USD -20 million).  
Cash flow from financing activities was USD  
Financial highlights  
The Group delivered its best financial perfor-  
mance in 11 years with a net profit of USD 205 Dry Operator actively built up a significant  
million (USD 86 million) corresponding to a  
Return on Equity of 21.6% (9.8%).  
payments of USD 53 million and share buy-  
backs of USD 33 million.  
tribution of USD 86 million to shareholders  
offset by USD 100 million raised through  
the issue of a 3-year bond.  
long position at the beginning of the year  
and utilised the increase in dry cargo spot  
rates to generate an outstanding result, with  
a profit for the year of USD 230 million (USD  
59 million).  
The equity ratio remained strong at 40.5%  
(49.5%) despite being impacted by the larger  
balance sheet.  
Total cash and cash equivalents increased  
by USD 79 million to USD 411 million (USD  
332 million), which compares to total inter-  
est-bearing debt excluding lease liabilities  
of USD 342 million. As of 31 December  
2021, NORDEN had undrawn credit facilities  
of USD 150 million.  
The Adjusted Result, excluding the effect of  
vessel sales, was USD 198 million (USD 106  
million) in line with the updated expec-  
tations announced in November 2021 of  
between USD 150-200 million.  
Cash flows and liquidity  
In a tanker market year characterised by very  
weak rate levels and a challenging market  
environment with a reduced oil demand,  
Tanker Operator generated a loss of USD 30  
million (profit of USD 18 million).  
Cash flow from operating activities was USD  
434 million in 2021 compared to USD 396  
million in 2020. The increase is mainly driven  
by a positive change in EBITDA partly offset  
by increased working capital.  
For Q4 2021, the Group realised a net profit  
of USD 123 million (Q4 2020: USD 3 million)  
Based on the strong liquidity position and  
expectations of further operating cash  
flow generation in 2022, NORDEN initiated  
a share buy-back programme of USD 40  
million in 2021.  
Result by quarter 2021  
Result last 5 years  
Result per business unit  
USD million  
140  
120  
100  
80  
USD million  
210  
180  
150  
120  
90  
USD million  
280  
240  
200  
160  
120  
80  
Impairment assessment  
NORDEN has at year-end 2021 performed  
impairment tests for the CGUs Dry Cargo  
and Tankers, and based on these, Manage-  
ment has assessed that there is no need for  
impairment or reversal of previously recog-  
nised impairments. For a more detailed de-  
scription, refer to note 3.1 "Tangible assets"  
in the Consolidated Financial Statements.  
60  
40  
60  
20  
40  
30  
0
0
ꢀ20  
0
ꢀ40  
Q1  
Q2  
Q3  
Q4  
Asset  
Dry  
Tanker  
2017 2018 2019 2020 2021  
Management  
Operator  
Operator  
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GROUP FINANCIAL REVIEW 23  
NORDEN  
ANNUAL REPORT 2021  
BUSINESS PERFORMANCE  
 
ASSET  
MANAGEMENT  
Highlights 2021  
Results  
5
USD million  
profit  
7
1,347  
USD million profit  
from sale of vessels  
USD million  
market value of  
vessel portfolio  
Fleet overview  
37  
72  
Owned vessels  
Leased vessels  
65,754  
71  
Period extension  
option days  
Purchase options  
Asset Management manages asset trading and active portfolio management of owned  
and leased vessels.  
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ANNUAL REPORT 2021 NORDEN  
24  
BUSINESS PERFORMANCE  
ASSET MANAGEMENT  
 
ASSET MANAGEMENT  
Asset Management. Vessel trading in 2021  
NORDEN has utilised four 1-year extension  
options during 2021. At the end of 2021,  
the portfolio of leased vessels included  
71 purchase options, with 53 of these  
purchase options being callable before the  
end of 2024. NORDEN had a total of 65,754  
extension option days at the end of 2021  
(see overview of options on the following  
page). This optionality is expected to pro-  
vide attractive opportunities for NORDEN  
going forward.  
Dry cargo asset and period market rates  
A strong dry cargo market in 2021 signif-  
icantly increased both asset prices and  
period rates. During Q4, the combination  
of a severe slowdown in China’s property  
sector and reduced Chinese coal imports  
due to higher own production created a  
brief but steep drop in both asset prices  
and time charter rates. However, demand  
remained strong outside China, and  
congestion and inefficiencies remained  
elevated, causing the market to rebound  
towards year-end.  
• Profit of USD 5 million  
amounted to 45 transactions, consisting of  
5 purchases, 15 sales, 10 leases in and 15  
leases out.  
• Active asset trading and  
significant optionality upside  
• Positioned for significantly  
improved 2022 earnings based  
on dry cargo cover contracts  
Portfolio value  
At the end of 2021, the market value of  
Asset Management’s portfolio of owned  
and leased vessels was an estimated USD  
1,347 million.  
Results and activity  
The full-year profit for Asset Management  
amounted to USD 5 million (USD 9 million),  
which includes vessel sales gains of USD 7  
million. Due to Asset Management’s busi-  
ness model of operating with high forward  
coverage, the strong dry cargo market will  
benefit 2022 earnings where a significant  
improvement is expected.  
The value of owned vessels and newbuild-  
ing orders, including joint ventures and as-  
sets held for sale, amounted to USD 1,000  
million. This value exceeded book values  
by USD 113 million.  
Key figures and financial ratios  
The market value of the leased dry cargo  
portfolio increased in line with the signif-  
icant market increases experienced on  
asset prices and period rates during the  
year. Meanwhile, the value of the tanker  
portfolio was stable throughout 2021 de-  
spite difficult market conditions.  
2020  
2021  
Q2  
2021  
Total  
USD million  
Total  
Q1  
Q3  
Q4  
Contribution margin  
229.6  
-21.2  
29.0  
-19.7  
9.3  
48.9  
-2.4  
2.1  
54.3  
-3.2  
2.1  
-
51.3  
-2.4  
-5.8  
13.4  
7.6  
49.6  
-3.4  
-0.1  
2.6  
204.1  
-11.4  
-1.7  
6.8  
In addition, Asset Management has creat-  
ed a lot of value through active portfolio  
management and asset trading. During  
2020 and the early part of 2021, prior to  
the market upturn, the business unit had  
invested in cheap dry cargo vessels in  
anticipation of better markets. As the dry  
cargo market rates increased extraor-  
dinarily during the second half of 2021,  
the business unit captured this value by  
reducing its exposure through attractive  
cover contracts for coming years and by  
actively capturing portfolio value increases  
through vessel sales. This cover is expect-  
ed to significantly benefit 2022 earnings in  
Overhead and administration costs  
Adjusted Result  
Profit/(loss) from sale of vessels*  
Proft/loss for the period  
-9.2  
-7.1  
2.1  
2.5  
5.1  
* Figure includes Profit/(loss) from sale of vessels in joint venture, cf. note 2.1  
Optionality  
The upward trend in dry cargo asset prices  
and period rates during 2021 has provided  
significant upside value on Asset Man-  
agement's many extension and purchase  
options. These options are an important  
part of managing our portfolio, since they  
provide asset upside without the need to  
own vessels.  
Asset Management values  
USD million  
Dry Cargo  
Tankers  
Total  
Market value of owned vessels and newbuildings (charter free)  
Estimated market value of T/C and cover portfolio (incl. optionality)  
Total Asset Management portfolio value  
670  
280  
950  
330  
67  
1,000  
347  
397  
1,347  
Market value of owned vessels vs. carrying amounts  
158  
-45  
113  
—
—
—
25  
NORDEN  
ANNUAL REPORT 2021  
BUSINESS PERFORMANCE  
ASSET MANAGEMENT  
 
ASSET MANAGEMENT  
Asset Management transactions (2020-2021)  
Asset Management fleet  
Owned vessels  
Tankers  
Leased vessels  
Tankers  
Dry Cargo  
Total Dry Cargo  
Total  
Total  
10  
8
Active fleet  
6
Beginning of year  
Net change during year  
End of year  
16  
-3  
21  
-4  
37  
-7  
38  
5
15  
3
53  
8
90  
1
4
2
13  
17  
30  
43  
18  
61  
91  
0
-2  
-4  
-6  
-8  
For delivery  
Beginning of year  
Net change during year  
End of year  
7
-2  
5
0
2
7
0
6
2
8
-5  
3
14  
-3  
21  
-3  
2
7
8
11  
72  
18  
Q1-20  
Q2-20  
Q3-20  
Q4-20  
Q1-21  
Q2-21  
Q3-21  
Q4-21  
Total  
18  
19  
37  
51  
21  
109  
Dry Cargo - Added exposure  
Dry Cargo - Reduced exposure  
Purchase options  
Period option days  
51  
20  
71  
Product Tanker - Added exposure  
Product Tanker - Reduced exposure  
49,237  
16,517  
65,754  
Note: The outlined transactions above include purchases and sale of vessels, as well as long-term leases in and out, in total  
amounting to 45 transactions. Leases out are majoritively internal transfers to operator business units. The diagramme differs  
from the fleet list on the right, which accounts for delivery date on sales profits and transaction date on sales losses, while not  
including internal leases out across business units.  
Extension options - Average T/C rates per  
vessel type  
Purchase options - Average price per vessel  
type per year  
The price of a 5-year old Supramax in-  
creased by 69%, from USD 18 million to  
USD 30 million. The 1-year time charter  
rate for Supramax increased by 108%, from  
USD 11,600 to USD 24,125 per day.  
tion is expected to be slightly lower, it will  
remain supportive for rates.  
USD/day  
18,000  
16,500  
15,000  
13,500  
12,000  
10,500  
9,000  
USD million  
45  
40  
35  
30  
25  
20  
15  
Despite the strong dry cargo market in  
2021, ordering of newbuildings was low at  
around 4% of the global fleet. Global fleet  
growth for 2021 amounted to 3.5%. For  
both 2022 and 2023, global fleet growth of  
around 2-2.5% is expected.  
Dry cargo market outlook  
It is expected that asset prices and period  
rates will remain at strong levels during  
2022. After a weak start to the year, China’s  
imports are expected to accelerate, and  
growth in the rest of the world should  
remain strong. New sanctions targeted at  
Russia add uncertainty to coal and grain  
volumes and are expected to be slightly  
negative overall. While global port conges-  
2022  
2023  
2024  
Handysize  
2022  
2023  
MR  
2024  
Tanker asset and period market rates  
Global tanker markets continued to be  
very challenged in 2021 due to subdued  
demand following COVID-19. However, as-  
set prices and time charter rates remained  
fairly stable throughout most of 2021,  
Panamax  
Supramax  
2022  
2023  
2024  
2022  
18  
2023  
15  
2024  
13  
Average age at declaration  
(years)  
No. of options per year  
5.6  
26  
3.5  
14  
3.5  
13  
No. of options per year  
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—
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ANNUAL REPORT 2021 NORDEN  
26  
BUSINESS PERFORMANCE  
ASSET MANAGEMENT  
 
ASSET MANAGEMENT  
Dry Cargo demand growth in 2021  
supported by strong vessel newbuilding  
prices and high steel prices.  
cive for increased activity, when viewed in  
isolation. Disruptions of Russian oil exports  
due to the Ukraine conflict may add tempo-  
rarily to activity levels, as volumes need to  
be sourced from locations further away.  
However, the market is starting from low  
utilisation of the global fleet of crude and  
product tanker vessels, and therefore mar-  
ket rate recovery is expected to be slow  
and only begin to show noticeable signs of  
improvement in the second half of 2022.  
Furthermore, COVID-19 related lockdowns  
based on new virus variants continue to  
pose a threat to the overall tanker market.  
Annual growth rate in %  
5
The tanker market bottomed out during  
Q3, and forward rates started to increase  
at the very end of Q4, which was reflected  
in improved asset prices and period rates  
at the end of the year. 5-year old MR tanker  
vessels increased 11% during 2021, from  
USD 27.5 million to USD 30 million. Simi-  
larly, 1-year time charter rates for MR eco  
vessels increased 11%, from USD 14,000 to  
15,500 per day.  
4
3
2
1
0
Rest of world  
minor bulk  
China  
coal  
Rest of world  
iron ore  
China  
iron ore  
China  
minor bulk  
Rest of world  
coal  
Total  
Increase  
Decrease  
Total  
Tanker market outlook  
Source: TRACS  
Looking towards 2022, global oil inven-  
tories have been drawn down to levels  
that are likely to promote more activity on  
the crude oil market. At the end of 2021,  
inventory levels were nearing the lowest  
level in 10 years, with inventories decreas-  
ing by 13%, resulting in 52 days remaining  
of global crude oil inventories (see graph  
on next page). Increased crude oil activity  
would positively reduce the oversupply of  
vessels in the product tanker market. Fur-  
thermore, the underlying conditions within  
the clean product tanker market are condu-  
Net supply growth of the global tanker  
fleet remains low, supported by a large vol-  
ume of vessel scrapping. As shipyards are  
mostly occupied by container newbuilding  
orders, there is a limited amount of prod-  
uct tanker newbuildings, which provides  
a crucial support to both asset prices and  
time charter rates. The global fleet growth  
in the combined global crude and prod-  
uct tanker fleet amounted to 1.8%, and is  
expected to remain at around 2.0% in both  
2022 and 2023.  
Asset values - 5-year old vessels  
1-year T/C rate  
USD million  
USD '000 per day  
30  
35  
30  
25  
20  
15  
10  
5
25  
20  
15  
10  
5
0
0
Supramax  
MR  
Supramax  
MR Eco  
Source: VesselsValue  
Source: Clarksons  
—
—
—
27  
NORDEN  
ANNUAL REPORT 2021  
BUSINESS PERFORMANCE  
ASSET MANAGEMENT  
 
ASSET MANAGEMENT  
Oil volumes in transit (indexed)  
Index  
1.1  
1.0  
0.9  
0.8  
0.7  
Crude oil  
Clean petroleum products  
Global fleet growth, net  
Crude oil – Global forward demand cover  
% of global fleet  
Days  
60  
7.5  
6.0  
4.5  
3.0  
1.5  
0.0  
58  
56  
54  
52  
50  
Total tanker fleet  
Total dry cargo fleet  
Source: Clarksons  
Number of days in crude oil stocks based  
on forward demand  
—
—
—
ANNUAL REPORT 2021 NORDEN  
28  
BUSINESS PERFORMANCE  
ASSET MANAGEMENT  
 
DRY OPERATOR  
Highlights 2021  
Results  
230 1,931  
USD million profit  
USD per  
vessel day  
Activity  
92 Panamax vessels  
131 Supramax vessels  
103 Handysize vessels  
326  
Average no. of  
vessels operated  
118,845  
Total vessel days  
Main commodities  
15%  
3%  
Agricultural products  
29%  
Coal  
Cement products  
Fertilisers  
4%  
6%  
Alumina/Bauxite  
Iron ore  
9%  
Biomass energy  
Other  
25%  
9%  
Dry Operator provides global freight solutions and trading in the dry cargo market.  
Going forward, this activity is integrated into NORDEN’s Freight Services & Trading  
business unit.  
—
—
—
DRY OPERATOR 29  
NORDEN  
ANNUAL REPORT 2021  
BUSINESS PERFORMANCE  
 
DRY OPERATOR  
Leading into 2021, Dry Operator antici-  
pated a weak start to the year for the dry  
cargo market, but contrary to expectations,  
spot rates increased during Q1, and Dry  
Operator promptly readjusted its position  
by chartering in a record number of vessels  
in anticipation of further rate increases.  
The change of position created significant  
value, as dry cargo spot rates continued to  
increase. Towards the end of the year, the  
business unit utilised the strong rates to  
take on a large number of cargo contracts  
to reduce its exposure.  
position itself across regions, vessel types  
and time periods.  
In addition to this, a highly active container  
market caused positive spill-over effects  
on the dry cargo market, as commodities  
that would traditionally be transported by  
container vessels placed further demand  
on smaller dry cargo vessels, in particular  
Handysize. The high Chinese demand  
came to an end in Q4, as energy prices  
surged and China put a halt on its import  
activity. While this caused a short-term  
drop in market rates, rates rebounded at  
year-end.  
• Profit of USD 230 million  
• Capitalising on soaring market  
rates through significant  
tonnage position and strong  
customer focus  
The business unit continued to grow, espe-  
cially in the Handysize vessel segment as  
customers shifted cargo from containers  
to smaller dry cargo vessels due to better  
availability and reliability. Dry Operator  
also strengthened its market share and  
continued to benefit from an increasing  
number of customers (shipowners and  
cargo customers), who sought a financially  
stable and commercially reliable partner  
during very volatile and unpredictable  
markets.  
• Using market volatility through  
multiple trading strategies  
across regions and vessel types  
Results and activity 2021  
Dry Operator generated an outstanding  
result, with a profit for the year of USD 230  
million (USD 59 million). The activity level  
grew to a record average fleet size of 326  
vessels, which is an increase of 14% com-  
pared to 2020, and in contrast to a market  
demand growth of 0.7% in 2021. The aver-  
age result per vessel day increased to USD  
1,931 (USD 559).  
During the year, average spot rates  
increased significantly across the vessel  
types that NORDEN operates. Average  
Handysize spot rates increased by 221%  
(from USD 8,000 to USD 25,700 per day),  
Supramax rates increased by 227% (from  
USD 8,200 to USD 26,800 per day), and  
Panamax rates increased by 171% (from  
USD 9,900 to 26,900 per day).  
The quick portfolio adjustments through-  
out the year are key examples of how the  
asset-light business unit can adapt and  
benefit from market volatility by apply-  
ing multiple trading strategies across its  
sub-markets.  
Market development in 2021  
Dry cargo market rates soared to extreme-  
ly high levels in 2021, driven by strong  
Asia-driven demand in the first half of the  
year, combined with ongoing global mar-  
ket inefficiencies such as port congestion,  
weather disturbances and trade disputes.  
To the surprise of many operators, market  
rates increased in early 2021 with sus-  
tained disruptions on vessel availability,  
which effectively caught both ship owners  
and operators off guard, causing a market  
scramble to secure tonnage to meet the in-  
creasing demand for cargoes. As port con-  
gestion related to COVID-19 prolonged,  
this effectively reduced the amount of  
globally active vessels, driving market rates  
up considerably in a short span of time.  
Dry Operator uses its broad network and  
local presence to identify opportunities to  
Market outlook  
The dry cargo market is expected to  
remain strong in 2022. Globally, port  
congestion is not expected to evaporate  
in the short-term, as COVID-19 variations  
continue to pose a threat to supply chains.  
China is expected to have subdued activity  
in the first half of 2022. We expect the  
Chinese economy to be fiscally stimulated  
and demand for dry cargo to increase from  
March onwards.  
Key figures and financial ratios  
2020  
Total  
2021  
2021  
Total  
USD million  
Q1  
Q2  
Q3  
Q4  
Contribution margin  
137.6  
-52.7  
24.4  
-10.8  
-0.2  
70.1  
-15.3  
129.1  
-23.7  
214.8  
-37.9  
438.4  
-87.7  
Overhead and administration costs  
Profit/loss for the period  
Vessel days  
58.5  
33.7  
68.3  
127.7  
29,013  
4,402  
229.5  
104,662  
559  
28,966  
-7  
31,217  
1,080  
29,649  
2,304  
118,845  
1,931  
Result per vessel day (USD/day)  
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—
—
ANNUAL REPORT 2021 NORDEN  
30  
BUSINESS PERFORMANCE  
DRY OPERATOR  
 
DRY OPERATOR  
Dry Operator - Quarterly results  
Supramax spot rates  
USD thousand/day  
40  
USD million  
135  
120  
105  
90  
75  
60  
45  
30  
15  
0
30  
20  
10  
57.4  
14.6  
7.5  
2.0  
-15  
0
Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21  
2018  
2019  
2020  
2021  
Spot rates  
12-month moving average  
Quarterly result  
Average quarterly adjusted result - per year  
Source: Clarksons  
Dry Operator - Quarterly activity levels  
Dry Operator - Margin per vessel day  
Vessel days  
31,000  
29,000  
27,000  
25,000  
23,000  
21,000  
19,000  
17,000  
15,000  
USD/day  
29,711  
4,500  
4,000  
3,500  
3,000  
2,500  
2,000  
1,500  
1,000  
500  
26,166  
25,249  
24,031  
7.3% per year  
0
-500  
Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21  
Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21  
Vessel days  
Average number of vessel days  
Annual growth rate  
—
—
—
DRY OPERATOR 31  
NORDEN  
ANNUAL REPORT 2021  
BUSINESS PERFORMANCE  
 
TANKER OPERATOR  
Highlights 2021  
Results  
-30 -664  
USD million  
USD per vessel  
day  
Activity  
85 MR vessels  
124  
39 Handysize vessels  
Average no. of total  
vessels operated  
45,344  
Total vessels days  
Main commodities  
9%  
Diesel/Gasoil  
Gasoline  
6%  
Naphtha  
42%  
11%  
11%  
Fuel oil  
Jet fuel/Kerosene  
Other  
Tanker Operator provides global freight solutions and trading in the product tanker  
market. Going forward, this activity is integrated into NORDEN’s Freight Services &  
Trading business unit.  
21%  
—
—
—
ANNUAL REPORT 2021 NORDEN  
32  
BUSINESS PERFORMANCE  
TANKER OPERATOR  
 
TANKER OPERATOR  
In a market only slowly recovering from  
during 2021. The business unit has focused  
on creating an optimal vessel portfolio for  
2022, taking on time charter contracts,  
thereby adding length, including extension  
options, to be able to capitalise on future  
rate improvements. The market value of  
the optionality on the added tonnage indi-  
cates good potential when looking into the  
second half of 2022 and 2023, in line with  
expected market recovery. During 2021,  
Tanker Operator increased its exposure  
to transportation of soft oils (palm oils,  
vegetable oils) as a way of further diversify-  
ing its range of transported products and  
market exposure going forward.  
struggled during most of 2021. With limit-  
ed demand for crude oil, transport hereof  
stagnated, as markets relied on oil inven-  
tories built up during previous periods.  
This was further compounded by ongoing  
deliveries of new VLCC tankers, which  
moved into the product tanker market as  
part of their maiden voyages, combined  
with other larger coated tonnage moving  
into the product tanker segment. This ef-  
fectively created an oversupply of tonnage,  
ultimately lowering earnings potential.  
• Loss of USD 30 million  
• Very weak spot market  
low demand, Tanker Operator sought to  
mitigate the worst effects by redelivering  
expired vessels at the end of their con-  
tracts, renewing expired period vessels  
at lower daily rates and by entering into  
time-charter out contracts.  
• Positioned for market  
improvements with extensive  
optionality on hand  
In addition, the business unit optimised  
the daily operation of vessels and voyages  
and during the year benefitted from higher  
demurrage compensation, providing im-  
proved earnings on certain voyages. While  
this combined activity reduced the worst  
effects of operating with historically low  
market rates, the business unit could not  
avoid losses during the year.  
Results and activity 2021  
The full-year loss for Tanker Operator  
amounted to USD 30 million (profit of USD  
18 million) and is the result of 45,344 vessel  
days (44,668) handled by the business unit  
during the year. The business unit operat-  
ed with an average result per vessel day  
of USD -664 and an average combined  
fleet size of 124 vessels. Vessels chartered  
by Tanker Operator averaged 46, while  
78 vessels were in NORDEN’s third-party  
commercial pool management.  
During the year, underlying product tanker  
demand improved in line with the gradual  
reopening of countries and improvements  
in overall world trade. This meant that  
demand for major product tanker commo-  
dities like gasoline and diesel improved to  
pre-COVID-19 levels, while the demand for  
jet fuel did not recover to the same degree,  
as intercontinental flights were still less  
frequent. However, this recovery could not  
offset the indirect competition from crude  
carriers, which remained the predominant  
challenge for product tanker operators.  
In 2021, Tanker Operator generated an  
income of USD 13 million from commer-  
cial pool management, booked as Other  
Operating Income. Following the merger  
of Diamond S Shipping and International  
Seaways, the partnership was extended  
with ten additional vessels in addition to  
other customer vessels added to the pool  
during the year. In 2022, NORDEN expects  
to further professionalise the services pro-  
vided to tanker pool customers in line with  
the reorganisation into the Freight Services  
& Trading business unit.  
Tanker Operator has prepared for in-  
creased activity once markets recover,  
believing the market has bottomed out  
Key figures and financial ratios  
2020  
Total  
2021  
2021  
Total  
Average MR Atlantic spot rates decreased  
by 65% year on year from USD 19,300 to  
USD 6.800 per day. Average MR Pacific  
spot rates decreased by 51% year on year  
from USD 15.900 to USD 7.800 per day.  
USD million  
Q1  
Q2  
Q3  
Q4  
Contribution margin  
68.4  
-19.2  
18.2  
2.0  
-3.8  
4.9  
-5.4  
-2.4  
-3.9  
2.6  
-5.2  
7.1  
-18.3  
Overhead and administration costs  
Profit/loss for the period  
Vessel days  
Market development in 2021  
-7.6  
-4.0  
-10.9  
-7.6  
-30.1  
Following the outbreak of COVID-19 in  
2020 and the resulting lowering of oil de-  
mand and oil production, tanker markets  
44,668  
408  
10,833  
-702  
10,795  
-371  
11,595  
-940  
12,121  
-627  
45,344  
-664  
Result per vessel day (USD/day)  
—
—
—
33  
NORDEN  
ANNUAL REPORT 2021  
BUSINESS PERFORMANCE  
TANKER OPERATOR  
 
TANKER OPERATOR  
MR T/C spot rates  
Tanker Operator - Margin per vessel day  
Market outlook  
orderbook and gradual increases in crude  
Overall, the first half of 2022 is expect-  
ed to continue to be challenging, yet  
gradual improvements are expected in  
the second half of the year. Demand for  
tanker transport is expected to increase  
with more tonne-miles related to ongoing  
market disruptions in line with the need for  
restocking oil inventories combined with a  
gradual recovery of oil demand.  
oil supply will support more attractive  
market rates for VLCCs, thereby removing  
the negative spill-over effect on the prod-  
uct tanker market. However, the speed  
of recovery is dependent on the OPEC+  
countries' capacity and ability to meet in-  
creased production targets. Furthermore,  
the ongoing threat of COVID-19 variants  
and subsequent lockdowns will continue  
to be a threat to oil demand and supply as  
well as demand for tankers.  
USD thousand/day  
50  
USD/day  
2,500  
2,000  
1,500  
1,000  
500  
40  
30  
20  
10  
0
0
-500  
-1,000  
The indirect competition from VLCCs is  
still expected, but a combination of a low  
2017  
2018  
2019  
2020  
2021  
MR EAST CPP  
MR WEST CPP  
MR DPP  
Source: ACM Braemar  
Tanker Operator - Quarterly results  
Tanker Operator - Quarterly activity levels  
USD million  
40  
Vessel days  
13,000  
11,336  
30  
20  
10  
12,000  
11,000  
11,167  
10,000  
8,806  
4.4  
4.6  
0
-10  
-20  
9,000  
8,000  
7,000  
-7.5  
13.5% per year  
Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21  
Average number of vessel days  
Annual growth rate  
Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21  
Quarterly result Average quarterly adjusted result - per year  
Vessel days  
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—
—
ANNUAL REPORT 2021 NORDEN  
34  
BUSINESS PERFORMANCE  
TANKER OPERATOR  
 
—
—
35  
NORDEN  
ANNUAL REPORT 2021  
BUSINESS PERFORMANCE  
 
GOVERNANCE  
37 Corporate governance  
40 Board of Directors  
42 Senior Management  
43 Board Committees  
—
—
NORDEN  
36  
GOVERNANCE  
ANNUAL REPORT 2021  
 
CORPORATE GOVERNANCE  
The Board of Directors is made up of nine  
members. Six are elected for a term of  
Ensuring responsible, long-term  
governance of the Company  
Governance structure  
one year by the shareholders, while three  
aligned with shareholder interests  
members are elected for a term of three  
years by the employees. The Board of Di-  
NORDEN’s governance principles and  
structure are set out to ensure alignment with  
long-term shareholder interests to enable  
prudent management of the Company in  
accordance with relevant national and inter-  
national regulations, applicable corporate  
governance recommendations as well as to  
align with the risk framework specified by the  
Board of Directors.  
rectors determines and approves strategies,  
policies, overall goals and budgets for the  
Company. In addition, it sets out the risk  
management framework and supervises the  
work, procedures, etc. carried out by the  
day-to-day management. The Board of Di-  
rectors appoints the Executive Management  
and sets out its responsibilities and remu-  
neration. To avoid conflicts of interest, there  
are no transactions between related parties  
within the Board, and the Board does not  
operate with any form of incentive-based  
remuneration.  
Shareholders  
Board of Directors  
Furthermore, the ongoing management of  
NORDEN is based on the underlying Com-  
pany values of flexibility, reliability, empathy  
and ambition as well as the Company’s  
guiding purpose of enabling smarter global  
trade.  
Audit  
Committee  
Risk  
Remuneration  
Committee  
Nomination  
Committee  
Committee  
The Executive Management comprises the  
CEO and CFO, who are responsible for the  
day-to-day management, organisation and  
development of NORDEN, for managing  
assets, liabilities and equity, for account-  
ing and reporting, and for preparing and  
implementing the strategy. The day-to-day  
contact between the Board of Directors  
and the Executive Management is primarily  
handled by the Chairman and the CEO.  
The Executive Management participates in  
board meetings and is supplemented by  
other managers in strategic meetings as  
and when relevant.  
Executive Management  
Governance structure  
NORDEN has a two-tier governance struc-  
ture consisting of a Board of Directors and  
an Executive Management. No individuals  
are part of both management bodies. The  
shareholders have the ultimate authority  
over the Company and can exercise their  
rights by passing resolutions at general  
meetings. Resolutions are adopted by  
simple majority of votes, unless otherwise  
provided by legislation or by NORDEN’s  
articles of association.  
Organisation  
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CORPORATE GOVERNANCE 37  
NORDEN  
ANNUAL REPORT 2021  
GOVERNANCE  
 
The Articles of Association can be found on  
the Company’s website. Generally, resolu-  
tions to amend the Articles of Association  
require a quorum of at least two-thirds of  
the voting share capital represented at a  
general meeting and a majority of at least  
two-thirds of the votes cast, as well as of the  
voting share capital represented at the gen-  
eral meeting. In addition, certain resolutions  
on changes of the shareholders’ dividend or  
voting rights or the transferability of shares,  
as set out in the Danish Companies Act, re-  
quire a special supermajority of at least 9/10  
of the votes and of the capital represented.  
well as in the remuneration targets set forth  
for Executive Management by the Board.  
Directors possesses relevant skills and has  
good working relationships and dynamics. A  
similar assessment is planned for 2022.  
CORPORATE GOVERNANCE  
STATUTORY STATEMENT  
2021  
In 2021, the Board of Directors held 14  
board meetings. The attendance rate was  
98%.  
Board composition and remuneration  
At the annual general meeting in March  
2021, all shareholder-elected board mem-  
bers were re-elected as members of the  
Board of Directors.  
CVR NUMBER 67758919  
Board committees  
As part of the Board of Directors’ work and  
structure, four subcommittees have been  
established to ensure dedicated focus on  
recurring topics deemed of high importance  
for the governance of the Company. See  
overview of committees on page 43.  
Our Statutory Statement for  
Corporate Governance is available at:  
During 2021, three new employee repre-  
sentatives, Benedicte Hedengran Wegener,  
Christina Lerchedahl Christensen and Henrik  
Røjel, were elected as members of the Board  
of Directors for a period of three years. The  
three employee-elected representatives  
joined the Board of Directors at the annual  
general meeting in March 2021. At the same  
time, employee-elected board member  
Jesper Svenstrup resigned from the Board  
of Directors, in line with the ending of his em-  
ployment in NORDEN.  
norden.com/investor/governance/  
corporate-governance  
Board work  
Board qualifications and evaluation  
For the Board of Directors to be able to per-  
form its managerial and strategic tasks and at  
the same time act as a sounding board to the  
Executive Management, the following skills  
are deemed particularly relevant:  
The Board of Directors sets out an annual  
work schedule to ensure that all relevant  
issues are discussed during the year. As  
part of the annual schedule, regular board  
meetings and strategy seminars are held to  
ensure focus on both short and long-term  
targets for the Company. In line with this  
focus on short and long-term activities, the  
Board of Directors is engaged in uphold-  
ing the purpose of NORDEN: “As drivers  
of smarter global trade, we are conscious,  
soulful people uniting a world where every  
person and action matters“. This is, among  
other areas, reflected in the strategic discus-  
sions and priorities set between the Board  
of Directors and the Executive Manage-  
ment, in the regular updates provided by  
the Executive Management to the Board, as  
REMUNERATION REPORT  
2021  
•
•
•
•
•
•
•
Insight into shipping  
General management  
Strategic development  
Risk management  
Commodity trade  
Investment, finance and accounting  
International experience  
The Board of Directors had a target to have  
a minimum of two female shareholder-elect-  
ed board members out of six by 2020. The  
target was met, and the target is increased to  
a minimum 40% female shareholder-elected  
board members by 2025. Further details on  
the diversity levels in NORDEN can be found  
in the People chapter of the Sustainability  
section within this report, while NORDEN’s  
Diversity, Equity & Inclusion policy can be  
found at norden.com/investor/governance/  
policies-and-charters  
CVR NUMBER 67758919  
Our Remuneration Report 2021  
is available at:  
In 2021, the Board of Directors and the  
Executive Management conducted a self-as-  
sessment of the composition, qualifications  
and dynamics of the Board of Directors. The  
assessment concluded that the Board of  
norden.com/investor/  
governance/remuneration  
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ANNUAL REPORT 2021 NORDEN  
38  
GOVERNANCE  
GOVERNANCE  
 
Board remuneration remained unchanged  
at USD 0.8 million in 2021. Specific board  
remuneration can be found in the Remu-  
neration Report 2021 available for 10 years  
at norden.com/investor/governance/remu-  
neration. The Board of Directors proposes  
unchanged board fee remuneration in 2022.  
Planned Board activity for 2022  
The Board of Directors has planned 12 board  
meetings for 2022. The annual general meet-  
ing will be held on 24 March 2022.  
Executive Management remuneration  
The remuneration of the Executive Manage-  
ment follows the principles set out in the  
Company’s Remuneration policy, and the  
specific remuneration components granted  
for each of the two members of the Execu-  
tive Management are set out in the separate  
Remuneration Report 2021.  
Adherence to Danish corporate  
governance recommendations  
The Board of Directors has discussed the  
general recommendations for companies in  
Denmark as provided by the Danish Com-  
mittee on Corporate Governance and has  
reviewed its adherence to each recommenda-  
tion following a ‘comply or explain’ approach.  
NORDEN follows all recommendations, and  
a systematic review of NORDEN’s adherence  
to each of the Danish Corporate Govern-  
ance recommendations can be found in the  
Company’s Statutory Statement for Corporate  
Governance at norden.com/investor/govern-  
ance/corporate-governance (in accordance  
with section 107b of the Danish Financial  
Statements Act).  
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GOVERNANCE 39  
NORDEN  
ANNUAL REPORT 2021  
GOVERNANCE  
 
BOARD OF DIRECTORS  
Klaus Nyborg  
Johanne Riegels Østergård  
Vice Chairman  
Karsten Knudsen  
Board Member  
Thomas Intrator  
Board Member  
Position  
Chairman  
Occupation  
Managing Director  
Managing Director  
Managing Director  
Managing Director  
Other directorships  
A/S United Shipping & Trading Company  
(CB), Bawat A/S (CB), Moscord Pte. Ltd. (CB),  
Bunker Holding A/S (VCB), Uni-Tankers A/S  
(VCB), DFDS A/S (VCB), x-Press Feeders Ltd. ApS (BM) and Green Box A/S (VCB)  
(BM), Norchem A/S (BM), Maritime Investment  
Fund I and II K/S (Chairman of investment  
A/S Motortramp (BM), D/S Orients Fond  
(BM), Ejendomsselskabet Amaliegade 49  
A/S (BM), Lomax A/S (BM), Lion Danmark I  
Vækst-Invest Nordjylland A/S (CB), Polaris IV  
Invest Fonden (CB), Nordsøenheden (VCB),  
A/S Motortramp (BM), D/S Orients Fond (BM), Argus Media (BM) and Marquard & Bahls  
Obel-LFI Ejendomme A/S (BM), Velliv Pension (BM)  
& Livsforsikring A/S (BM), K/S Birkerød  
Macsteel Holdings Sarl, Luxembourg,  
Macsteel Global Sarl BV, Luxembourg (BM),  
Hovedgade 42 (BM), Saga I-VII GP ApS (MD),  
committee), Karen og Poul F. Hansens  
Saga VII-USD PD AIV K/S (MD), Saga VII-EUR  
Familiefond (BM) and Return ApS (MD)  
K/S (MD), Saga VII-USD K/S (MD), Saga VIII-  
EUR K/S (MD) and Saga VIII-USD K/S (MD)  
Relevant skills  
Experience with management of global,  
listed shipping companies, strategy,  
investment, sale and purchase, financial  
issues and risk management  
General management, financial and  
business insight as well as detailed  
knowledge of NORDEN’s values and history  
General management and strategy, broad  
financial experience, comprising accounting, world’s largest trading houses, international  
investment banking and management of  
financial risks, including credit risks  
Experience as an executive in one on the  
background and extensive knowledge of  
energy, shipping and metals. Experience  
within management, strategy, investment,  
customer relations and service, financial  
issues and risk management  
Board member since  
Term expires  
2012 (Chairman since 2015)  
2016 (Vice Chairman since 2017)  
2008  
2022  
100%  
2017  
2022  
100%  
2022  
2022  
Attendance 2021*  
100%  
100%  
Committees and attendance  
2021  
Audit Committee (100%), Remuneration  
Committee (100%), Nomination Committee  
(100%)  
Nomination Committee (100%)  
Audit Committee (100%), Risk Committee  
(100%), Remuneration Committee (100%)  
Risk Committee (100%), Remuneration  
Committee (100%), Nomination Committee  
(100%)  
Independent/Not  
independent  
Independent  
Not independent**  
Not independent**  
Independent  
Born in  
1963  
1971  
1953  
1959  
Male  
Swiss  
Gender  
Male  
Female  
Danish  
499**  
Male  
Nationality  
Danish  
1,700  
Danish  
2,000**  
No. of shares at year-end  
(annual change)  
5,100  
(increase of 1,500)  
All information as per 3 March 2022. Directorships do not include positions within the NORDEN Group. CB: Chairman of the Board. VCB: Vice Chairman of the Board. BM: Board Member. MD: Managing Director.  
* Calculated as percentage of required attendance ** In addition to the shares held personally by Johanne Riegels Østergård and Karsten Knudsen or through their related parties, both are associated with A/S Motortramp, which holds 12,379,237 shares in NORDEN.  
*** Employee-elected board members are not independent by virtue of their employment.  
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ANNUAL REPORT 2021 NORDEN  
40  
GOVERNANCE  
BOARD OF DIRECTORS  
 
Helle Østergaard Kristiansen  
Board member  
Stephen John Kunzer  
Board member  
Christina Lerchedahl Christensen Henrik Røjel  
Benedicte Hedengran Wegener  
Board Member  
Position  
Board Member  
Board Member  
Occupation  
CEO of Danske Commodities  
Former CEO in Eastern  
Pacific Shipping  
Business Application Specialist  
(NORDEN)  
Head of Fuel Efficiency and  
Decarbonisation (NORDEN)  
Head of Operations (NORDEN)  
Other directorships  
ARoS Aarhus Kunstmuseum,  
Stauning Whiskey A/S (BM) and  
Systematic A/S (BM)  
Braemar Shipping Services Plc. (BM) Elected by the employees  
Elected by the employees  
Elected by the employees  
Relevant skills  
Experience as CEO and CFO in an  
international energy trading house,  
extensive knowledge of energy, risk  
management, optimising processes  
and digitalisation. Competencies  
within digitalisation, international  
financing and risk management  
Experience within management of  
one of the world’s largest private  
family ship owners. Competencies  
within international shipping,  
especially within the tanker segment applications, processes and  
and experience in operating a large  
diverse fleet  
Experience within international  
shipping, especially within the  
tanker segment and operations.  
Competencies within business  
Competencies within sustainable  
energy. Extensive experience  
within working with fuel efficiency  
optimisation and decarbonisation  
Competencies within international  
shipping and management.  
Experience within and knowledge  
of ship management, vetting  
requirements and Marine HR as well  
as extensive operational know-how  
bridging business and IT  
Board member since  
Term expires  
2018  
2018  
2022  
100%  
2021  
2024  
2021  
2024  
2021  
2024  
2022  
Attendance 2021*  
100%  
Committees and attendance  
2021  
Audit Committee (100%)  
Risk Committee (100%),  
Remuneration Committee (100)%  
Independent/Not  
independent  
Independent  
Independent  
Not independent***  
Not independent***  
Not independent***  
Born in  
1978  
1966  
Male  
British  
0
1989  
Female  
Danish  
0
1987  
Male  
Danish  
0
1983  
Gender  
Female  
Danish  
800  
Female  
Danish  
1,761  
Nationality  
No. of shares at year-end  
(annual change)  
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BOARD OF DIRECTORS 41  
NORDEN  
ANNUAL REPORT 2021  
GOVERNANCE  
 
SENIOR MANAGEMENT  
Remuneration for the Executive  
Management can be found in the  
Remuneration Report 2021, available for  
10 years on NORDEN’s website.  
norden.com/investor/governance/  
remuneration  
Jan Rindbo  
CEO  
Martin Badsted  
Occupation  
Education  
CFO  
Trained in shipping and has completed  
executive training programmes at INSEAD  
Holds an M.Sc. in International Business  
Other directorships  
Danish Shipping (BM), D/S Orients Fond (BM)  
and BIMCO (BM)  
Employed in  
Born in  
2015  
1974  
2005  
1973  
No. of shares at year-end  
(annual change)  
84,594  
(increase of 46,757)  
10,911  
(increase of 6,688)  
Heidi Nykjær Persson  
Christian Vinther Christensen  
COO  
Henrik Lykkegaard Madsen  
Head of Asset Management  
Occupation  
Education  
Head of People, Communications and  
Sustainability  
Trained in shipping, holds a BA in Shipping  
and Transportation from Shanghai University  
and a MA in Consulting and Coaching  
Change from INSEAD  
Trained in shipping and has completed  
executive training programmes at  
Duke CE  
Trained in shipping, holds a graduate diploma  
in Marketing Economics and has completed  
executive training programmes at INSEAD  
and IMD  
Other directorships  
Employed in  
Born in  
2018  
1968  
2017  
1970  
2010  
1962  
Directorships do not include positions within the NORDEN Group.  
BM: Board Member  
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ANNUAL REPORT 2021 NORDEN  
42  
GOVERNANCE  
SENIOR MANAGEMENT  
 
BOARD COMMITTEES  
The four subcommittees have been established to ensure dedicated focus on recurring  
topics deemed of high importance for the governance of the Company.  
Audit Committee  
Throughout 2021, the Audit Committee  
consisted of:  
Risk Committee  
Throughout 2021, the Risk Committee  
consisted of:  
Remuneration Committee  
Throughout 2021, the Remuneration  
Committee consisted of:  
Nomination Committee  
Throughout 2021, the Nomination  
Committee consisted of:  
•
Karsten Knudsen (Committee  
Chairman)  
Klaus Nyborg  
•
Thomas Intrator (Committee  
Chairman)  
Karsten Knudsen  
•
•
•
•
Klaus Nyborg (Committee Chairman)  
Karsten Knudsen  
Thomas Intrator  
•
•
•
Klaus Nyborg (Committee Chairman)  
Johanne Riegels Østergård  
Thomas Intrator  
•
•
•
•
Helle Østergaard Kristiansen  
Stephen John Kunzer  
Stephen John Kunzer  
The committee supervises financial  
reporting, transactions with closely re-  
lated parties, auditing, etc. The terms of  
reference are published on NORDEN’s  
website, where a statement of control  
and risk management in connection with  
financial reporting can also be found  
(in accordance with section 107b of  
the Danish Financial Statements Act). In  
2021, the committee held four meetings  
with 100% attendance.  
The purpose of the committee is to as-  
sist the Board of Directors in its oversight  
of the Company’s overall risk-taking  
tolerance and management of market,  
credit and liquidity risks. The commit-  
tee’s terms of reference are available on  
NORDEN’s website. In 2021, the com-  
mittee held four meetings with 100%  
attendance.  
The committee is responsible for  
The committee is responsible for de-  
scribing the qualifications required in  
the Board of Directors and the Executive  
Management. The committee is also in  
charge of an annual assessment of the  
competences, knowledge and experience  
present in the two management bodies.  
The committee’s terms of reference are  
available on NORDEN’s website. In 2021,  
the committee held one meeting with  
100% attendance.  
supervising the implementation of the  
Company’s Remuneration policy, which  
specifies the remuneration of the Board  
of Directors and Executive Management.  
The Remuneration policy as well as the  
committee’s terms of reference are avail-  
able on NORDEN’s website. In 2021,  
the committee held two meetings with  
100% attendance.  
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BOARD COMMITTEES 43  
NORDEN  
ANNUAL REPORT 2021  
GOVERNANCE  
 
SUSTAINABILITY  
45 Sustainability in NORDEN  
47 Climate & Environment  
51 People  
56 Anti-corruption  
59 ESG performance  
60 ESG accounting policies  
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NORDEN  
44  
SUSTAINABILITy  
ANNUAL REPORT 2021  
 
SUSTAINABILITY IN NORDEN
Operating at the heart of global trade,
NORDEN'S SUSTAINABILITY FOCUS AREAS
NORDEN is committed to helping
customers decarbonise their supply
chains, setting high standards within
diversity, equality and inclusion and
taking a firm stance against all forms of
corruption.
Climate & Environment
People
Anti-corruption
Strategy and focus areas
Our sustainability strategy is incorporated into our
business strategy and supports NORDEN’s purpose
of enabling smarter global trade. The sustainability
strategy has three focus areas: Climate & Environ-
ment, People and Anti-corruption. The three areas
direct our efforts and overall aims within sustainabil-
ity and are used to map each of the United Nations
Sustainable Development Goals (SDGs) of particular
relevance to our business activities. Further informa-
tion on NORDEN's business model and units can be
found in the Business units section of this report.
Focus area
Decarbonisation and logistic solutions
Focus area
Diversity, wellbeing and engagement
Focus area
Bribery and facilitation payments
Helping our customers decarbonise their supply
chains. We provide customers with accurate
transparency on the carbon footprint of every
ocean freight transport, and we work with our
partners to co-create competitive greener shipping justice, impartiality and fairness. Furthermore,
solutions.
We embrace diversity and understand that
everyone plays an important part in the
company. We strive to continuously ensure
a diverse and inclusive culture promoting
Corruption impedes access to global
markets and constitutes barriers to economic
and social development around the world.
NORDEN has zero tolerance towards
bribery, and our policy is to refuse facilitation
payments.
the physical and mental wellbeing of
employees will be a dedicated focus area for
NORDEN in 2022.
Read more in the Climate & Environment chapter
on page 47
Read more in the People chapter
on page 51
Read more in the Anti-corruption chapter
on page 56
The focus areas and targets are defined by NOR-
DEN’s overall commitment to take a leading role in
driving sustainability agendas forward within ship-
ping. In the short-term, this is achieved by making
gradual improvements in our shipping solutions,
ensuring a more diverse and inclusive employee
culture as well as upholding strict anti-corruption
measures. In the long-term, we have set ambitious
climate commitments for where NORDEN wants to
be in 2030 and 2050. Likewise, our long-term diver-
sity target is to have a gender balance of minimum
40% female employees, managers and sharehold-
er-elected board members in 2025.
Targets
Provide our customers with accurate
Targets
Female share of employees: At least 40%
Targets
Zero tolerance towards bribery and
refusal of facilitation payments
transparency on carbon emissions
in 2022 (2021: 39%)
All eligible employees to take and pass
NORDEN’s anti-corruption training as
well as NORDEN’s sanctions and trading
restrictions training
Competitive greener shipping solutions for our
customers by 2022
Female share of managers: At least 36% in
2022 and at least 40% in 2025 (2021: 36%)
Relative carbon emissions from our operations
below the Sea Cargo Charter reduction trajectory members of Board of Directors: At least
Female share of shareholder-elected
40% in 2025 (2021: 33%)
Only order vessels with zero-emission
technology from 2030 at the latest
Net-zero emissions from our operation by 2050
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SUSTAINABILITY IN NORDEN 45  
NORDEN  
ANNUAL REPORT 2021  
SUSTAINABILITy  
 
Communication on progress
This report also represents our statutory
statement on social responsibility, under-
represented gender and diversity as well
as data ethics in accordance with sections
99a, b & d and 107d of the Danish Financial
Statements Act.
Furthermore, NORDEN seeks to engage in
dialogue with our stakeholders to identify
the most important issues within the three
overall sustainability areas. NORDEN’s
key stakeholder groups are our custom-
ers, suppliers, employees, shareholders,
financiers, industry associations, partner
organisations and regulators.
the One Sustainable NORDEN agenda as
part of working in NORDEN. The Commit-
tee acts as an informal idea platform for
discussing and collecting initiatives from
around the organisation, acts as a sound-
ing board for the Sustainability Executive
Body and actively advocates sustainability
initiatives. The scope of ideas is related to
sustainability mainly in the offices.
NORDEN has been a UN Global Compact
signatory since 2009, embracing a focus on
how to act responsibly as a business. NOR-
DEN reports annually to the UN Global
Compact, and this annual report functions
as our communication on progress for the
financial year 2021. NORDEN’s CEO, Jan
Rindbo, comments: "NORDEN continues
its long-standing support of the UN Global
Compact and has embedded practices
safeguarding the principles relating to
human rights, labour, environment and
anti-corruption into our operations".
Governance
NORDEN’s Sustainability Executive Body,
which is chaired by NORDEN’s CEO and
consists of members of Senior Manage-
ment, including heads of NORDEN’s
business units, is ultimately responsible for
NORDEN’s sustainability strategy, focus
areas, ambition level and policies.
Sustainability Committee
NORDEN’s management continuously en-
courages employee engagement towards
the sustainability agenda in NORDEN.
An example is NORDEN’s Sustainability
Committee, which consists of employees
who are motivated by making an impact on
Sustainability risks
The material sustainability risks inherent
in NORDEN’s value chain, pursuant to the
Danish Financial Statements Act §99a, are
outlined in the Risk management section of
this report.
EU Taxonomy  
The EU Taxonomy initially requires public  
interest entities to disclose to what extent  
their activities are covered by the Taxonomy  
and to subsequently report whether their  
activities can be considered sustainable  
under the provisions set out in the Taxono-  
my. NORDEN’s activities primarily comprise  
shipping activities and related services  
which are generally considered to be eligi-  
ble under the Taxonomy.  
not considered an eligible activity. Income  
earned from the administration of pool  
arrangements is not considered eligible  
under the Taxonomy. Such income is pre-  
sented as Other operating income and not  
as Revenue.  
Taxonomy except if capital expenditures are  
incurred directly relating to chartering out  
vessels.  
ment. Overhead and administrative costs  
as presented in the consolidated income  
statement comprising salaries to onshore  
employees, office expenses etc. are gener-  
ally not considered covered by the Taxono-  
my’s definition of Operating expenditures.  
Operating expenditures  
Operating expenditures as defined in  
the Taxonomy are considered to be ex-  
penditures directly related to chartering,  
maintaining and operating vessels and  
equivalent to Vessel operating costs as  
presented in the consolidated income state-  
Operating expenditures incurred are  
generally considered to be eligible under  
the Taxonomy except if relating to vessels  
chartered out.  
Capital expenditures  
Capital expenditures as defined in the  
Taxonomy are considered equivalent to the  
additions to Vessels and Prepayment on  
vessels and newbuildings as set out in note  
3.1 in the Consolidated Financial Statements  
and additions to Right-of-use assets as set  
out in note 4.7 in the Consolidated Financial  
Statements.  
Turnover  
Capital  
Operating  
Turnover as defined in the Taxonomy is  
generally considered to be equivalent to  
Revenue as defined by IFRS and recognised  
in the consolidated income statement. The  
activities generating revenue are generally  
considered to be eligible under the Taxon-  
omy except that chartering out vessels is  
Eligibility estimates for 2021 results  
Turnover expenditures expenditures  
Percentage of activities eligible under the Taxonomy’s provisions around:  
Shipping activities eligible under 6.10 - Sea and coastal freight  
water transport, vessels for port operations and auxiliary activities  
73%  
27%  
99%  
1%  
85%  
15%  
Capital expenditures incurred are gener-  
ally considered to be eligible under the  
Percentage of not-eligible activities  
Total  
100%  
100%  
100%  
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ANNUAL REPORT 2021 NORDEN  
46  
SUSTAINABILITy  
SUSTAINABILITY IN NORDEN  
 
CLIMATE & ENVIRONMENT
NORDEN’s climate strategy
the Danish maritime sector of achieving
carbon neutrality in 2050.
lio of vessel types changes continuously
in line with the Company’s agile business
model and customer demand, it can ren-
der the gradual developments in overall
EEOI score less informative.
dation for making informed choices about
decarbonising their supply chains.
outlines a clear ambition and firm
commitments for how NORDEN
will take a leading role in helping
our customers decarbonise their
supply chains.
During 2021, we refined our decarbon-
isation focus and outlined five climate
commitments (see page 45) that will form
the basis of our future efforts.
NORDEN is continuously seeking ways to
improve the operational efficiency of our
vessels in the short-term, while investigat-
ing new technologies and entering into
strategic partnerships for the long-term.
An integral part of NORDEN’s sustainabil-
ity strategy is enabling our customers to
decarbonise their supply chains, through
offering transparency over emissions of
voyages, greener competitive shipping
solutions, or by providing port logistics
services to our customers. During 2021,
NORDEN’s newly established Logistics &
Climate Solutions department announced
its first port logistics project. By providing
project-based port logistics and transship-
ment services, NORDEN will provide cus-
tomer services beyond the standard freight
services by enbaling larger vessel types to
transport heavier cargo loads to destina-
tions with limited port infrastructure. This
also helps customers decarbonise their
supply chains by transporting cargos more
efficiently on fewer voyages.
To ensure a more transparent and compar-
ative measurement across peers, NORDEN
intends to benchmark relative emissions
for our operated vessels against the trajec-
tory set forth by the Sea Cargo Charter.
The transition to greener shipping will
be among the biggest transformations in
NORDEN’s 150-year history. As an inte-
grated part of the global supply chain,
NORDEN is committed to helping our
customers decarbonise their activities and
contributing through industry-wide part-
nerships. NORDEN advocates ambitious
industry targets on emission levels and
increased regulatory standards through
sector-wide bodies, including Danish Ship-
ping, IMO, BIMCO, the Sea Cargo Charter
and the Getting to Zero Coalition. Further-
more, NORDEN is proud to be a corporate
partner of the Mærsk Mc-Kinney Møller
Center for Zero Carbon Shipping, which
works with stakeholders across the indus-
try as part of a joint mission to decarbonise
the maritime sector.
Performance in 2021
CO2 levels emitted from NORDEN's
operated vessels are measured as rela-
tive emissions per tonnes-miles, which is
used to calculate energy efficiency. This is
quantified as the amount of carbon output
relative to transporting one tonne of cargo
for one nautical mile. NORDEN reports on
this output by applying the Energy Efficien-
cy Operational Indicator (EEOI).
NORDEN's aim is to keep relative emis-
sions below the yearly limit outlined in the
Sea Cargo Charter trajectory. NORDEN's
relative emissions are currently in line with
the trajectory. Furthermore, NORDEN
aims to reach net-zero emissions from our
operations in 2050, which means that the
Company’s relative emissions are set to
reduce even sooner than the Sea Cargo
Charter trajectory outlines.
NORDEN’s overall relative CO2 emissions,
EEOI, were 8.6 grammes CO2/tonne-mile
in 2021. NORDEN’s performance was
negatively impacted by operating vessels
at higher speeds and operating relatively
more small Handysize vessels which are
less efficient. However, this was offset by
the inclusion of vessels on time-charter
out in the EEOI measurement, since in
NORDEN’s case, vessels on time-charter
out have higher efficiency than the average
fleet.
From an operational viewpoint, NORDEN
utilises average vessel performances to
predict future voyage emissions. Dur-
ing 2021, NORDEN made it possible for
customers to receive estimates on carbon
emissions for each individual voyage
ahead of time, and to receive an accurate
summary of the emissions after completion
of the particular voyage. This provides
customers with improved transparency on
their carbon footprint and a better foun-
NORDEN’s climate and environment goals
meet the United Nations International
Maritime Organisation’s (IMO) carbon re-
duction strategy and goals, and NORDEN
aims well beyond this by aligning with the
climate ambitions outlined by the Danish
government’s climate partnership with
NORDEN’s Fuel Efficiency & Decarbonisa-
tion team is directly involved in projects to
investigate and develop future fuels and
new zero-carbon technologies, using our
vessels as test laboratories. During 2021,
after years of rigorous testing on our ves-
sels, NORDEN has received the required
This shows how the EEOI score is easily
affected by changes in vessel types within
the entire portfolio. As NORDEN’s portfo-
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CLIMATE & ENVIRONMENT 47  
NORDEN  
ANNUAL REPORT 2021  
SUSTAINABILITy  
 
permit to use 100% biofuel, being among
the first-movers in the dry cargo sector. We
can now offer customers freight transport
using second-generation biofuel produced
from waste sources. This is the first of
many steps towards creating competitive
greener shipping solutions. NORDEN is
committed to incorporating several addi-
tional decarbonisation initiatives intended
to positively affect emission levels in 2022
and onwards.
future fuels and zero-carbon technologies.
For example, NORDEN will provide ‘sailing
laboratories’ – using our owned vessels to
carry out tests of new fuels or alternative
wind propulsion systems. Specialists from
NORDEN’s decarbonisation team, as well
as technical and commercial colleagues,
provide their expertise on various projects
as part of the partnership.
NORDEN and Spanish engineering com-
pany Bound4Blue completed a feasibility
study in 2021 with the objective of exam-
ining the possibility of installing wind sail
technology on one of NORDEN’s vessels
and hereby determine the fuel savings and
CO2 reductions created by the sails during
normal operation. NORDEN is exploring
opportunities of installing the technology
on a leased vessel.
Key partnerships in 2021
NORDEN collaborates with recognised
shipping and environmental partners in the
development of new alternative fuels and
propulsion methods as well as with recog-
nised forums to raise awareness, transpar-
ency and promote the need for ambitious
targets and transparent benchmarking.
In 2021, NORDEN signed a partnership
agreement with the Mærsk Mc-Kinney
Møller Center for Zero Carbon Shipping,
which is an independent, not-for-profit, re-
search and development centre launched
with support of the A.P. Møller Foundation.
The centre works across the shipping
industry, collaborating with companies,
academia and authorities, with an intention
to accelerate the transition to a greener
future for shipping. As a strategic partner,
NORDEN can contribute directly to the
work of the centre on projects related to
the development and implementation of
NORDEN is a member of the Getting to
Zero Coalition, which during 2021 formed
the Call to Action for Shipping Decarbon-
ization initiative, developed with mem-
bers from the entire maritime ecosystem.
NORDEN became a signatory to the Call
to Action initiative, as we believe that de-
carbonising shipping by 2050 is necessary
and achievable. The Call to Action initiative
was communicated to world governments
in November 2021, in advance of COP26.
As a supporter of the initiative, NORDEN
is committed to taking concrete action to
help ensure that zero-emission vessels and
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ANNUAL REPORT 2021 NORDEN  
48  
SUSTAINABILITy  
CLIMATE & ENVIRONMENT  
 
fuels become the default choice by 2030,
and with this collaboration we call on world
governments to enable an urgent and
equitable decarbonisation of the shipping
industry.
NORDEN participates in several partner-
ships with a view to reducing CO2 emissions
including:
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CLIMATE & ENVIRONMENT 49  
NORDEN  
ANNUAL REPORT 2021  
SUSTAINABILITy  
 
CLIMATE & ENVIRONMENT
PERFORMANCE SUMMARY
Climate
Environment
NORDEN’s ambition
•
•
•
•
•
Provide our customers with transparent reporting of emissions
•
•
0 oil spills into water
Provide our customers with greener shipping solutions
Ensure continuous sulphur emission compli-
ance
Reduce relative CO2 emissions from our operations in line with the Sea Cargo Charter reduction trajectory
Only order vessels with zero-emission technology from 2030 at the latest
Net-zero emissions from our operations by 2050
Performance 2021
Energy efficiency:
EEOI: 8.6 g CO2 / tonne-mile
Initiatives
Oil spills
•
Oil spills (> 1 barrel): 0
•
Emissions
•
SOx: 15 thousand tonnes, in line with 2020
•
•
Transparent voyage emissions reports for all customers
•
NOx: 130 thousand tonnes, a decrease of 3%
from 2020
Received required permit to use biofuel and now able to offer freight solutions using second-generation biofuel
produced from waste sources
Certifications
•
•
•
First port logistics project initiated, helping customers decarbonise supply chains
CDP certification renewed
Feasibility study completed with Bound4Blue on the possibilities of installing wind sail technology on one of
NORDEN's vessels
•
EcoVadis certification renewed
Looking ahead
•
•
Further investigate fuel efficiency and low-carbon shipping options, as well as logistical optimisation of ports and
decarbonisation of supply chains for selected customers
Develop and implement greener shipping solutions for customers, ranging from using advanced analytics for
increased vessel efficiency to carbon-neutral biofuel sailings
Relevant policies
•
NORDEN has not formalised the Company's principles into a Climate & Environment policy, as the Company is
focused on continuously evolving our climate strategy with updated short and long-term targets, initiatives and
commitments. The Company has currently prioritised a more developmental and action-oriented approach,
emphasising concrete targets, taking a range of new actions, developing new initiatives, forming new long-term
commitments, testing new fuel types and entering into new industry partnerships. In addition, NORDEN complies
with industry policies and charters as outlined below:
•
Responsible Ship Recycling policy. NOR-
DEN’s business model involves operating a
modern portfolio of vessels, selling and rede-
livering vessels long before end-of-life. Even
though we rarely recycle ships, NORDEN has
standards in place to conduct this in a legal,
ethical and socially responsible manner
•
•
•
•
Supplier Code of Conduct: The provisions set forth in this code, part of NORDEN’s General terms and conditions,
provide the minimum expectations to suppliers in regard to climate and environment.
The Sea Cargo Charter Clause. The clause requires a duly completed fuel emission report after completion of a
voyage and must be included in all charter parties entered by NORDEN
The Climate policy for Danish Shipping of November 2019. The policy describes expectations for the shipping
industry, including a zero-carbon industry by 2050 and the first carbon-neutral vessels by 2030
IMO’s Greenhouse Gas Reduction Strategy
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ANNUAL REPORT 2021 NORDEN  
50  
SUSTAINABILITy  
CLIMATE & ENVIRONMENT PERFORMANCE SUMMARY  
 
PEOPLE
The people at NORDEN are
our most important resource.
NORDEN strives to further
strengthen our position as an
attractive employer that offers
an inclusive, engaging, healthy
and safe working environment in
which all employees have equal
opportunities to realise their
potential.
In line with the COVID-19 pandemic, em-
of experience and education, we aim to
ployees have adapted to working in new and bring all employees’ unique contributions
more flexible ways, which NORDEN seeks to into our operational foundation. In 2021,
promote, while enabling a strong culture and we added questions in the regular engage-
working relationships across the organisa-
tion. A trial was initiated to assess opportu-
Female share of employees
in 2021
ment surveys on how inclusive the culture in
NORDEN is perceived, and the responses
nities and constraints in new flexible working are split into gender groups to address any
arrangements, and based on these learnings, imbalances in our culture, processes and
39%
new guidelines will be introduced in 2022
and will be continuously evaluated. Despite
the difficult circumstances related to COV-
ID-19 restrictions across offices, NORDEN’s
bi-annual engagement surveys confirm the
communication.
NORDEN has developed a new Diversity,
Equity & Inclusion policy, which supports
the aforementioned principles and helps
by continuing the employer-paid pension
during unpaid parental leave. Saving up for
paid vacation will likewise not be affected
during unpaid parental leave. To ensure
formal mechanisms that help parents re-
integrate after leave, it will be possible for
employees to apply for an internal parental
mentor and take part in a cross-industry
parental leave café.
Employee wellbeing
ongoing high engagement and wellbeing of ensure that NORDEN will continue to be a
our employees.
NORDEN is intent on providing a working
environment that accommodates well-
being, collaboration and performance.
During 2021, employees across NORDEN
have taken part in a wellbeing campaign
designed to enable life-changing healthy
habits. The 'Moving Beyond 150' cam-
paign was launched in connection with
NORDEN’s 150th anniversary as a way of
celebrating employees and focusing on
living a long and healthy life. The campaign
was focused on enabling small but impact-
ful lifestyle changes in physical and mental
health while supporting a healthy work-life
balance, with experts on nutrition, sleep
and fitness on hand throughout the jour-
ney. A combined reduction of body age by
721 years was achieved. The campaign also
gave a much-needed boost to employees
whose working lives were impacted by
local COVID-19 restrictions.
sustainable, trusted and inclusive organi-
sation. NORDEN encourages more women
to join the shipping industry, and therefore
During 2022, we will increase our focus on
employee wellbeing, introducing new health the business units and support functions in
and wellbeing initiatives and prioritising
physical and mental health as a natural part
of working in NORDEN. These initiatives
aim to build resilience, ensure wellbeing as
well as enable all employees to operate as a
globally connected team.
NORDEN have received targets in relation
to levelling the current gender ratio, and
managers have diversity related targets as
part of their performance evaluation.
Diversity in management
Diversity is an equally important factor in
terms of managerial positions in NORDEN.
Managerial levels range from the Board
of Directors to Senior Management to
managers of managers. The members of
NORDEN’s Board of Directors cover a wide
range of competencies and experiences
within international shipping, finance,
investment, strategy, digitalisation and
risk management, from both Danish and
international business. This combination is
considered desirable as it ensures a broad
approach to tasks and contributes to en-
Parental leave
In NORDEN, we strive to create an en-
couraging culture that embraces and
normalises paternity leave. We strive to
not discriminate on the basis of gender
or family configurations, and therefore
employees who become fathers or co-par-
ents/guardians across all locations will
receive 12 weeks of paid paternity/parental
Diversity, Equity and Inclusion
NORDEN believes diversity to be a strength
and therefore works actively to ensure di-
versity, equity and inclusion. In recent years,
we have improved our overall diversity by
bringing in employees with backgrounds
other than the traditional shipping profile,
opening up for different viewpoints and ways leave regardless of seniority in NORDEN.
of thinking. By creating an organisation with a NORDEN also actively contributes to
diversity of gender, nationalities, ages, levels
closing the gender gap in pension savings
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PEOPLE 51  
NORDEN  
ANNUAL REPORT 2021  
SUSTAINABILITy  
 
suring qualified governance of NORDEN’s
strategic direction.
among other initiatives during 2021 intro-
duced an Unconscious Bias Training in the
US, as well as anti-harassment surveys and
training sessions to help increase aware-
ness.
Talent attraction and education
It is important for NORDEN to ensure the
company has the right employee compe-
tencies to support our long-term strategy.
As part of this, NORDEN focuses on incor-
porating entry-level positions for shipping
graduates and analytical graduates, while
recruiting new talents with backgrounds
other than shipping. The demand for
support from in-house functions such as
Advanced Analytics & Digital Solutions,
Risk Management and Market Research
underlines the need for having a broad
range of employee competencies present
throughout the organisation.
Striving to close the financial gender gap,
NORDEN has teamed up with Female
Invest – a financial educator founded by
women and targeting women, who are
traditionally underrepresented within
investment communities. All NORDEN
employees were invited to participate in an
introduction to investing and was offered
a membership to help get started on their
investment journey. Conversely, NORDEN
has provided introductory webinars for
Female Invest, with the purpose of edu-
cating women on investing in the shipping
industry. Furthermore, we maintain a
strong focus on our strategic partnerships
with relevant universities globally – mainly
Singapore Management University and
Copenhagen Business School.
Likewise, gender balance on a managerial
level is desirable and pursued on an ongo-
ing basis in NORDEN, as part of ensuring a
diverse range of management skill sets and
composition and promoting equal oppor-
tunity in NORDEN’s organisation.
In the Board of Directors, shareholder-
elected women represented 33% (two
out of six) of the board members in 2021,
reaching NORDEN’s own target and the
target set out by the Danish Business Au-
thority. NORDEN’s aims to have a minimum
of 40% shareholder-elected female board
members in 2025. The share of women
in managerial positions in NORDEN was
36% in 2021, up from 31% in 2020. NOR-
DEN aims to increase this share to 40% by
2025. During 2021, NORDEN has increased
awareness of including female candidates
as part of the recruiting process for man-
agerial roles. In addition, our process for
assessing internal career opportunities has
received increased focus on creating equal
opportunities for both men and women.
NORDEN’s recruitment process enables
managers to focus on promoting equality
and broadening opportunities for new and
existing talents. This includes looking for
managerial candidates with backgrounds
other than shipping, and in addition actively
mitigating any potential biases that might
influence the decision-making process
when hiring. This is to ensure that NORDEN
always hires on the basis of qualifications,
potential to develop and ability to deliver.
Furthermore, NORDEN supports the edu-
cation of future shipping profiles through
a broad range of scholarships, internships,
advisory board participation as well as
Workforce demographics on shore  
Retention and turnover on shore  
NORDEN also strives to cultivate an inclu-
sive mindset among managers and has
Workforce, age, %  
40  
Turnover, %  
50  
Retention, %  
100  
40  
30  
20  
10  
0
96  
92  
88  
84  
80  
30  
20  
10  
0
Gender diversity
2021
2020
2019
Female share of total workforce (%)
Female share of Board of Directors (%)
Female share of Senior Management (%)
Female share of Managers of Managers (%)
Female share of Managers (%)
39
33
21
24
36
36
33
29
26
27
33
33
29
15
25
2019  
2021  
2020  
Male  
Female  
Turnover  
Retention  
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ANNUAL REPORT 2021 NORDEN  
52  
SUSTAINABILITy  
PEOPLE  
 
guest lectures to ensure industry relevant
alignment to the academic field.
2021 was the first year of operating without
in-house technical management, which was
transferred to the joint venture NORDEN
Synergy Ship Management in Q3 2020. While
the technical management of owned vessels
is outsourced, we still set the same high
standards for safety on board and ensure that
external managers meet these standards.
We continuously strive to identify any adverse
COVID-19 developments among crew on
board NORDEN’s vessels and ensure that
appropriate actions are taken to prevent and
mitigate these.
Conducting business in a legal, ethical and
socially responsible manner is integral to
NORDEN and in alignment with our com-
pany values. We are committed to ensuring
that no form of slavery or human trafficking
occurs in any part of our business or supply
chain. In 2021, NORDEN adopted the Mod-
ern Slavery Act for respecting human and
labour rights as operationalised by the UN
Guiding Principles on Business and Human
Rights. In addition, all employees are sub-
ject to NORDEN’s Employee Code of Con-
duct, which outlines the conduct expected
in the company, covering anti-corruption,
environment, safety, social conditions and
compliance matters.
Retention and turnover
Continued growth in activity and required
skill sets demands a focus on attracting,
retaining and developing skilled employ-
ees. In 2021, the retention rate for employ-
ees in NORDEN’s offices was 89%, which is
considered satisfactory, secures continuity
and preserves knowledge and skills in the
organisation. The focus on talent retention
is also reflected in ongoing engagement
surveys, which assess whether employ-
ees feel empowered, have access to the
information needed and understand
their contribution to the overall goals of
NORDEN. In 2021, NORDEN conducted
two employee engagement surveys, which
showed that the level of engagement and
motivation is very high among employees.
As expected, employee turnover was lower
during 2021 compared to 2020 where sev-
eral organisational restructures took place.
Crew changes related to COVID-19 lock-
downs in ports continued to be a challenge
during 2021. As a result, seafarers on board
NORDEN vessels experienced long peri-
ods at sea and difficult working conditions.
Furthermore, employees in several of
NORDEN's global offices have experienced
prolonged local lockdown measures, and
travel between offices has not been as
frequent. We would like to thank all seafarers
on board NORDEN's vessels, as well as our
onshore employee, acknowledging their
extraordinary efforts and patience in this
unprecedented situation.
Operating at sea involves safety and security
risks that must always be managed carefully
to safeguard the vessels, cargo and crew at
sea. NORDEN operates by the principle that
no injury or environmental incident is accept-
able. In 2021, there was a slight increase in
the number of injuries where crew members
were unable to work the next day (primarily
related to fingers, knees and back injuries).
During 2021, NORDEN continued to focus
on how to mitigate sexism and harassment
in the workplace. NORDEN does not toler-
ate any cases of harassment and finds it vital
that employees regard NORDEN as a safe
and inclusive workplace. To support this,
NORDEN conducted a follow-up survey on
harassment, measuring potential harass-
ment incidents in the workplace and during
external company related events (customer
meetings, dinners, courses, etc). The survey
outlined a need for NORDEN to provide
clearer guidance and procedures for report-
ing harassment, thereby ensuring that all
employees know who to reach out to and
how to follow up on any case of experienced
harassment.
Fatalities at sea related to work safety
amounted to 0 in 2021. However, with
ongoing COVID-19 outbreaks presenting
themselves across the various regions in
which NORDEN operates vessels, this led
to a captain on board a NORDEN vessel be-
coming infected with COVID-19 during mid-
2021, which ended with a fatal outcome.
NORDEN together with NORDEN Synergy
Ship Management provided support to the
family throughout this very unfortunate pe-
riod, staying in constant dialogue with local
legal and insurance representatives to help
the family, while ensuring that all logistical
and practical circumstances were handled
in accordance with the family's wishes.
Human rights
Assessing human rights violations is an
important and complex task for a globally
operating company like NORDEN, which is
part of a global supply chain, operating with
hundreds of customers, suppliers and part-
ners in different regions. Implementing the
necessary policies, due diligence processes
and grievance mechanisms, in line with the
requirements set by the UN Guiding Prin-
ciples for Business and Human Rights, is a
continuous process in NORDEN. In 2021,
we updated our Human Rights policy.
Health and safety
NORDEN is committed to fostering the best
possible working environment, where health
and safety are our top priorities. Creating
such a workplace necessitates a level of re-
sponsibility among employees to safeguard
their own and their colleagues’ safety, as well
as follow our Health & Safety policy and for
NORDEN to implement preventive actions
where necessary.
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ANNUAL REPORT 2021  
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PEOPLE
PERFORMANCE SUMMARY
People  
NORDEN’s ambition
•
•
Be a truly value-driven company, which challenges, develops and empowers our employees
Become the preferred choice to work in our industry throughout our employees’ different career lifecycles and remaine an attractive,
relevant and responsible employer to all current and future employees
•
•
•
•
•
•
•
Attract people with new and broad-based skill sets as well as different backgrounds
Achieve an industry-best engagement level with a focus on trust, development and ambition in every team across our global offices
Become a truly diverse company, where equal opportunity is a given, and different intelligences are embraced
Ensure that NORDEN’s ambition is visible and clear to all of our stakeholders
Female share of employees: At least 40% in 2022
Female share of managers: At least 36% in 2022 and at least 40% in 2025
Female share of shareholder-elected members of Board of Directors: At least 40% in 2025
Performance 2021
Diversity
•
•
•
•
40 nationalities
36% female share in managerial positions, 21% female share in Senior Management, 33% female share in the Board of Directors
All business units have received targets to close the current gender ratio gap
Implemented a Diversity, Equality & Inclusion policy to ensure that NORDEN continues to be a sustainable, trusted and inclusive organisa-
tion
•
Implemented improved conditions for maternity and paternity leave
Engagement and turnover
•
•
•
Two engagement surveys conducted in 2021 with high scores in engagement, motivation and inclusion
15% turnover (voluntary and involuntary leavers)
89% retention (voluntary leavers)
Education
•
Onboarded three interns as part of their education at Copenhagen Business School, four Commercial shipping graduates and three Port
captain trainees
Looking ahead
•
•
Continue the efforts to build a diverse and inclusive culture with equal opportunities
Revitalise our global development programme "Soulship", which targets all employee and managerial groups by giving access to training
and furthering skills within remote leadership, energy management, inclusion, change management, coaching and sustainable leadership
•
•
Focus on the health and wellbeing of our employees through our Sustainable Employee initiative
Offer selected students in lower secondary school with limited resources an opportunity to receive a week's work experience at NORDEN
Relevant policies
•
Employee code of conduct: The code describes the ethical, social and environmental behaviour, which every employee, regardless of
position, should adhere to when working at NORDEN
•
Diversity, Equity & Inclusion policy: NORDEN commits to continuously ensuring a diverse and inclusive culture, promoting justice, impar-
tiality and fairness by specifying our ambition, approach and commitments. The policy sets forth commitments and initiatives in order to
foster an inclusive work environment, where diversity is promoted, and all people are treated in a fair and equal manner
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54  
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PEOPLE PERFORMANCE SUMMARY  
 
PEOPLE
PERFORMANCE SUMMARY - CONTINUED
Health and safety
Human rights
NORDEN’s ambition
Performance 2021
•
•
Zero fatalities
•
Ensure that NORDEN conducts business with respect for human rights
Lost Time Injury Frequency below 0.8
•
Lost Time Injury Frequency rate increased from 0.6 per million work-
ing hours in 2020 to 0.8 in 2021
•
•
Completion of a harassment survey in 2021, measuring workplace wellbeing as a follow-up on a previous
survey in October 2020
•
•
The number of fatalities at sea related to work safety was 0
Focus on anti-harassment measures in the organisation
Looking ahead
Continued high focus on safety and close monitoring of Lost Time
Injury Frequency rate with external vessel managers
•
•
Develop a new human rights impact and risk assessment of NORDEN in line with our Human Rights policy
Continue to promote a safe working environment for everybody without any kind of harassment
Relevant policies
•
Health & Safety policy: NORDEN is committed to fostering the best
possible working environment where health and safety are top prior-
ities
•
•
•
Human Rights policy: NORDEN’s framework for human rights is operationalised by the UN Guiding Prin-
ciples on Business and Human Rights. NORDEN expects all business relationships linked to NORDEN to
respect the human rights
Employee code of conduct: The code describes the ethical, social and environmental behaviour, which
every employee, regardless of position, should adhere to when working at NORDEN. It is in accordance
with NORDEN’s values of ambition, empathy, flexibility and reliability
Supplier code of conduct: The provisions set forth in this code, part of NORDEN’s General terms and con-
ditions, provide the minimum expectations to suppliers. These minimum expectations are based on the
general principles contained in the UN Global Compact and other relevant international principles and are
in line with NORDEN’s values and principles on ethical and responsible business conduct
•
Modern Slavery act. Conducting business in a legal, ethical and socially responsible manner is core to
NORDEN and in line with our values. We are committed to ensuring that no form of slavery or human traf-
ficking occurs in any part of our business or supply chain. NORDEN’s framework for respecting human and
labour rights is operationalised by the UN Guiding Principles on Business and Human Rights (UNGP)
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PEOPLE PERFORMANCE SUMMARY - CONTINUED 55  
NORDEN  
ANNUAL REPORT 2021  
SUSTAINABILITy  
 
ANTI-CORRUPTION
Corruption impedes access to
ments to facilitate a favourable outcome.
board NORDEN’s owned vessels to ensure
alignment with NORDEN’s Anti-corruption
policy. In 2021, additional training and
test courses were launched focusing on
how individual employees should act with
respect to sanctions compliance and will
be followed up by more comprehensive
sanctions compliance training during 2022.
tions & Sustainability. In 2021, no substanti-
ated whistleblower reports were received.
global markets and constitutes
barriers for economic and social
development. NORDEN therefore
takes firm measures to prevent
any form of corruption as part of
our ambition to enable smarter
global trade.
Extortion is when officials, by using threats,
refuse to perform their duties or abuse their
position of authority, resulting in improper
fines and delays on vessels. NORDEN con-
siders extortion a threat to the security on
board our vessels and will have a continued
focus on this. There has been a decrease
in incidents over the past year, likely as a
result of COVID-19, where new procedures
in ports have prevented authorities from
going on board vessels.
Tax
As a company with global reach, NORDEN
operates in multiple jurisdictions with
different tax rules and regulations. NOR-
DEN complies with current tax legislation
of the countries in which we operate, and
we comply with all applicable transpar-
ency rules including country by country
reporting. In 2021, the Board of Directors
updated and approved NORDEN's tax poli-
cy, available on the Company's website.
NORDEN may make legitimate use of tax
incentives and exemptions, but we do not
use so-called tax havens according to the
European Union tax haven blacklist.
As a general rule, NORDEN’s external man-
agers are members of the Maritime Anti-
Corruption Network (MACN), which aims
for a maritime industry free of corruption.
For businesses in the maritime industry, cor-
ruption escalates costs, endangers the safe-
ty and wellbeing of crew, while posing legal
and reputational risks. In 2021, NORDEN
had 10,304 port calls across 132 countries,
and in some of these regions the concepts
of integrity and good business conduct can
vary. Therefore, NORDEN has taken several
initiatives to counteract corruption, aiming
for a shipping industry free of corruption,
while providing a safe working environment
on board NORDEN’s vessels.
To reduce risk while ensuring compliance
with legal requirements and stakeholder
expectations, all NORDEN’s counterparties
and vessels are screened daily for sanctions.
Due diligence, monitoring, controls and
training are key tools in implementing the
Anti-corruption policy as well as frequent
reporting from external managers on de-
mands placed by e.g. local authorities.
Whistleblower scheme
NORDEN is committed to providing an envi-
ronment where the high NORDEN stand-
ards and best practices are encouraged and
safeguarded. Since 2011, NORDEN has had
an independent whistleblower scheme ac-
cessible to NORDEN’s employees, including
the Executive Management and Board of Di-
rectors, crew members on board NORDEN
owned or operated vessels, technical man-
agers, auditors, lawyers, external consult-
ants, suppliers, customers and other busi-
ness partners and stakeholders. Employees
in NORDEN have access to raise workplace
and operational concerns directly with their
manager or with the HR department, or they
can use NORDEN’s whistleblower scheme
to report anonymously. The whistleblower
reports are directed to the Chairman and
Vice Chairman of the Board of Directors as
well as the Head of People, Communica-
Data ethics
NORDEN’s business model increasingly re-
lies on advanced analytics capabilities and
use of digital solutions using vast amounts
of data. Our commitment to handle data in
an ethical manner is described in our Data
Ethics policy, which outlines six principles
for data ethics, describing how we collect,
store, process and protect data for the
benefit of our employees, customers, busi-
ness partners and other stakeholders.
To create a culture of exemplary conduct
with strong procedures, NORDEN has an
anti-corruption compliance programme in
place, including an Anti-corruption policy as
well as a Gift & Entertainment policy appli-
cable to all employees.
Employee anti-corruption
and ethics training
NORDEN has launched a new anti-corrup-
tion training platform for employees, which
covers topics such as anti-corruption prac-
tices, bribery and facilitation payments,
gift and entertainment, conflict of interests,
commissions, fraud, third-party procedures
and NORDEN’s whistleblower scheme.
Furthermore, NORDEN has zero tolerance
towards bribery and our Anti-corruption
policy outlines a clear refusal of facilitation
payments. Facilitation payments typically
take place in the form of small cash pay-
Our external technical managers carry out
anti-corruption training for seafarers on
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ANNUAL REPORT 2021 NORDEN  
56  
SUSTAINABILITy  
ANTI-CORRUPTION  
 
ANTI-CORRUPTION
PERFORMANCE SUMMARY
NORDEN participates in several  
partnerships with a view to prevent  
corruption and bribery while encour-  
aging transparency and responsible  
supply chain management  
Anti-corruption
NORDEN’s ambition
Performance 2021
•
•
Zero tolerance towards bribery and say no to facilitation payments
Screening of all counterparties and vessels for sanctions
•
•
0 substantiated whistleblower reports received
All eligible employees have taken and passed anti-corruption training. Anti-corruption training
for all eligible employees will be conducted annually
•
Updated the Gift & Entertainment policy to ensure that no offering or acceptance of gifts or busi-
ness entertainment can be confused with bribery. Transparency is mandatory, and all received
gifts must either be returned or handed over to NORDEN. The Company will then decide how to
handle the gift depending on its nature
•
•
•
All eligible employees have taken and passed the sanctions and trading restrictions training.
Sanctions compliance training for all eligible employees will be conducted annually
Implemented updated anti-corruption compliance programme and sanctions compliance pro-
gramme
Developed a Data Ethics policy, outlining how NORDEN handles data and our commitment to
protecting data related to employees, customers, business partners and other stakeholders.
•
•
Tax policy updated
TRACE certification renewed (TRACE is an anti-bribery standard setting organization. Certifi-
cation by TRACE signifies that an entity has completed internationally accepted due diligence
procedures and complied with review process)
Looking ahead
•
•
Continued work with the Maritime Anti-Corruption Network
Continued integration of anti-corruption compliance into operations, decision-making and
business relationships
•
•
Continue to embed supplier risk assessment and management into our sourcing activities
Relevant policies
Anti-corruption policy: The policy aims to ensure compliance with key anti-corruption legislation,
protect NORDEN’s reputation and guide employees in what is expected when working for NOR-
DEN. The programme applies to all employees, Management and the Board of Directors
•
Data Ethics policy: The policy states our data ethics principles, describing how we collect, store,
process and protect data for the benefit of our employees, customers, business partners and
other stakeholders
•
•
Employee code of conduct: The code describes the ethical, social and environmental behaviour,
which every employee, regardless of position, should adhere to when working at NORDEN
Supplier code of conduct: Building a sustainable practice by establishing systems and processes
to manage our adverse impacts on human and labour rights, environment and anti-corruption
through our purchasing practices
•
Sanctions policy: The policy aims to ensure that NORDEN, our affiliated companies and employ-
ees do not engage in any transactions in breach with the Sanctions policy
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ANTI-CORRUPTION PERFORMANCE SUMMARY 57  
NORDEN  
ANNUAL REPORT 2021  
SUSTAINABILITy  
 
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—
NORDEN  
58  
SUSTAINABILITy  
ANNUAL REPORT 2021  
 
ESG PERFORMANCE
2021
8.6*
2020
8.8
2019
8.7
2021
2020
2019
ENVIRONMENTAL PERFORMANCE
SOCIAL PERFORMANCE
Energy efficiency
Employees (on shore)
EEOI (gCO2/tonnes-mile)
Employees (average FTE)
376
40
391
35
395
32
Nationalities represented (of total workforce)
Women in managerial positions (%)
Gender with the lowest representation ♀ (%)
Energy consumption
36
31
26
Heavy fuel oils (1,000 tonnes)
Distillate fuel oils (1,000 tonnes)
Very low sulphur residuals (1,000 tonnes)
Electricity (MWh)
89
158
106
157
1,134
156
39
36
35
1,231
1,510
61,681
1,098
1,230
56,765
17
Safety (at sea)
1,233
52,988
Fatalities related to work safety
Lost time injury frequency (million working hours)
0
0
0
Total energy consumption (TJ)
0.8
0.6
1.5
Transport work (million tonnes cargo x mile)
GOVERNANCE PERFORMANCE
Transport work
492,458
487,887
469,897
Shareholder-elected board members
Gender with the lowest representation ♀ (%)
Attendance (%)
CO2 emissions (1,000 tonnes)
33
33
99
33
97
Direct CO2 emissions (Scope 1 GHG protocol)
Indirect CO2 emissions (Scope 2 GHG protocol)
Other indirect CO2 emissions (Scope 3 GHG protocol)
Total CO2 emissions
4,663
0.3
4,294
0.2
4,088
0.2
100
0.3
1.4
3.6
4,664
4,296
4,092
Other emissions (1,000 tonnes)
SOx emissions
15
15
54
NOx emissions
130
134
129
Oil spills (> 1 barrel)
Oil spills
0
0
0
*) EEOI methodology was updated in 2021 to include additional emissions on NORDEN's time-charter out
vessels. Consequently, reported EEOI figures in prior years are not directly comparable to 2021. When
measuring EEOI for 2021 through the previously applied methodology, the figure would equal 9.5.
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ESG PERFORMANCE 59  
NORDEN  
ANNUAL REPORT 2021  
SUSTAINABILITy  
 
ESG ACCOUNTING POLICIES  
Boundary setting  
include comparable data from the past  
three years; five years if part of key figures.  
Significant variations in data are explained  
in the relevant section of the sustainability  
report.  
and operated vessels, including all fuels,  
gas oils and residuals used on board for  
activities such as steam, generating elec-  
tricity, marine boilers, heating, main and  
auxiliary engines. In NORDEN third-party  
commercial pool management activities,  
the consumed fuel accounted for includes  
the vessels controlled by NORDEN. Total  
daily consumption reported by vessels into  
IMOS validated with bunker acquisitions  
and deviations is regularly controlled.  
of cargo transported 1 mile based on fuel  
consumption and transport work.  
The sustainability report boundary in-  
cludes assets and employees in the parent  
company and in subsidiaries.  
From 2021 onwards the scope of EEOI  
was extended to include NORDEN's time  
chartered-out vessels.  
The reporting boundary  
ESG metrics follow below boundaries  
unless otherwise specified:  
The ESG performance table overview on  
the previous page includes performance  
data from the sustainability report sup-  
plemented by additional indicators and  
accounting policies.  
CO2 emissions (1,000 tonnes): Compatible  
with the Greenhouse Gas (GHG) Protocol  
•
Owned, leased and chartered-in vessels  
(excl. chartered-out and third-party  
pool-managed vessels)  
•
Scope 1: Direct emissions from NOR-  
DEN’s own consumption of fuel from  
owned company cars and from owned  
and chartered vessels  
•
•
Employees on shore  
Crew on board vessels (in regard to  
health and safety at sea)  
Environmental performance  
Electricity (MWh): Electricity and heat  
consumed indirectly in operational activ-  
ities for onshore offices. Based on annual  
consumption in Brazil, China, Denmark,  
Dubai, Ivory Coast and Singapore offices  
and estimated consumption in Australia,  
Canada and Cyprus offices. Excludes Chile  
and USA offices as utilities are included in  
the rent.  
NORDEN is liable for consumption, emis-  
sions and other environmental elements.  
For owned assets which are leased out to  
external parties on time charter, NORDEN  
is not liable for consumption, emissions  
and other environmental elements – the  
lessee is.  
•
All NORDEN offices across the world  
Owned and chartered vessels: Based  
on fuel consumption for the year  
º
Changes to accounting policy  
Owned company cars: Per 31 De-  
º
The scope of the Energy Efficiency Opera-  
tional Indicator metric has been extended  
from 2021 onwards to reflect that a con-  
siderable number of NORDEN operated  
vessels are time-chartered out to third-par-  
ties. Furthermore, by extending the scope,  
this minimises the risk of selection bias in  
terms of which vessels NORDEN chooses  
to operate within its own business units,  
and which vessels are chartered out to  
third parties.  
cember 2020 based on conversion  
Key2Green conversion factor 2.65 kg  
CO2/L. As of 2021, NORDEN no longer  
owns any company cars  
Energy consumption  
Transport work (1,000,000 tonnes cargo x  
mile): Transport work expresses the mass  
of cargo transported over distance, as  
registered in the Integrated Maritime Op-  
erations System (IMOS). Cargo transported  
over distance, compared with the amount  
of CO2 emitted, provides an estimate of  
fleet efficiency – see also Energy Efficiency  
Operational Indicator.  
Total energy consumption (TJ): Calculated  
by adding up tonnes of fuel and electricity  
usage, applying heating conversion factor  
40.2MJ/kg for heavy fuel oil, 42.7MJ/kg for  
distillate fuel oil, 41.7MJ/kg for very low  
sulphur residuals and 0.0036 MWh/TJ for  
electricity.  
•
•
Scope 2: Indirect emissions from pur-  
chased electricity and district heating  
Scope 3: Indirect emissions from third  
party activities. Measures CO2 emissions  
from air travel and leased company cars  
Air travel: Air travel emissions are cal-  
º
Data quality and data collection  
culated using activity data provided  
by travel agents and validated against  
spend data. Distances are converted  
to CO2e by applying DEFRA emission  
factors also accounting for the class  
of tickets. Emission factors used are  
The reporting principles of balance,  
clarity, accuracy, reliability, timeliness and  
comparability are applied when collect-  
ing information and data on NORDEN’s  
sustainability and ESG performance. Data  
Energy Efficiency Operational Indicator  
(gCO2 /cargo-mile): The Energy Efficiency  
Operational Indicator (EEOI) is a measure-  
ment of energy efficiency and is defined  
as the amount of CO2 emitted per tonne  
Heavy fuel oil and distillate fuel oil and  
very low sulphur residuals (1,000 tonnes):  
Bunker fuel consumed directly by owned  
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ANNUAL REPORT 2021 NORDEN  
60  
SUSTAINABILITy  
ESG ACCOUNTING POLICIES  
 
inclusive of Radiative forcing (RF),  
measuring the additional environmen-  
tal impact of aviation  
Leased cars: Per 31 December 2021  
based on EcoScore, Diesel: 132 g  
CO2/km, Petrol: 120 g CO2/km  
Social performance  
Employees  
for a team of at least one other employee  
as defined in Fairsail.  
Female share of total workforce (%):  
Gender with the lowest representation (%):  
The percentage of the average number  
of women FTE out of the total average  
number of FTEs during the year based on  
Fairsail.  
Scope and boundaries: Scope for full-  
time workforce, accounted for as full-  
time employees (FTE) on shore, includes  
permanent and time-limited employees  
(fixed-term, student job and temporary  
hires) in NORDEN’s offices, except for  
the indicators ‘Retention’ and ‘Turnover’,  
in which the scope includes average FTE  
amount on shore relating to permanent  
employees, excluding fixed-term,  
student roles and temporary hires.  
Gender split on shore: Gender with the  
lowest representation (%): The percentage  
of the average number of women FTE out  
of a total average number of FTEs during  
the year based on Fairsail.  
º
NOx and SOx emissions (1,000 tonnes)  
Female share of Board of Directors (%):  
Gender with the lowest representation  
(%): Percentage of shareholder-elected  
women in the Board of Directors out of the  
total number of shareholder-elected board  
members at year-end.  
•
NOx: Nitrogen oxide emissions from  
combustion of fuels from operated  
vessels. NO2 emissions from the energy  
produced by main engine multiplied  
by Tier 1 NOx limit (17 g/kWh) or Tier 2  
NOx limit (14.4 g/kWh)  
Health and safety at sea  
Lost Time Injury Frequency at sea (injuries  
per million working hours): Calculated  
based on the number of work-related acci-  
dents which causes a seafarer to be unable  
to work for more than 24 hours as reported  
by the technical managers.  
Employees (FTE): Average full-time equiv-  
alent number of employees on shore as  
defined in NORDEN’s HR system (Fairsail).  
Female share of Senior Management (%):  
Gender with the lowest representation (%):  
Percentage of women FTE in the Senior  
Management out of the total number of  
FTEs at year-end.  
•
SOx: Sulphur oxide emissions mainly  
stem from the burning of the sulphur  
compound in the fuel from owned and  
operated vessels. SO2 emissions are  
calculated from the fuel quantity con-  
sumed during the year multiplied by the  
average sulphur content in the bunker  
fuel purchased by NORDEN’s Bunker  
Department  
Fatalities: Work safety related fatalities  
among crew members on board NORDEN  
owned vessels.  
Scope for employees, women in mana-  
gerial positions, gender split: Average  
FTE calculation includes permanent and  
time-limited employees (fixed-term, stu-  
dent roles and temporary hires).  
Female share of Managers of Managers  
(%): Gender with the lowest representation  
(%): Percentage of women FTE in Managers  
of Managers out of the total number of  
FTEs at year-end.  
Governance performance  
Shareholder-elected board members:  
Gender with the lowest representation  
(%): Percentage of shareholder-elected  
women in the Board of Directors out of the  
total number of shareholder-elected board  
members at year-end.  
Nationalities represented (of total work-  
force): Number of nationalities in total  
workforce based on Fairsail.  
Oil spills (> 1 barrel): Includes incidents  
of oil spills larger than 1 barrel (159 litres)  
into the sea from owned and/or operat-  
ed vessels as reported by the technical  
managers.  
Female share of Managers (%): Average  
number of women FTE in a manager  
positions out of a total average FTEs. A  
manager position is defined as a person  
with responsibility for a team of at least one  
other FTE as defined in Fairsail.  
Women in managerial positions (%): Aver-  
age FTE number of women in managerial  
positions on shore out of the total pool of  
average FTE managers on shore. Managers  
are defined as a person with responsibility  
Attendance (%): Attendance rate at board  
meetings attended by shareholder-elected  
and employee-elected board members  
throughout the year.  
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ESG ACCOUNTING POLICIES 61  
NORDEN  
ANNUAL REPORT 2021  
SUSTAINABILITy  
 
SIGNATURES  
63 Statement by the Board of Directors and Executive Management  
64 Independent Auditor’s Report  
68 Independent Limited Assurance Report  
—
—
NORDEN  
62  
SIGNATURES  
ANNUAL REPORT 2021  
 
STATEMENT BY THE BOARD OF DIRECTORS
AND EXECUTIVE MANAGEMENT
The Board of Directors and the Executive
Management have today considered and
adopted the annual report of Dampskibs-
selskabet NORDEN A/S for the financial
year 1 January–31 December 2021.
accordance with the Danish Financial State-
ments Act.
in the operations and financial circum-
stances of the Group and the Parent
Company, of the results for the year and of
the financial position of the Group and the
Parent Company as well as a description
of the most significant risks and elements
of uncertainty, which the Group and the
Parent Company are facing.
performance and social responsibility for
the financial year 2021.
In our opinion, the Consolidated Financial
Statements and the Parent Company Finan-
cial Statements give a true and fair view of
the financial position at 31 December 2021
of the Group and the Parent Company and
of the results of the Group’s and the Parent
Company’s operations and the Group’s
consolidated cash flows for the financial
year 2021.
In our opinion, the annual report of
Dampskibsselskabet NORDEN A/S for the
financial year 1 January–31 December 2021
with the file name "norden-2021-12-31-en.
zip" is prepared, in all material respects, in
compliance with the ESEF Regulation.
The Consolidated Financial Statements are
prepared in accordance with International
Financial Reporting Standards as adopted
by the EU and additional requirements
stated in the Danish Financial Statements
Act. The Parent Company Financial State-
ments are prepared in accordance with
the Danish Financial Statements Act. The
Management’s Review is also prepared in
In our opinion, the ESG performance
data on page 59 is presented in accord-
ance with the stated accounting policies
on pages 60–61 and provides a fair and
balanced view of the Group’s sustainability
We recommend that the annual report be
adopted at the annual general meeting on
24 March 2022.
In our opinion, the Management’s Review
provides a fair review of the development
Copenhagen, 3 March 2022
Executive Management  
Jan Rindbo
Martin Badsted
CEO
CFO
Board of Directors  
Klaus Nyborg
Johanne Riegels Østergård
Karsten Knudsen
Chairman
Vice Chairman
Thomas Intrator
Stephen John Kunzer
Helle Østergaard Kristiansen
Benedicte Hedengran Wegener
Christina Lerchedahl Christensen
Henrik Røjel
(employee-elected)
(employee-elected)
(employee-elected)
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STATEMENT BY THE BOARD OF DIRECTORS AND ExECUTIVE MANAGEMENT 63  
NORDEN  
ANNUAL REPORT 2021  
SIGNATURES  
 
INDEPENDENT AUDITOR’S REPORT
To the shareholders of
What we have audited
Independence
Dampskibsselskabet NORDEN A/S
The Consolidated Financial Statements
and the Parent Company Financial State-
ments of Dampskibsselskabet NORDEN
A/S for the financial year 1 January to 31
December 2021, pages 70-132, comprise
Income Statement, Balance Sheet, State-
ment of Changes in Equity and Notes,
including summary of significant account-
ing policies for the Group as well as for the
Parent Company and Statement of Com-
prehensive Income and Statement of Cash
Flows for the Group. Collectively referred
to as the “Financial Statements”.
We are independent of the Group in
accordance with the International Ethics
Standards Board for Accountants’ Inter-
national Code of Ethics for Professional
Accountants (IESBA Code) and the addi-
tional ethical requirements applicable in
Denmark. We have also fulfilled our other
ethical responsibilities in accordance with
these requirements and the IESBA Code.
Report on the audit of the
Financial Statements
Our opinion
In our opinion, the Consolidated Financial
Statements give a true and fair view of the
Group’s financial position at 31 Decem-
ber 2021 and of the results of the Group’s
operations and cash flows for the financial
year 1 January to 31 December 2021 in
accordance with International Financial
Reporting Standards as adopted by the
EU and further requirements in the Danish
Financial Statements Act.
To the best of our knowledge and belief,
prohibited non-audit services referred to in
Article 5(1) of Regulation (EU) No 537/2014
were not provided.
Basis for opinion
We conducted our audit in accordance
with International Standards on Auditing
(ISAs) and the additional requirements ap-
plicable in Denmark. Our responsibilities
under those standards and requirements
are further described in the Auditor’s
responsibilities for the audit of the Financial
Statements section of our report.
Appointment
We were first appointed auditors of Damp-
skibsselskabet NORDEN A/S for the finan-
cial year 1998. We have been reappointed
annually by shareholder resolution for a to-
tal period of uninterrupted engagement of
24 years including the financial year 2021.
Moreover, in our opinion, the Parent Com-
pany Financial Statements give a true and
fair view of the Parent Company’s financial
position at 31 December 2021 and of the
results of the Parent Company’s opera-
tions for the financial year 1 January to 31
December 2021 in accordance with the
Danish Financial Statements Act.
Key audit matters
We believe that the audit evidence we have
obtained is sufficient and appropriate to
provide a basis for our opinion.
Key audit matters are those matters that, in
our professional judgement, were of most
significance in our audit of the Financial
Statements for 2021. These matters were
addressed in the context of our audit of
the Financial Statements as a whole, and
in forming our opinion thereon, and we do
not provide a separate opinion on these
matters.
Our opinion is consistent with our Auditor’s
Long-form Report to the Audit Committee
and the Board of Directors.
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ANNUAL REPORT 2021 NORDEN  
64  
SIGNATURES  
INDEPENDENT AUDITOR’S REPORT  
 
Key audit matter
How our audit addressed the key audit matter
Statement on Management’s Review
Management is responsible for Manage-
ment’s Review, pages 3-61.
Valuation of vessels, right-of-use assets and
prepayments on vessels and new-buildings
The carrying amount of the vessels, right-of-use assets and prepay-
ments on vessels and newbuildings is significant.
We discussed with Management and evaluated the methodol-
ogy by which indicators of impairment of vessels, right-of-use
assets and prepayments on vessels and newbuildings are
monitored, including the identification of CGUs.
Our opinion on the Financial Statements
does not cover Management’s Review, and
we do not express any form of assurance
conclusion thereon.
Management monitors continuously the carrying amount of the
above-mentioned assets, managed on a portfolio basis. The assessment
is based on the cash-generating units (CGUs); Dry Cargo and Tankers.
For the CGU’s Dry Cargo and Tankers, we obtained Manage-
ment’s assessment of the recoverable amount of these assets.
Regarding Management’s assessment of value-in-use, we:
In connection with our audit of the
Management performs an impairment test if any indication of im-
pairment or reversal of previous impairments exists. The indications
assessed by Management comprise, among others, vessel values,
newbuilding prices and future development in freight and time charter
rates.
Financial Statements, our responsibility
is to read Management’s Review and, in
doing so, consider whether Management’s
Review is materially inconsistent with the
Financial Statements or our knowledge
obtained in the audit, or otherwise appears
to be materially misstated.
•
Assessed the methodology used by Management to
calculate the future cash flows from the assets assigned to
the CGU’s.
•
•
Evaluated relevant controls and Management’s review of
controls.
If indications exist, the carrying amount of the mentioned assets may
be subject to material impairment or reversal of previous recognised
impairments.
Assessed and challenged Management’s underlying
significant assumptions including expected short- and
long-term rates applied, WACC, useful lives, scrap values
and relevant macroeconomic assumptions.
Moreover, we considered whether Man-
agement’s Review includes the disclosures
required by the Danish Financial State-
ments Act.
As of 31 December 2021, Management concluded that such indications
exist for both CGU’s; Dry Cargo and Tankers. Consequently, impairment
tests were performed, resulting in no need for impairment or reversal of
previous recognised impairments. When impairment tests are per-
formed, Management assesses the recoverable amount.
•
•
Tested the mathematical accuracy of the value-in-use mod-
els prepared by Management
Based on the work we have performed, in
our view, Management’s Review is in ac-
cordance with the Consolidated Financial
Statements and the Parent Company Finan-
cial Statements and has been prepared in
accordance with the requirements of the
Danish Financial Statements Act. We did
not identify any material misstatement in
Management’s Review.
We focused on this area because Management is required to exercise
considerable judgement and because of the inherent complexity and
subjectivity in estimating the recoverable amount.
Assessed the sensitivity calculations performed by Man-
agement.
We assessed the appropriateness of disclosures of these matters
in the Financial Statements.
Refer to Note 3.1 and Note 4.7 in the Consolidated Financial State-
ments and Note 3.1 and Note 4.6 in the Parent Company Financial
Statements.
—
—
—
INDEPENDENT AUDITOR’S REPORT 65  
NORDEN  
ANNUAL REPORT 2021  
SIGNATURES  
 
Management’s responsibilities
for the Financial Statements
Auditor’s responsibilities for the
audit of the Financial Statements
is higher than for one resulting from
error, as fraud may involve collusion,
forgery, intentional omissions, misrep-
resentations, or the override of internal
control.
evidence obtained up to the date of our
auditor’s report. However, future events
or conditions may cause the Group or
the Parent Company to cease to contin-
ue as a going concern.
Management is responsible for the prepa-
ration of consolidated financial statements
that give a true and fair view in accordance
with International Financial Reporting
Standards as adopted by the EU and fur-
ther requirements in the Danish Financial
Statements Act and for the preparation of
parent company financial statements that
give a true and fair view in accordance with
the Danish Financial Statements Act, and
for such internal control as Management
determines is necessary to enable the
preparation of financial statements that are
free from material misstatement, whether
due to fraud or error.
Our objectives are to obtain reasonable
assurance about whether the Financial
Statements as a whole are free from mate-
rial misstatement, whether due to fraud or
error, and to issue an auditor’s report that
includes our opinion. Reasonable assur-
ance is a high level of assurance, but is not
a guarantee that an audit conducted in
accordance with ISAs and the additional re-
quirements applicable in Denmark will al-
ways detect a material misstatement when
it exists. Misstatements can arise from
fraud or error and are considered material
if, individually or in the aggregate, they
could reasonably be expected to influence
the economic decisions of users taken on
the basis of these Financial Statements.
•
Obtain an understanding of internal
control relevant to the audit in order to
design audit procedures that are appro-
priate in the circumstances, but not for
the purpose of expressing an opinion
on the effectiveness of the Group’s and
the Parent Company’s internal control.
•
Evaluate the overall presentation,
structure and content of the Financial
Statements, including the disclosures,
and whether the Financial Statements
represent the underlying transactions
and events in a manner that gives a true
and fair view.
•
•
Evaluate the appropriateness of ac-
counting policies used and the reason-
ableness of accounting estimates and
related disclosures made by Manage-
ment.
•
Obtain sufficient appropriate au-
dit evidence regarding the financial
information of the entities or business
activities within the Group to express an
opinion on the Consolidated Financial
Statements. We are responsible for the
direction, supervision and performance
of the group audit. We remain solely
responsible for our audit opinion.
In preparing the Financial Statements,
Management is responsible for assessing
the Group’s and the Parent Company’s abil-
ity to continue as a going concern, disclos-
ing, as applicable, matters related to going
concern and using the going concern
basis of accounting unless Management
either intends to liquidate the Group or the
Parent Company or to cease operations, or
has no realistic alternative but to do so.
As part of an audit in accordance with ISAs
and the additional requirements applica-
ble in Denmark, we exercise professional
judgement and maintain professional scep-
ticism throughout the audit. We also:
Conclude on the appropriateness of
Management’s use of the going concern
basis of accounting and based on the
audit evidence obtained, whether a ma-
terial uncertainty exists related to events
or conditions that may cast significant
doubt on the Group’s and the Parent
Company’s ability to continue as a going
concern. If we conclude that a material
uncertainty exists, we are required to
draw attention in our auditor’s report
to the related disclosures in the Finan-
cial Statements or, if such disclosures
are inadequate, to modify our opinion.
Our conclusions are based on the audit
We communicate with those charged with
governance regarding, among other mat-
ters, the planned scope and timing of the
audit and significant audit findings, includ-
ing any significant deficiencies in internal
control that we identify during our audit.
•
Identify and assess the risks of material
misstatement of the Financial State-
ments, whether due to fraud or error,
design and perform audit procedures
responsive to those risks, and obtain
audit evidence that is sufficient and
appropriate to provide a basis for our
opinion. The risk of not detecting a ma-
terial misstatement resulting from fraud
We also provide those charged with
governance with a statement that we have
complied with relevant ethical require-
ments regarding independence, and to
—
—
—
ANNUAL REPORT 2021 NORDEN  
66  
SIGNATURES  
INDEPENDENT AUDITOR’S REPORT  
 
communicate with them all relationships
and other matters that may reasonably be
thought to bear on our independence and,
where applicable, actions taken to elimi-
nate threats or safeguards applied.
ic Format (ESEF Regulation) which includes
requirements related to the preparation of
the annual report in xHTML format and ix-
BRL tagging of the Consolidated Financial
Statements.
pliance with the ESEF Regulation based on
the evidence we have obtained, and to is-
sue a report that includes our opinion. The
nature, timing and extent of procedures se-
lected depend on the auditor’s judgement,
including the assessment of the risks of ma-
terial departures from the requirements set
out in the ESEF Regulation, whether due to
fraud or error. The procedures include:
•
Reconciling the ixBRL tagged data with
the audited Consolidated Financial
Statements.
In our opinion, the annual report of Damp-
skibsselskabet NORDEN A/S for the finan-
cial year 1 January to 31 December 2021
with the file name "norden-2021-12-31-en.
zip" is prepared, in all material respects, in
compliance with the ESEF Regulation.
From the matters communicated with
those charged with governance, we de-
termine those matters that were of most
significance in the audit of the Financial
Statements of the current period and are
therefore the key audit matters. We de-
scribe these matters in our auditor’s report
unless law or regulation precludes public
disclosure about the matter or when, in ex-
tremely rare circumstances, we determine
that a matter should not be communicated
in our report because the adverse conse-
quences of doing so would reasonably be
expected to outweigh the public interest
benefits of such communication.
Management is responsible for prepar-
ing an annual report that complies with
the ESEF Regulation. This responsibility
includes:
•
•
Testing whether the annual report is
prepared in xHTML format;
•
•
The preparing of the annual report in
xHTML format;
Hellerup, 3 March 2022
Obtaining an understanding of the
company’s ixBRL tagging process and
of internal control over the tagging
process;
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR no. 33 77 12 31
The selection and application of appro-
priate ixBRL tags, including extensions
to the ESEF taxonomy and the anchor-
ing thereof to elements in the taxonomy,
for all financial information required
to be tagged using judgement where
necessary;
Søren Ørjan Jensen
State Authorised Public Accountant
mne33226
•
•
Evaluating the completeness of the
ixBRL tagging of the Consolidated
Financial Statements;
Kristian Pedersen
State Authorised Public Accountant
mne35412
•
•
Ensuring consistency between ixBRL
tagged data and the Consolidated
Financial Statements presented in hu-
man-readable format; and
Evaluating the appropriateness of the
company’s use of ixBRL elements se-
lected from the ESEF taxonomy and the
creation of extension elements where
no suitable element in the ESEF taxono-
my has been identified;
Report on compliance with
the ESEF Regulation
As part of our audit of the Financial
Statements we performed procedures to
express an opinion on whether the annual
report of Dampskibsselskabet NORDEN
A/S for the financial year 1 January to 31
December 2021 with the filename "nor-
den-2021-12-31-en.zip" is prepared, in all
material respects, in compliance with the
Commission Delegated Regulation (EU)
2019/815 on the European Single Electron-
For such internal control as Manage-
ment determines necessary to enable
the preparation of an annual report that
is compliant with the ESEF Regulation.
•
Evaluating the use of anchoring of
extension elements to elements in the
ESEF taxonomy; and
Our responsibility is to obtain reasonable
assurance on whether the annual report is
prepared, in all material respects, in com-
—
—
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INDEPENDENT AUDITOR’S REPORT 67  
NORDEN  
ANNUAL REPORT 2021  
SIGNATURES  
 
INDEPENDENT LIMITED ASSURANCE REPORT  
ON THE CONSOLIDATED ESG PERFORMANCE DATA  
To the stakeholders of  
Dampskibsselskabet NORDEN A/S  
What we are assuring  
an understanding of internal control, and  
the procedures performed in response  
to the assessed risks; consequently, the  
level of assurance obtained in a limited  
assurance engagement is substantially  
lower than the assurance that would have  
been obtained had a reasonable assurance  
engagement been performed.  
professional standards, and applicable  
legal and regulatory requirements. Our  
work was carried out by an independent  
multidisciplinary team with experience in  
sustainability reporting and assurance.  
The scope of our work was limited to assur-  
ance over the consolidated ESG perfor-  
mance data in the annual report 2021.  
The Management of Dampskibsselska-  
bet NORDEN A/S engaged us to provide  
limited assurance on the consolidated ESG  
performance data stated in the annual  
report on page 59 for the period 1 January  
to 31 December 2021.  
Professional standards applied  
and level of assurance  
Understanding reporting and  
measurement methodologies  
We performed a limited assurance en-  
gagement in accordance with International  
Standard on Assurance Engagements  
3000 (Revised) ‘Assurance Engagements  
other than Audits and Reviews of Historical  
Financial Information’, and, in respect of  
the greenhouse gas emissions, in ac-  
cordance with International Standard on  
Assurance Engagements 3410 ‘Assurance  
engagements on greenhouse gas state-  
ments’. Greenhouse gas quantification is  
subject to inherent uncertainty because of  
incomplete scientific knowledge used to  
determine emissions factors and the values  
needed to combine emissions of different  
gasses.  
The consolidated ESG performance data  
need to be read and understood together  
with the accounting policies on pages 60-  
61, which Management is solely respon-  
sible for selecting and applying. The ab-  
sence of a significant body of established  
practice on which to draw to evaluate and  
measure non-financial information allows  
for different, but acceptable, measurement  
techniques and can affect comparability  
between entities and over time.  
Our independence and quality control  
We have complied with the independence  
requirements and other ethical require-  
ments in the International Ethics Standards  
Board for Accountants’ International Code  
of Ethics for Professional Accountants  
(IESBA Code), which is founded on funda-  
mental principles of integrity, objectivity,  
professional competence and due care,  
confidentiality and professional behaviour  
and ethical requirements applicable in  
Denmark.  
Our conclusion  
Based on the procedures we performed  
and the evidence we obtained, nothing  
has come to our attention that causes us to  
believe that the consolidated ESG perfor-  
mance data for the period 1 January to 31  
December 2021, as stated on page 59, are  
not prepared, in all material respects, in  
accordance with the ESG accounting poli-  
cies as stated on pages 60-61 of the annual  
report 2021.  
The comparative information for 2020 is  
not covered by our conclusion.  
PricewaterhouseCoopers applies Interna-  
tional Standard on Quality Control 1 and  
accordingly maintains a comprehensive  
system of quality control including docu-  
mented policies and procedures regarding  
compliance with ethical requirements,  
A limited assurance engagement is sub-  
stantially less in scope than a reasonable  
assurance engagement in relation to both  
the risk assessment procedures, including  
This conclusion is to be read in the context  
of what we state in the remainder of our  
report.  
—
—
—
ANNUAL REPORT 2021 NORDEN  
68  
SIGNATURES  
INDEPENDENT LIMITED ASSURANCE REPORT ON THE CONSOLIDATED ESG PERFORMANCE DATA  
 
Work performed  
Management's responsibilities  
Management of Dampskibsselskabet NOR-  
DEN A/S is responsible for:  
Our responsibility  
We are responsible for:  
Hellerup, 3 March 2022  
We are required to plan and perform our  
work in order to consider the risk of mate-  
rial misstatement of the data. In doing so  
and based on our professional judgement,  
we:  
PricewaterhouseCoopers  
Statsautoriseret Revisionspartnerselskab  
CVR no. 33 77 12 31  
•
Planning and performing the engage-  
ment to obtain limited assurance about  
whether the consolidated ESG perfor-  
mance data are prepared, in all material  
respects, in accordance with the ESG  
accounting policies;  
•
Designing, implementing and main-  
taining internal controls over informa-  
tion relevant to the preparation of the  
consolidated ESG performance data  
on page 59 that are free from material  
misstatement, whether due to fraud or  
error;  
Søren Ørjan Jensen  
State Authorised Public Accountant  
mne33226  
•
•
Made enquiries regarding methods,  
procedures and internal control as well  
as conducted selected interviews with  
data and reporting responsible per-  
sonnel and spot checks to underlying  
documentation;  
•
•
Forming an independent conclusion,  
based on the procedures we have per-  
formed, and the evidence obtained; and  
Jens Pultz Pedersen  
M.Sc. (engineering)  
•
•
Establishing objective accounting poli-  
cies for preparing data;  
Conducted analytical review of the ESG  
performance data and trend explana-  
tions submitted for consolidation at  
Group level;  
Reporting our conclusion to the Stake-  
holders of Dampskibsselskabet NOR-  
DEN A/S.  
Measuring and reporting the consoli-  
dated ESG performance data based on  
the applied ESG accounting policies;  
and  
•
•
Considered the disclosure and pres-  
entation of the consolidated ESG per-  
formance data; and  
•
The content of the consolidated ESG  
performance data.  
Evaluated the evidence obtained.  
—
—
—
INDEPENDENT LIMITED ASSURANCE REPORT ON THE CONSOLIDATED ESG PERFORMANCE DATA 69  
NORDEN  
ANNUAL REPORT 2021  
SIGNATURES  
 
FINANCIAL  
STATEMENTS  
71 Consolidated Financial Statements  
115 Parent Company Financial Statements  
—
—
—
ANNUAL REPORT 2021 NORDEN  
70  
FINANCIAL STATEMENTS  
GROUP  
 
CONSOLIDATED  
FINANCIAL  
STATEMENTS  
72 Income Statement  
72 Statement of Comprehensive Income  
73 Balance Sheet  
74 Statement of Cash Flows  
75 Statement of Changes in Equity  
76 Notes to the Financial Statements  
—
—
—
GROUP 71  
NORDEN  
ANNUAL REPORT 2021  
FINANCIAL STATEMENTS  
 
INCOME STATEMENT  
1 JANUARY - 31 DECEMBER  
STATEMENT OF COMPREHENSIVE  
INCOME 1 JANUARY - 31 DECEMBER  
Amount in USD million  
Note  
2021  
2020  
Amount in USD million  
Note  
2021  
2020  
Revenue  
2.1  
3,551.8
2,597.8
Profit for the year  
204.5
86.0
Other operating income  
Vessel operating costs  
Contribution margin  
2.1  
6.7
-2,908.9
649.6
8.7
-2,170.9
435.6
Items which will be reclassified to the income statement:  
Fair value adjustment for the year, cash flow hedges  
Other comprehensive income, total  
2.1/2.2  
4.2  
-35.3
-4.8
-35.3
-4.8
Overhead and administration costs  
2.2  
-117.4
-93.1
Total comprehensive income for the year, after tax  
169.2
169.2
81.2
81.2
Profit before depreciation, amortisation  
and impairment losses, etc. (EBITDA)  
532.2
342.5
Attributable to:  
Owners of Dampskibsselskabet NORDEN A/S  
Profit/(loss) from sale of vessels etc.  
2.1  
2.4  
3.2  
7.7
-295.5
1.1
-18.2
-201.9
-3.0
Depreciation, amortisation and impairment losses  
Profit/(loss) from investments in joint ventures  
Profit from operations (EBIT)  
245.5
119.4
Financial income  
Financial expenses  
Profit before tax  
2.5  
2.5  
0.3
-35.1
3.5
-30.2
92.7
210.7
Tax for the year  
2.6  
-6.2
-6.7
Profit for the year  
204.5
86.0
Attributable to:  
Owners of Dampskibsselskabet NORDEN A/S  
204.5
86.0
Earnings per share (EPS)  
4.5  
Earnings per share (USD)  
5.5
5.4
2.2
2.2
Earnings per share, diluted (USD)  
—
—
—
ANNUAL REPORT 2021 NORDEN  
72  
FINANCIAL STATEMENTS  
GROUP  
 
BALANCE SHEET AT 31 DECEMBER  
Amount in USD million  
Note  
2021  
2020  
Amount in USD million  
Note  
2021  
2020  
Vessels  
3.1  
4.7  
3.1  
3.1  
703.0
556.5
49.7
767.4
298.7
48.6
Share capital  
4.4  
4.2  
6.2
-31.2
6.5
4.1
Right-of-use assets  
Reserve for hedges  
Retained earnings  
Total equity  
Property and equipment  
Prepayments on vessels and newbuildings  
Total tangible assets  
1,018.3
993.3
891.9
902.5
11.3
15.5
1,320.5
1,130.2
Loans  
4.6  
4.7  
4.6  
302.1
269.9
98.7
282.4
213.3
-
Investments in joint ventures  
Receivables from subleasing  
Total financial assets  
3.2  
4.8  
10.0
9.1
11.5
13.0
24.5
Lease liabilities  
Bonds  
19.1
Total non-current liabilities  
670.7
495.7
Total non-current assets  
1,339.6
1,154.7
Loans  
4.6  
4.7  
39.9
337.8
226.1
13.9
-
37.6
142.1
131.2
-
Lease liabilities  
Trade payables  
Debt to joint ventures  
Tax payables  
Inventories  
117.1
23.7
65.8
13.7
Receivables from subleasing  
Freight receivables  
4.8  
3.3  
255.7
1.0
144.5
9.5
1.4
Receivables from joint ventures  
Other receivables  
Other payables  
Deferred income  
73.0
89.4
780.1  
9.4
56.8
57.5
426.6  
-
18.9
17.7
Prepayments  
136.0
410.7
963.1  
150.8
1,113.9
70.2
Cash and cash equivalents  
331.6
653.0  
17.1
Liabilities relating to vessels held for sale  
3.4  
Total current liabilities  
789.5
426.6
Vessels held for sale  
3.4  
Total current assets  
670.1
Total liabilities  
1,460.2
2,453.5
922.3
TOTAL ASSETS  
2,453.5
1,824.8
TOTAL EQUITy AND LIABILITIES  
1,824.8
—
—
—
GROUP 73  
NORDEN  
ANNUAL REPORT 2021  
FINANCIAL STATEMENTS  
 
STATEMENT OF CASH FLOWS  
1 JANUARY – 31 DECEMBER  
Amount in USD million  
Note  
2021  
2020  
Amount in USD million  
Note  
2021  
2020  
Profit for the year  
204.5
308.6
-96.4
24.8
86.0
259.7
37.3
Which can be explained as follows  
Reversal of items from the income statement  
Change in working capital  
5.2  
5.2  
4.8  
Demand deposits and cash balance  
Money market investment  
200.1  
154.1  
56.5  
120.5  
188.8  
22.3  
Instalments on sublease receivables  
Income tax, paid  
17.4
-7.6
-4.4
Other cash and cash equivalents  
Cash and cash equivalents 31 December  
Cash flows from operating activities  
433.9
396.0
410.7
331.6
Investments in vessels, vessels held for sale  
and other tangible assets  
In connection with trading in derivative financial instruments, NORDEN has established margin accounts  
with Skandinaviska Enskilda Banken (SEB) in the form of cash. At 31 December, cash held in margin accounts  
placed as security amounted to USD 58 million (USD 13 million).  
3.1/3.4  
3.1  
-92.1
-155.8
-2.4
-27.1
-71.9
-
Prepayments on newbuildings  
Investments in joint ventures  
Accounting policies  
Proceeds from sale of vessels and newbuildings  
159.8
52.0
Consolidated statement of cash flows  
Change in cash and cash equivalents with  
rate agreements of more than 3 months, etc.  
The statement of cash flows shows the Group’s cash flows for the year distributed on operating, investing  
and financing activities, net changes for the year in cash and cash equivalents at the beginning and end of  
the year.  
93.1
1.9
Cash flows from investing activities  
2.6
-45.1
Dividend paid to shareholders  
Acquisition of treasury shares  
Proceeds from share options  
Proceeds from issue of bonds  
Proceeds from loans  
-53.0
-33.1
6.6
-14.6
-24.0
-
Positive amounts indicate inflows, whereas negative amounts indicate outflows.  
4.4  
4.4  
4.6  
4.6  
4.6  
4.7  
Cash flows from operating activities  
98.7
-
Cash flows from operating activities are stated as the profit/loss for the year adjusted for non-cash  
operating items such as depreciation, profit/loss from sale of vessels, etc., changes in working capital plus  
or minus corporation tax paid or received. Working capital includes current assets less current liabilities,  
excluding the items included in cash and cash equivalents and vessels held for sale.  
417.1
-395.1
-268.4
0.3
132.0
-117.1
-175.3
1.0
Repayment of loans  
Instalments on lease liabilities  
Financial payments, received  
Financial payments, paid  
Cash flows from investing activities  
Cash flows from investing activities comprise cash flows from the acquisition and sale of non-current assets.  
-35.0
-261.9
-30.2
-228.2
Cash flows from financing activities  
Cash flows from financing activities  
Cash flows from financing activities comprise cash flows from the raising and repayment of loans and  
bonds, instalments on lease liabilities as well as payments to and from shareholders and interests received  
and paid.  
Cash flow from operating, investing and financing activities  
174.6
122.7
Liquidity at 1 January  
217.1
-2.4
92.9
1.5
Exchange rate adjustments  
Change in liquidity for the year  
Liquidity at 31 December  
Liquidity  
174.6
389.3
122.7
217.1
Liquidity comprises marketable securities with a term of less than 3 months and cash not subject to signifi-  
cant limits to its availability.  
Cash and cash equivalents with rate agreements  
of more than 3 months, etc.  
Cash and cash equivalents  
21.4
114.5
Cash and cash equivalents are measured in the balance sheet at nominal value and mainly consist of  
demand deposits, cash balance and money market investments.  
Cash and cash equivalents 31 December  
410.7
331.6
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—
—
ANNUAL REPORT 2021 NORDEN  
74  
FINANCIAL STATEMENTS  
GROUP  
 
STATEMENT OF CHANGES IN EQUITY  
AT 31 DECEMBER  
Shareholders of NORDEN  
Share  
capital for hedges  
Reserve  
Retained  
earnings  
Amount in USD million  
Note  
Total  
Equity at 1 January 2021  
6.5
4.1
891.9
902.5
Total comprehensive income for the year  
Capital reduction  
-
-35.3
204.5
0.3
169.2
-
-0.3
-
Acquisition of treasury shares  
Exercise of share options  
Dividends paid  
4.4  
5.3  
4.4  
-
-
-33.1
6.6
-33.1
6.6
-
-
-
-
-57.8
4.8
-57.8
4.8
Dividends related to treasury shares  
Share-based payment  
-
-
-
-
2.3  
1.1
1.1
Changes in equity  
-0.3
-35.3
126.4
90.8
Equity at 31 December 2021  
6.2
-31.2
1,018.3
993.3
Shareholders of NORDEN  
Share  
capital for hedges  
Reserve  
Retained  
earnings  
Amount in USD million  
Note  
Total  
Equity at 1 January 2020  
6.7
8.9
843.4
859.0
Total comprehensive income for the year  
Capital reduction  
-
-4.8
86.0
0.2
81.2
-
-0.2
-
Acquisition of treasury shares  
Dividends paid  
4.4  
4.4  
-
-
-24.0
-15.8
1.2
-24.0
-15.8
1.2
-
-
Dividends related to treasury shares  
Share-based payment  
-
-
-
-
2.3  
0.9
0.9
Changes in equity  
-0.2
-4.8
48.5
43.5
Equity at 31 December 2020  
6.5
4.1
891.9
902.5
See note 4.4 “Share capital and dividends” for a specification of reserves available for distribution as dividends  
and note 4.2 ”Derivatives” for a specification of distribution of reserves on cash flow hedging.  
—
—
—
GROUP 75  
NORDEN  
ANNUAL REPORT 2021  
FINANCIAL STATEMENTS  
 
NOTES TO THE FINANCIAL STATEMENTS  
– CONTENTS  
SECTION 1  
SECTION 4  
SIGNIFICANT ACCOUNTING POLICIES  
AND SIGNIFICANT ACCOUNTING  
ESTIMATES AND JUDGEMENTS  
CAPITAL STRUCTURE AND RISKS  
4.1 Financial risk management  
4.2 Derivatives  
94  
98  
1.1 Basis of preparation  
76  
78  
78  
4.3 Fair value hierarchy  
4.4 Share capital and dividends  
4.5 Earnings per share  
4.6 Loans and bonds  
101  
102  
103  
103  
105  
108  
1.2 Basis of consolidation  
1.3 General accounting policies  
1.4 Significant accounting estimates and judgements 79  
1.5 Changes in accounting policies and disclosures  
1.6 Reporting under the ESEF Regulation  
79  
79  
4.7 Leases - lessee  
4.8 Leases - lessor and COAs  
SECTION 2  
SECTION 5  
INCOME STATEMENT  
OTHER NOTES  
2.1 Segment information  
2.2 Expenses by nature  
2.3 Staff costs and remuneration  
2.4 Depreciation  
80  
83  
83  
84  
84  
85  
5.1 Fees to auditor appointed at the general meeting 110  
5.2 Cash flow specifications  
110  
111  
113  
113  
113  
114  
5.3 Share-based payment  
5.4 Unrecognised contingent assets and liabilities  
5.5 Related party disclosures  
5.6 Events after the reporting date  
5.7 Group structure  
2.5 Financial income and expenses  
2.6 Taxation  
SECTION 3  
INVESTED CAPITAL AND WORKING CAPITAL  
3.1 Tangible assets  
86  
91  
92  
92  
93  
3.2 Investments in joint ventures  
3.3 Freight receivables  
3.4 Vessels held for sale and related liabilities  
3.5 Joint operations  
—
—
—
ANNUAL REPORT 2021 NORDEN  
76  
FINANCIAL STATEMENTS  
GROUP  
 
NOTES TO THE FINANCIAL STATEMENTS  
1.1 Basis of preparation  
Section 1  
Significant accounting policies  
and significant accounting  
estimates and judgements  
This note provides a list of accounting policies adopted in the preparation of the Consolidated Finan-  
cial Statements and the Financial Statements of the Parent Company to the extent they have not been  
disclosed in the respective notes below. These policies have been consistently applied to all the years  
presented, unless otherwise stated.  
1.1 Basis of preparation  
77  
78  
78  
1.2 Basis of consolidation  
1.3 General accounting policies  
Dampskibsselskabet NORDEN A/S with its subsidiaries is one of Denmark’s oldest internationally operating
shipping companies. NORDEN operates in Dry Cargo and Tankers worldwide.
1.4 Significant accounting estimates and judgements 79  
Dampskibsselskabet NORDEN A/S is a public limited company incorporated in Denmark and is listed on  
Nasdaq Copenhagen.  
1.5 Changes in accounting policies and disclosures  
1.6 Reporting under the ESEF Regulation  
79  
79  
Principal accounting policies  
The annual report for the period 1 January - 31 December 2021 with comparative figures comprises the  
Consolidated Financial Statements of Dampskibsselskabet NORDEN A/S (the Parent Company) and its  
subsidiaries (the Group) and the Financial Statements of the Parent Company.  
The Consolidated Financial Statements of the Group have been prepared on a going concern basis and in  
accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and additional  
requirements from the Danish Financial Statements Act.  
The Financial Statements of the Parent Company, Dampskibsselskabet NORDEN A/S, have been prepared  
in accordance with the Danish Financial Statements Act applying to enterprises of reporting class D.  
Measurement basis  
The Consolidated Financial Statements and the Financial Statements of the Parent Company have been  
prepared based on the historical cost principle, with the exception of the following assets and liabilities:  
• Derivative financial instruments, which are measured at fair value  
• Non-current assets and groups of assets held for sale are measured at the lower of carrying amount  
before the changed classification and fair value less selling costs  
USD is the functional currency of all enterprises in the Group as well as the Parent Company. In the annual  
report, the presentation currency is USD, and amounts are presented in million USD with one decimal  
rounded, except when otherwise stated.  
—
—
—
GROUP 77  
NORDEN  
ANNUAL REPORT 2021  
FINANCIAL STATEMENTS  
 
NOTES TO THE FINANCIAL STATEMENTS  
1.1 Basis of preparation – continued  
Applying materiality  
Deferred income  
The Financial Statements are a result of processing large numbers of transactions and aggregating those  
transactions into classes according to their nature. When aggregated, the transactions are presented in  
classes of similar items in the financial statements. If a line item is not individually material, it is aggregated  
with other items of a similar nature in the Financial Statements or in the notes.  
Deferred income arises from prepayments for voyages and time-charter income. Part of deferred income  
comprises prepaid time-charter income comprising a lease element as well as a service element.  
Foreign currency translation  
A functional currency is determined for each of the reporting entities in the Group. The functional currency  
is the currency in the primary economic environment in which the reporting entity operates. Transactions in  
currencies other than the functional currency are transactions in foreign currencies.  
There are substantial disclosure requirements throughout IFRS. Management provides specific disclosures  
required by IFRS unless the information is considered immaterial to the economic decision-making of the  
users of these Financial Statements or not applicable.  
Transactions in foreign currencies during the year are translated at the exchange rates at the transaction  
date. Gains and losses arising between the exchange rate at the transaction date and the exchange rate at  
the date of payment are recognised in the income statement as “Financial income” or “Financial expenses”.  
1.2 Basis of consolidation  
Consolidation principles  
The Consolidated Financial Statements comprise the Parent Company, Dampskibsselskabet NORDEN A/S  
and subsidiaries. An investment is classified as a subsidiary when below conditions are met:  
Receivables, payables and other monetary items denominated in foreign currencies that have not been  
settled at the reporting date are translated at the exchange rates at the reporting date. Differences  
between the exchange rates at the transaction date and the exchange rate at the reporting date are recog-  
nised in the income statement as “Financial income” or “Financial expenses”.  
• Dampskibsselskabet NORDEN A/S has control over the company  
• Dampskibsselskabet NORDEN A/S is exposed to variability in return on the investment  
• The control over the Company can be used to affect the return on the investment  
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using  
the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a  
foreign currency are translated using the exchange rates at the date, when fair value in a foreign currency  
are translated using the exchange rate at the date, when the fair value is determined. The gain or loss  
arising on translation of non-monetary items measured at fair value is treated in line with the recognition of  
the gain or loss on the change in fair value of the item.  
At consolidation, intra-group income and expenses, shareholdings, dividends and accounts as well as un-  
realised intra-group gains and losses on transactions between the consolidated enterprises are eliminated.  
The Financial Statements used in the consolidation are prepared in accordance with the Group’s account-  
ing policies. The Consolidated Financial Statements are prepared on the basis of the Financial Statements  
of the Parent Company and the subsidiaries by aggregating items of a uniform nature.  
In determining the spot exchange rate used on initial recognition of the related asset, expense or income  
on the derecognition of a non-monetary asset or non-monetary liability relating to advance consideration,  
the date of the transaction is the date on which the Group initially recognises the non-monetary asset or  
non-monetary liability arising from the advance consideration. If there are multiple payment or receipts in  
advance, the Group determines the transaction date for each payment or receipt of advance consideration.  
Newly acquired or newly established enterprises are recognised in the Consolidated Financial Statements  
from the date of acquisition using the purchase method. Enterprises divested or wound up are included  
in the consolidated income statement until the date of disposal. Comparative figures are not restated to  
reflect acquisitions or companies wound up.  
Financial ratios  
1.3 General accounting policies  
Financial ratios are calculated in accordance with the “Recommendations and Financial Ratios” issued by  
the Danish Association of Financial Analysts, unless specifically stated. However, “Profit/(loss) from sale of  
vessels, etc.” is not included in EBITDA. The figures are adjusted for the Group’s holding of treasury shares.  
Definitions of key figures and financial ratios are shown on page 133.  
Inventories  
Inventories primarily comprise of bunker and lubrication oil kept on board vessels. Inventories are meas-  
ured at the lower of either cost according to FIFO method or net realisable value.  
Prepayments  
Non-IFRS financial measures  
Prepayments include costs incurred regarding the succeeding financial year such as prepaid hire, interest  
and insurance premiums.  
In the annual report, the Group discloses certain financial measures of the Group’s financial performance,  
financial position and cash flows that reflect adjustments to the most directly comparable measures calcu-  
—
—
—
ANNUAL REPORT 2021 NORDEN  
78  
FINANCIAL STATEMENTS  
GROUP  
 
NOTES TO THE FINANCIAL STATEMENTS  
1.3 General accounting policies - continued  
lated and presented in accordance with IFRS. These non-IFRS financial measures may not be defined and  
calculated by other companies in the same manner and may thus not be comparable.  
Adoption of new or amended IFRSs  
NORDEN has implemented the following amendments and interpretations to existing standards:  
The non-IFRS financial measures disclosed in the annual report are:  
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16: IBOR-reform, phase 2.  
• Adjusted Results for the year – Profit/loss for the year excluding profit/loss from sale of vessels etc.  
• Contribution margin – The contribution margin is defined as Revenue less Vessel operating costs plus  
Other operating income, net. Using the terminology in the segment reporting in note 2.1 “Segment  
information”, contribution margin is defined as T/C equivalent revenue less Charter hire for vessels and  
OPEx element less Operating costs plus Other operating income/(expense).  
The amendments listed above did not have any impact on the amounts recognised in prior periods and  
are not expected to significantly affect the current or future periods.  
Standards issued but not yet effective  
Certain new accounting standards, amendments to accounting standards and interpretations have been  
published that are not mandatory for 31 December 2021 reporting periods and have not been early  
adopted by the Group. These standards, amendments or interpretations are not expected to have a materi-  
al impact on NORDEN in the current or future reporting periods and on foreseeable future transactions.  
1.4 Significant accounting estimates and judgements  
The preparation of the Consolidated Financial Statements of the Group and the Financial Statements of the  
Parent Company requires Management to make estimates and judgements. These are the basis for recog-  
nition and measurement of the Group’s and Parent Company’s income, expenses, assets and liabilities.  
1.6 Reporting under the ESEF Regulation  
The Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF  
Regulation) has introduced a single electronic reporting format for the annual financial reports of issuers  
with securities listed on the EU regulated markets.  
The applied estimates are based on historical data and other factors that Management considers appropri-  
ate under the given circumstances, but which are inherently uncertain or unpredictable. Such assumptions  
may be incomplete or inaccurate, and unexpected events or circumstances may occur. In addition, the  
Group is subject to risks and uncertainties that may cause actual outcomes to deviate from these estimates.  
The ESEF Regulation sets out the annual financial reports shall be disclosed using the xHTML format  
and that the primary Consolidated Financial Statements shall be tagged using inline extensible Business  
Reporting Language (ixBRL).  
It may be necessary to change previous estimates as a result of changes to the assumptions on which the  
estimates were based or due to new information or subsequent events that affects the current as well as  
future periods.  
ixBRL tags shall comply with the ESEF taxonomy, which is included in the ESEF Regulation and developed  
based on the IFRS taxonomy published in the IFRS Foundation.  
Below are the accounting estimates and judgements, which Management deems to be significant to the  
preparation of the Financial Statements:  
As part of the tagging process financial statement line items are marked up to elements in the ESEF taxon-  
omy. If a financial statement line item is not defined in the ESEF taxonomy, an extension to the taxonomy is  
created. Extensions have to be anchored in the ESEF taxonomy, except for extensions which are subtotals.  
•
•
Impairment (note 3.1 “Tangible assets”) (Estimate and judgement)  
Non-lease component for leases under IFRS 16 Leases (note 4.7 “Leases - lessee”) (Estimate)  
The annual report submitted to the Danish Financial Supervisory Authority (The Officially Appointed Mech-  
anisms) consists of the xHTML document together with some technical files all included in a ZIP file named  
"norden-2021-12-31-en.zip"  
The accounting policies are described in each of the specific notes in the Financial Statements, which also  
include additional description of the most significant accounting estimates and judgements.  
1.5 Changes in accounting policies and disclosures  
The Group has adopted standards and interpretations effective as of 1 January 2021. The Group has not  
early adopted any standards, interpretations or amendments that have been issued but are not yet effec-  
tive.  
—
—
—
GROUP 79  
NORDEN  
ANNUAL REPORT 2021  
FINANCIAL STATEMENTS  
 
NOTES TO THE FINANCIAL STATEMENTS  
2.1 Segment information  
Accounting policies  
Section 2  
Income statement  
2.1 Segment information  
2.2 Expenses by nature  
2.3 Staff costs and remuneration  
2.4 Depreciation  
80  
83  
83  
84  
84  
85  
The segment information is provided on the NORDEN Group’s three business segments: Asset Manage-  
ment, Dry Operator and Tanker Operator. The information is based on the Group’s organisation, business  
management and management control, including internal financial reporting to NORDEN’s operative  
management.  
2.5 Financial income and expenses  
2.6 Taxation  
NORDEN’s operative management function comprises the Executive Management and the Board of Direc-  
tors in union. The Executive Management is responsible for the day-to-day management. The Board of Di-  
rectors approves strategy, action plans, targets and budgets and limits for financial and market risks, and it  
supervises the Executive Management. The Executive Management’s and Board of Directors’ functions and  
responsibilities are described in further detail in the section “Corporate governance” in the Management's  
Review. The operative management function assesses performance and carries out allocation of resources  
on the basis of the Adjusted Result for the year.  
The Asset Management segment handles owned vessels and charters in long-term vessel capacity and  
charters out its capacity of owned and long-term chartered tonnage to Dry Operator and Tanker Operator  
at market rates and to third parties.  
The Dry Operator segment offers transport of bulk commodities such as grain, coal, iron ore and sugar. In  
addition, Dry Operator handles NORDEN’s short-term dry cargo activities, i.e. optimising the actual cargo  
liftings and voyage execution. The Tanker Operator segment offers transport of fuel oil or refined oil prod-  
ucts. The vessel capacity comprises vessels chartered on short-term basis either from third parties or from  
Asset Management at market rates.  
NORDEN’s segments generate revenue consisting of freight and T/C income from owned and chartered  
vessels and commercial management income. Information is not provided by geographical segment as  
the global market is a unit, and the activities of the individual vessels are not limited to specific parts of the  
world. Nor does the internal financial reporting for the operative management provide such information. It  
is therefore not possible to provide geographical segment information on revenue from external custom-  
ers or non-current assets.  
Presentation of the segment income statement items and their order is consistent with NORDEN’s consol-  
idated income statement, except for voyage costs, which are not included in the item “Vessel operating  
costs” but presented as a separate item, and the segment income statement therefore comprises the sub-  
total “T/C equivalent revenue”. The Group has chosen to disclose profit/(loss) from sales of vessels, even  
though this item is not included in the Adjusted Result for the year.  
—
—
—
ANNUAL REPORT 2021 NORDEN  
80  
FINANCIAL STATEMENTS  
GROUP  
 
NOTES TO THE FINANCIAL STATEMENTS  
2.1 Segment information – continued  
The methods of allocating income statement items to segments are consistent. The allocation between  
Asset Management, Dry Operator and Tanker Operator is as follows:  
consumption, other voyage costs such as commissions and port charges, repair and maintenance costs,  
insurance costs, crew wages and other operating expenses. Costs directly attributable to transportation of  
the vessel to the loading port are capitalised and amortised over the course of the transportation period.  
Vessel operating costs other than these capitalised costs are recognised upon receipt of services in  
accordance with the charter parties concluded.  
•
•
Items included in the segment profit are allocated to the extent that the items are directly or indirectly  
attributable to the segments.  
Items allocated by indirect calculation, the allocation keys are defined on the basis of each segment’s  
drawing on key resources.  
Overhead and administration costs  
Other external costs comprise costs of properties, travel, office expenses, external assistance, etc.  
Inter-segment transactions comprise charter hire from Dry Operator and Tanker Operator to Asset Man-  
agement.  
Accounting estimates  
In recognition of freight income and voyage costs, including net income from pool arrangements, NOR-  
DEN decides on closing dates, voyages, etc.  
Revenue  
Revenue comprises the present value of services rendered, net of discounts, and revenue obtained from  
subleasing. Services rendered comprise freight income and time charter income. Revenue is recognised in  
the income statement for the financial year as earned.  
In connection with the recognition of the non-lease component of lease contracts that meets the criteria  
of recognition of a right-of-use asset and lease liability in accordance with IFRS 16 “Leases”, see note 4.7  
“Leases – lessee”.  
All freight income and voyage costs are recognised as the freight services are rendered (percentage of  
completion). The percentage of completion is determined using the load-to-discharge method based on  
the percentage of the estimated duration of the voyage completed at the reporting date. According to  
this method, freight income and related costs are recognised in the income statement according to the  
entered charter parties from the vessel’s load date to the delivery of the cargo (discharge). The voyage  
begins on the date when the cargo is loaded, and the voyage ends at the date of the discharge (load to  
discharge). This applies to all spot transports and transports under Contracts of Affreightment (COAs).  
Costs directly attributable to relocating the vessel to the load port under the contract are capitalised to the  
extent that they are recoverable.  
Demurrage is recognised if the claim is considered probable.  
Gain/loss on subleases, the derecognised right-of-use asset, is recognised in the income statement as  
Revenue.  
Other operating income  
Management income, mainly income in connection with administration of pool arrangements, is recog-  
nised upon receipt of the services in accordance with the management agreements concluded.  
Vessel operating costs  
Vessel operating costs comprise the expenses, excluding depreciation, incurred to generate the revenue  
for the year. Vessel operating costs therefore include charter hire for chartered vessels, bunker oil  
—
—
—
GROUP 81  
NORDEN  
ANNUAL REPORT 2021  
FINANCIAL STATEMENTS  
 
NOTES TO THE FINANCIAL STATEMENTS  
2.1 Segment information – continued  
Asset  
Dry  
Tanker  
Elimi-  
Asset  
Dry  
Tanker  
Elimi-  
Amount in USD million  
Management Operator Operator  
nations  
Total  
Amount in USD million  
Management Operator Operator  
nations  
Total  
2021  
2020  
Revenue – services rendered, external  
Revenue – services rendered, internal  
Revenue – sublease financial income  
Voyage costs*  
68.0  
339.8  
1.2  
3,146.4  
-
0.2  
-1,129.5  
336.0  
-
-339.8  
-
3,550.4  
-
1.4  
-1,268.6  
Revenue – services rendered, external  
Revenue – services rendered, internal  
Revenue – sublease financial income  
Voyage costs*  
108.0  
305.7  
1.7  
2,014.8  
473.3  
-
-305.7  
-
2,596.1  
-
1.7  
-1,090.1  
-
-
-
-
-
-
-17.8  
-141.1  
19.8  
-2.9  
-925.3  
-166.6  
4.7  
T/C equivalent revenue  
391.2  
2,017.1  
194.9  
-320.0  
2,283.2  
T/C equivalent revenue  
412.5  
1,089.5  
306.7  
-301.0  
1,507.7  
Other operating income/(expenses)  
Charter hire and OPEx element*  
Operating costs*  
0.3  
-114.3  
-73.1  
-5.7  
-1,572.8  
-0.2  
12.9  
-200.7  
-
-0.8  
320.8  
-
6.7  
-1,567.0  
-73.3  
Other operating income/(expenses)  
Charter hire and OPEx element*  
Operating costs*  
-1.2  
-106.2  
-75.5  
-1.0  
-950.9  
-
10.9  
-249.2  
-
-
301.0  
-
8.7  
-1,005.3  
-75.5  
Contribution margin  
204.1  
438.4  
7.1  
-
649.6  
Contribution margin  
229.6  
137.6  
68.4  
-
435.6  
Overhead and administration costs  
-11.4  
-87.7  
-18.3  
-
-117.4  
Overhead and administration costs  
-21.2  
-52.7  
-19.2  
-
-93.1  
Profit/loss before depreciation,  
amortisation and impairment  
losses, etc. (EBITDA)  
Profit/loss before depreciation,  
amortisation and impairment  
losses, etc. (EBITDA)  
192.7  
350.7  
-11.2  
-
532.2  
208.4  
84.9  
49.2  
-
342.5  
Profit/(loss) from sale of vessels, etc.  
Depreciation, amortisation  
7.7  
-
-
-
7.7  
Profit/(loss) from sale of vessels, etc.  
Depreciation, amortisation  
-18.2  
-
-
-
-18.2  
and impairment losses  
Share of result from joint ventures  
-168.3  
1.1  
-110.3  
-
-16.9  
-
-
-
-295.5  
1.1  
and impairment losses  
Share of result from joint ventures  
-151.5  
-3.0  
-21.4  
-
-29.0  
-
-
-
-201.9  
-3.0  
Profit/loss from operations (EBIT)  
33.2  
240.4  
-28.1  
-
245.5  
Profit/loss from operations (EBIT)  
35.7  
63.5  
20.2  
-
119.4  
Financial income  
Financial expenses  
-0.1  
-27.5  
0.4  
-6.8  
-
-
-
0.3  
-35.1  
Financial income  
Financial expenses  
1.0  
-26.1  
2.3  
-2.8  
0.2  
-1.3  
-
-
3.5  
-30.2  
-0.8  
Profit/loss before tax  
5.6  
234.0  
-28.9  
-
210.7  
Profit/loss before tax  
10.6  
63.0  
19.1  
-
92.7  
Tax for the year  
-0.5  
-4.5  
-1.2  
-
-6.2  
Tax for the year  
-1.3  
-4.5  
-0.9  
-
-6.7  
Profit/loss for the year  
5.1  
229.5  
-30.1  
-
204.5  
Profit/loss for the year  
9.3  
58.5  
18.2  
-
86.0  
Adjusted for:  
Adjusted for:  
Profit/(loss) from sale of vessels etc.  
-7.7  
-
-
-
-7.7  
Profit/(loss) from sale of vessels etc.  
18.2  
-
-
-
18.2  
Profit/(loss) from sale of vessels, etc.  
in joint venture  
Profit (loss) from sale of vessels, etc.  
in joint venture  
0.9  
-
-
-
0.9  
1.5  
-
-
-
1.5  
Adjusted Results for the year  
-1.7  
229.5  
-30.1  
-
197.7  
Adjusted Results for the year  
29.0  
58.5  
18.2  
-
105.7  
* Included in the item “Vessel operating costs” in the income statement.  
* Included in the item “Vessel operating costs” in the income statement  
Financial comments  
The amounts of revenue stated in the above tables for both current financial year and the comparable financial year include the agreed time charter rates earned during the lease. The lease and service components are recognised  
as revenue under the same pattern of transfer to the customers. Separate disclosure of the lease components and the service income components have not been provided as it is impracticable to establish this disclosure.  
NORDEN has no single customer with whom the external revenue exceeds 10% of total revenue.  
All deferred revenue as of 31 December 2020 has been recognised as revenue in 2021.  
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—
—
ANNUAL REPORT 2021 NORDEN  
82  
FINANCIAL STATEMENTS  
GROUP  
 
NOTES TO THE FINANCIAL STATEMENTS  
2.2 Expenses by nature  
2.3 Staff costs and remuneration  
Amount in USD million  
2021  
2020  
Amount in USD million  
2021  
2020  
Vessel operating costs  
Overhead and administration costs  
Total  
2,908.9  
117.4  
2,170.9  
93.1  
Onshore employees – the amount is included  
in “Overhead and administration costs”:  
Wages and salaries  
91.2  
2.8  
67.8  
3.0  
3,026.3  
2,264.0  
Pensions – defined contribution plans  
Other social security costs  
1.9  
1.4  
These costs can be split by nature:  
Voyage costs excluding bunker oil  
Bunker oil  
Share-based payment, cf. note 5.3  
1.1  
0.9  
609.6  
659.0  
205.9  
1,361.1  
73.3  
532.2  
557.9  
165.9  
839.4  
75.5  
97.0  
73.1  
Expenses related to the service component of right-of-use assets  
Expenses related to short-term leases  
Operating costs owned vessels  
Other external costs  
Average number of onshore employees  
376  
391  
Since 2020, all technical management services are handled by external ship managers. In 2021, they on  
average employed 674 (838) seafarers onboard NORDEN vessels. The amount is included in “Vessel operating  
costs”.  
20.4  
20.0  
Staff costs, cf. note 2.3  
97.0  
73.1  
Total  
3,026.3  
2,264.0  
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—
—
GROUP 83  
NORDEN  
ANNUAL REPORT 2021  
FINANCIAL STATEMENTS  
 
NOTES TO THE FINANCIAL STATEMENTS  
2.3 Staff costs and remuneration – continued  
2.4 Depreciation  
2021  
Parent  
Company  
Executive  
2020  
Parent  
Company  
Executive  
Amount in USD million  
2021  
2020  
Parent  
Company  
Board of  
Parent  
Company  
Board of  
Vessels, cf. note 3.1  
42.6  
252.1  
0.8  
47.7  
153.3  
0.9  
Right-of-use assets, cf. note 4.7  
Property and equipment, cf. note 3.1  
Total  
Amount in USD million  
Wages and salaries  
Directors Management  
Total  
6.0  
-
Directors Management  
Total  
5.0  
-
295.5  
201.9  
0.8  
-
5.2  
-
0.8  
-
4.2  
-
Other social  
security costs  
2.5 Financial income and expenses  
Share-based  
payment  
Amount in USD million  
2021  
2020  
-
0.5  
0.5  
-
0.3  
0.3  
Total  
0.8  
5.7  
6.5  
0.8  
4.5  
5.3  
Interest income  
0.3  
-
1.0  
0.5  
2.0  
3.5  
Fair value adjustment, cross currency swaps  
Exchange rate adjustments  
Total financial income  
Financial comments  
-
The Danish Financial Statements Act requires listed companies to disclose information in relation to change-  
of-control provisions. Within four weeks after a change of the control of the Company, the CEO and CFO may  
terminate their employment, and they will be entitled to 12 months remuneration.  
0.3  
Interest costs  
11.1  
0.1  
10.4  
-
Fair value adjustment, cross currency swaps  
Interest expenses on lease liabilities  
Total financial expenses  
Refer to note 5.3 ”Share-based payment” for further information.  
Bonus are included in "Wages and salaries".  
23.9  
35.1  
19.8  
30.2  
Refer to “Remuneration report 2021“ published on NORDEN’s website: www.norden.com/investor/govern-  
ance/remuneration for further details.  
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—
—
ANNUAL REPORT 2021 NORDEN  
84  
FINANCIAL STATEMENTS  
GROUP  
 
NOTES TO THE FINANCIAL STATEMENTS  
2.6 Taxation  
Amount in USD million  
2021  
2020  
Accounting policies  
Tax on the profit/loss for the year  
Adjustment of tax regarding previous years  
Total  
6.7  
-0.5  
6.2  
7.6  
-0.9  
6.7  
The Group’s current tax consists of tax payable according to the regulations of the Danish Tonnage Tax Act  
for shipping activities and according to general tax regulations for net financial income and other activities.  
Other activities comprise letting of the Group’s domicile and commercial management income. Shipping  
activities in Denmark are taxed on the basis of the net tonnage (vessels), which the Danish group entities in  
question have at their disposal.  
Tax on profit/loss for the year is broken down as follows:  
Profit/loss before tax  
210.7  
-206.5  
4.2  
92.7  
-81.2  
11.5  
of which results from Danish tonnage activity  
Profit/loss from non-tonnage activity  
Based on the planned use of vessels and recovery of reversed depreciation, respectively, the Danish  
tonnage tax regime does not result in a liability, hence, it does not result in any deferred tax in the balance  
sheet. The liability is merely a contingent liability. Other activities of the Group and the Parent Company are  
not subject to deferred tax either.  
Calculated tax of this, 22.0% (22.0%)  
Tax effect from:  
0.9  
2.5  
- Tonnage tax  
6.0  
-7.3  
-0.5  
7.1  
6.7  
-6.3  
-0.9  
4.7  
Accounting estimates  
- Higher/lower tax rate in subsidiaries  
- Adjustments of tax regarding previous years  
- Non-tax deductible interests ect.  
Total  
Based on the Group’s business plans, the Danish group entities have entered the Danish tonnage tax  
regime for a binding 10-year period from 2021.  
6.2  
6.7  
Contingent tax, disclosed under this note, may become a current tax if the tonnage tax regime is dissolved,  
if the Danish group entities' in question net investments in vessels decrease significantly or if the Danish  
group entities in question are liquidated. The Group’s business plans therefore constitute an important  
basis for this estimate.  
Contingent tax under the tonnage tax scheme  
16.3  
22%  
16.3  
22%  
Contingent tax is calculated equalling the tax rate for 2021 and going forward  
In addition, the tax rules are complicated when a company has activities that are partly covered by the ton-  
nage tax regime and partly by corporate taxation. In calculation of the taxable income, estimates are made  
which in a later assessment by the Danish tax authorities may result in corrections to previous estimates of  
recognised tax assets and liabilities in the balance sheet.  
—
—
—
GROUP 85  
NORDEN  
ANNUAL REPORT 2021  
FINANCIAL STATEMENTS  
 
NOTES TO THE FINANCIAL STATEMENTS  
3.1 Tangible assets  
Section 3  
Invested capital and working capital  
3.1 Tangible assets  
86  
91  
92  
92  
93  
Accounting policies  
Tangible assets are measured at cost less accumulated depreciation and impairment losses. Cost com-  
prises the acquisition price and costs directly related to the acquisition up until the time when the asset is  
ready for use. Borrowing costs concerning either specific or general borrowing directly related to assets  
with an extended construction period are included in cost over the period of construction.  
3.2 Investments in joint ventures  
3.3 Freight receivables  
3.4 Vessels held for sale and related liabilities  
3.5 Joint operations  
Depreciation is based on the straight-line method over the estimated useful lives of the assets. Deprecia-  
tions are calculated based on the following estimated useful lives (unchanged comparing to last year):  
Buildings  
Vessels  
50  
25  
Fixtures, fittings and equipment  
3-10  
Land is not depreciated.  
Useful lives of the assets and residual values are reviewed and adjusted at each balance sheet date, if  
appropriate.  
Vessels  
Dry docking costs are recognised in the carrying amount of vessels when incurred and depreciated over  
the period until the next dry docking.  
The scrap value of vessels is determined based on the market price per lightweight tonne for scrapping of  
the vessel.  
The depreciation period for secondhand vessels is determined on the basis of the condition and age of  
the vessels at the time of acquisition, but the depreciation period does not exceed 25 years from delivery  
from the shipyard.  
Prepayments on newbuildings are recognised in assets as vessels under construction as payments are  
made. At the delivery of the vessel, it is reclassified to the item “Vessels”.  
Profit/loss from sale of vessels is stated as the difference between the sales price less selling costs and the  
carrying amount of the vessel in question at the time of delivery. Furthermore, impairment of assets held  
for sale and any gains and losses upon repayment of related loans are included.  
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—
—
ANNUAL REPORT 2021 NORDEN  
86  
FINANCIAL STATEMENTS  
GROUP  
 
NOTES TO THE FINANCIAL STATEMENTS  
3.1 Tangible assets – continued  
The indications assessed by Management comprise, among other things, financial performance, vessel  
values, newbuilding prices and development in freight and time charter rates.  
Impairment test  
Management monitors continuously, on a portfolio basis, the carrying value of tangible non-current assets  
in order to determine, whether there are any indications of impairment in excess of the amount provided  
When considering vessel values, Management obtains two independent broker valuations of vessels and  
newbuildings. Assessment of development in newbuilding prices is based on market data such as known  
transactions, prices of potential newbuildings and analysis reports from brokers.  
for by normal depreciations and whether previous impairments should be reversed.  
An impairment test is conducted if there is an indication that the carrying amount of an asset or a cash-gen-  
erating unit exceeds the expected future cash flows from the asset. If the carrying amount exceeds the  
recoverable amount, the asset is written down to the lower recoverable amount. The recoverable amount  
of the asset is determined as the higher of the net selling price and the value-in-use. If a recoverable  
amount for the individual assets cannot be determined, the smallest group of assets for which it is possible  
to determine the recoverable amount (cash-generating unit) is analysed for impairment.  
Management’s assessment of future freight and time charter rates is uncertain and includes considerable  
judgements. Short-term rates are based on publicly available market data of FFAs covering a future period  
of one to two years. Mid- and long-term rates are based on Management’s judgements.  
Management considers all these indicators when assessing whether an impairment test has to be per-  
formed.  
Management’s assessment of indication of impairment on owned vessels, leased vessels recognised in the  
balance sheet as right-of-use assets and prepayments on newbuildings is based on the cash-generating  
units (CGUs) in which vessels, etc. are included; Dry Cargo and Tankers.  
Accounting estimates  
If indications exist, Management assesses through an impairment test the recoverability of the carrying  
amount of tangible assets and other related assets related to the relevant CGU (see above under Account-  
ing policies).  
Assessment of indication of impairment is made concurrently on a portfolio basis.  
Reversal of previous impairments is only recognised if there has been a change in the assumptions used to  
determine the recoverable amount since the last impairment test was carried out.  
Recoverable amount is generally determined based on a calculation of the higher of the fair value less  
costs to sell and the value-in-use.  
Accounting judgements  
As the CGUs contain both owned vessels and capitalised charter contracts (right-of-use assets) the fair  
value less costs to sell of the CGU cannot be determined solely based on the broker valuations obtained  
but requires valuations similar to those in performing a value-in-use calculation.  
Significant accounting judgement includes the definition of CGUs. Among other things, the judgement  
effects on which basis an impairment test is performed. The CGUs are determined as Dry Cargo and  
Tankers. When determining the CGUs, the respective dry cargo and tanker vessels part of the segment and  
department Asset Management have been included in the respective CGU; Dry Cargo or Tankers.  
The principal risk when determining the value-in-use is in relation to Management’s assessment of the  
timing and value of future cash flows including Management’s estimates of long-term freight and T/C rates  
as well as determination of a discount rate (WACC). The short- and long-term economic consequences  
of COVID-19 are still unknown and could cause a shift in freight rates and other significant assumptions  
impacting the impairment assessment.  
Management has considered the degree of interdependency between Asset Management and Dry Oper-  
ator/Tanker Operator in respect of taking decisions related to the vessel capacity and has concluded that  
the interdependency is of such extent that the cash inflows are not largely independent from each other  
and that, consequently, the three operating segments form two CGUs. When determining that the CGU  
is not at a lower level than the total Dry Cargo and Tanker fleets, respectively, Management has attached  
importance to the fact that both fleets are managed on a portfolio level.  
Other significant accounting estimates when determining the carrying value of tangible assets include i.a.  
useful lives and residual values.  
Furthermore, assessing whether any indication of impairment exists is depending on complex and subjec-  
tive judgements by Management. Only if any indication of impairment, or reversal of previously recognised  
impairment, exists, an impairment test is performed within a CGU.  
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—
—
GROUP 87  
NORDEN  
ANNUAL REPORT 2021  
FINANCIAL STATEMENTS  
 
NOTES TO THE FINANCIAL STATEMENTS  
3.1 Tangible assets – continued  
Dry Cargo  
As was the case at end of 2020, an impairment test was performed at the end of 2021 in order to assess  
potential reversal of previously recognised impairment.  
The Dry Cargo CGU is defined as NORDEN’s Dry Cargo fleet including chartered vessels and agreed  
coverage (revenue) in the form of Contracts of Affreightment (COAs), vessels chartered out and Forward  
Freight Agreements (FFAs). A discount rate (WACC) of 7.25% was applied (2020: 7.25%).  
The value-in-use calculation showed that the long-term values of the Dry Cargo fleet supported the  
carrying amounts. Accordingly, there was no need for impairment or reversal of previously recognised  
impairments of the Group’s Dry Cargo vessels, right-of-use assets and newbuildings.  
Due to the large number of open vessel days in the Dry Cargo CGU the value-in-use calculation was  
particularly sensitive to even minor fluctuations in among others freight rates and WACC. As an example  
of these sensitivities, a reduction of the assumed freight rates of USD 1,000 would affect the value-in-use  
negatively by approximately USD 85 million (2020: USD 75 million). An increase in WACC of 1 percentage  
point would similarly affect the value-in-use negatively by approximately USD 30 million (2020: USD 40  
million).  
Tankers  
Similar to the end of 2020, an impairment test was performed at the end of 2021 in order to assess the  
need for impairment.  
The Tankers CGU is defined as NORDEN’s Tanker fleet including chartered vessels and agreed coverage  
(revenue) in the form of Contracts of Affreightment (COAs), vessels chartered out and Forward Freight  
Agreements (FFAs). A WACC of 7.25% was used for the calculation (2020: 7.25%).  
The value-in-use calculation showed that the long-term values of the Tanker fleet support the carrying  
amounts. Accordingly, Management assessed that there is no need for impairment, or reversal of previous-  
ly recognised impairments, of the Group’s Tanker vessels and right-of-use assets.  
Due to the large number of open vessel days in the Tankers CGU the value-in-use calculation was particu-  
larly sensitive to even minor fluctuations in freight rates and WACC. As an example of these sensitivities, a  
reduction of the assumed freight rates of USD 1,000 would affect the value-in-use negatively by approxi-  
mately USD 80 million (2020: USD 85 million). An increase in WACC of 1 percentage point would similarly  
affect the value-in-use negatively by approximately USD 30 million (2020: USD 35 million).  
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—
—
ANNUAL REPORT 2021 NORDEN  
88  
FINANCIAL STATEMENTS  
GROUP  
 
NOTES TO THE FINANCIAL STATEMENTS  
3.1 Tangible assets – continued  
Prepayments  
Property and on vessels and  
equipment newbuildings  
Prepayments  
Property and on vessels and  
equipment newbuildings  
Amount in USD million  
Vessels  
Total  
Amount in USD million  
Vessels  
Total  
2020  
2021  
Cost at 1 January  
Additions for the year  
Disposals for the year  
Transferred during the year  
1,123.8  
26.6  
54.6  
0.5  
-0.2  
-
16.1  
71.9  
-
1,194.5  
99.0  
-3.4  
-
Cost at 1 January  
Additions for the year  
Disposals for the year  
Transferred during the year  
1,079.7  
104.1  
-1.3  
54.9  
15.5  
155.8  
-
1,150.1  
261.8  
-1.3  
1.9  
-3.2  
-
-
72.4  
-72.4  
76.6  
-76.6  
-
Transferred during the year to  
assets held for sale  
Transferred during the year  
to assets held for sale  
-139.9  
-
-
-139.9  
-307.8  
951.3  
-
-83.4  
11.3  
-391.2  
Transferred during the year  
to other items  
Cost at 31 December  
56.8  
1,019.4  
-
-
-0.1  
-0.1  
Cost at 31 December  
1,079.7  
54.9  
15.5  
1,150.1  
Depreciation at 1 January  
Depreciation for the year  
-249.8  
-42.6  
-6.3  
-0.8  
-
-
-256.1  
-43.4  
Depreciation at 1 January  
Depreciation for the year  
-244.7  
-47.7  
-5.6  
-0.9  
-
-
-250.3  
-48.6  
Depreciations related  
to derecognised assets  
1.3  
-
-
1.3  
Depreciations related  
to derecognised assets  
Transferred during the year to  
assets held for sale  
3.2  
0.2  
-
3.4  
81.3  
-
-
-
81.3  
Transferred during the year to  
assets held for sale  
Depreciation at 31 December  
-209.8  
-7.1  
-216.9  
39.4  
-
-
-
39.4  
Depreciation at 31 December  
-249.8  
-6.3  
-256.1  
Impairment losses at 1 January  
Impairment losses for the year  
-62.5  
-14.4  
-
-
-
-
-62.5  
-14.4  
Impairment losses at 1 January  
-75.7  
-
-
-75.7  
Transferred during the year to  
tangible assets held for sale  
Transferred during the year to  
tangible assets held for sale  
38.4  
-
-
-
-
38.4  
13.2  
-
-
-
-
13.2  
Impairment losses at 31 December  
-38.5  
-38.5  
Impairment losses at 31 December  
-62.5  
-62.5  
Carrying amount at 31 December  
703.0  
49.7  
11.3  
764.0  
Carrying amount at 31 December  
767.4  
48.6  
15.5  
831.5  
Two vessels have been sold to third parties with repurchase options. NORDEN entered into lease contracts at  
the same time. These transactions have been treated as financing transactions and the received proceeds are  
part of the loans.  
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—
—
GROUP 89  
NORDEN  
ANNUAL REPORT 2021  
FINANCIAL STATEMENTS  
 
NOTES TO THE FINANCIAL STATEMENTS  
3.1 Tangible assets – continued  
Capital commitments  
The Group has entered into agreements for future delivery of vessels. The remaining contract amount is pay-  
able as follows:  
Amount in USD million  
2021  
2020  
Within 1 year  
120.0  
45.0  
95.3  
-
Between 2 and 3 years  
More than 3 years  
Total  
-
-
120.0  
140.3  
Future payments to NORDEN from sold vessels: USD 220 million.  
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—
—
ANNUAL REPORT 2021 NORDEN  
90  
FINANCIAL STATEMENTS  
GROUP  
 
NOTES TO THE FINANCIAL STATEMENTS  
3.2 Investments in joint ventures  
Investments comprise:  
2021  
2020  
2021  
2020  
NORDEN engages in jointly controlled arrangements which include joint ventures and joint operations. In joint  
ventures, the parties do not have direct share in assets and liabilities, etc., but solely a share in the net profit or  
loss and equity. On the other hand, joint operations provide the parties with direct rights to the assets and di-  
rect obligations for the liabilities. Each joint operator recognises its part of assets, liabilities, income and costs.  
NORDEN's share of  
Ownership result in joint ventures  
Carrying amount  
Nord Summit Pte. Ltd., Singapore*  
50%  
50%  
50%  
-1.4  
2.7  
-
-0.5  
-2.6  
-
10.0  
11.4  
For further disclosure related to joint venture see note 3.5.  
Polar Navigation Pte. Ltd., Singapore  
Norden Alrayn Maritime Co. Ltd, Saudi Arabia  
-
-
-
-
Accounting policies  
NORDEN SYNERGY Ship Management A/S,  
Denmark  
In the Group’s income statement, the Group’s share of the joint ventures’ profit/loss after tax is included in  
the item “Share of profit/loss of joint ventures”.  
50%  
-0.2  
0.1  
-
0.1  
Total  
1.1  
-3.0  
10.0  
11.5  
* Loss from sale of vessels USD 0.9 million have been realised in 2021.  
Amount in USD million  
Enterprises, which are contractually operated jointly with one or more other enterprises and which are  
thus jointly controlled, are recognised in the Consolidated Financial Statements according to the equity  
method.  
2021  
2020  
Key figures (100%)  
Revenue and other income  
Costs  
In the Group’s statement of financial position, the Group’s share of the net asset value of joint ventures is  
thus included in the item “Investments in joint ventures”, calculated on the basis of the Group’s accounting  
policies and after deduction or addition of the Group’s share of any unrealised intra-group gains or losses.  
26.0  
-23.1  
-0.6  
2.3  
40.3  
-41.7  
-4.6  
Impairment  
Joint ventures with negative net asset values are valued at USD 0 million. If the Group has a legal or  
constructive obligation to cover the enterprises’ negative balance, such obligation is recognised by writing  
down any receivable from the joint venture or under provisions.  
Total results  
-6.0  
Share of results of NORDEN  
1.1  
-3.0  
Non-current assets  
10.1  
21.5  
7.1  
57.9  
16.1  
6.4  
Accounting judgements  
Current assets  
Assessment of control in shared ownership  
- hereof cash and cash equivalents  
Non-current liabilities, debt  
Current liabilities  
The classification of activities and enterprises which are in part jointly owned with other companies and  
thus how these activities and enterprises are treated in the Consolidated Financial Statements is to a cer-  
tain extent based on judgements of formal and actual conditions.  
-11.0  
-2.1  
18.5  
9.2  
-45.0  
-17.7  
11.3  
5.7  
Total carrying amount  
In the assessment of joint control, an analysis has been made as to which decisions require unanimity  
and whether these relate to relevant activities, which are activities that significantly affect the return of the  
arrangement. It is assessed that joint control by default exists when business plans and budgets must be  
adopted unanimously.  
Share of carrying amount of NORDEN  
Transferred to other payables due to negative equity  
Recognised carrying amount of NORDEN  
0.8  
5.8  
10.0  
11.5  
Financial comments  
No significant restrictions apply to distributions from joint ventures.  
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—
—
GROUP 91  
NORDEN  
ANNUAL REPORT 2021  
FINANCIAL STATEMENTS  
 
NOTES TO THE FINANCIAL STATEMENTS  
3.3 Freight receivables  
3.4 Vessels held for sale and related liabilities  
Accounting policies  
Accounting policies  
Vessels held for sale comprise of vessels for which a binding sales agreement has been entered into and  
the vessel will be transferred to the buyer within 12 months of the reporting date.  
Receivables are measured at amortised cost less allowances for impairment losses. Impairment losses for  
trade receivables are determined as the expected loss over the life of the receivables.  
Newbuilding vessels and prepayments on vessels held for sale are measured at the lower of carrying  
amount before classification as held for sale and fair value less selling costs and are recognised under  
current assets.  
Accounting estimates  
Allowances of trade receivables are determined using the lifetime expected credit loss which include  
factors such as internal rating, historical information about payment patterns, collateral received as well as  
prevailing economic conditions. Estimates made are updated if the debtor’s ability to pay changes.  
Depreciation is not provided for vessels held for sale.  
It is estimated that the allowances made are sufficient to cover bad debt.  
Assets and directly related liabilities in relation to vessels held for sale are recognised in separate items in  
the balance sheet.  
Gains and losses are included in the income statement in the item "Profit/(loss) from sale of vessels, etc.”.  
Gains are recognised on delivery and losses when they are classified as "held for sale”.  
Amount in USD million  
2021  
2020  
Receivables from invoiced voyages  
Receivables from voyages commenced at the balance sheet date  
Freight receivables  
111.2  
152.9  
264.1  
-8.4  
99.6  
46.9  
Vessels held for sale  
146.5  
-2.0  
Amount in USD million  
2021  
2020  
Writedown regarding demurrage, claims, etc.  
Freight receivables, net  
255.7  
255.7  
144.5  
144.5  
Carrying amount at 1 January  
17.1  
188.1  
83.4  
-
75.0  
-
Carrying amount  
Additions for the year from vessels  
Additions from prepayments on vessels and newbuildings  
Disposals for the year  
Freight receivables are predominately denominated in USD as other currencies account for less than 1% in  
both 2021 and 2020.  
-137.8  
150.8  
-57.9  
17.1  
Carrying amount at 31 December  
Financial comments  
Liabilities relating to vessels held for sale  
Prepayments received on sold vessels and newbuildings  
As at 31 December  
Regarding freight receivables, the Group usually has the opportunity to use the cargo as security.  
Refer to note 4.1 "Financial risk management" and note 4.3 "Fair value hierarchy" for further information.  
9.4  
-
9.4  
-
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—
—
ANNUAL REPORT 2021 NORDEN  
92  
FINANCIAL STATEMENTS  
GROUP  
 
NOTES TO THE FINANCIAL STATEMENTS  
3.5 Joint operations  
Accounting judgements  
NORDEN engages in jointly controlled arrangements which include joint ventures and joint operations. In joint  
ventures, the parties do not have direct share in assets and liabilities, etc., but solely a share in the net profit or  
loss and equity. On the other hand, joint operations provide the parties with direct rights to the assets and di-  
rect obligations for the liabilities. Each joint operator recognises its part of assets, liabilities, income and costs.  
Assessment of control in shared ownership - pool arrangements  
The classification of activities and enterprises which are in part jointly owned with other companies and  
thus how these activities and enterprises are treated in the Consolidated Financial Statements is to a cer-  
tain extent based on judgements of formal and actual conditions.  
NORDEN’s shipping activities are to some extent conducted through pool arrangements. In pools, revenue  
and related costs are recognised according to criteria corresponding to the pool agreements.  
In connection with the assessment of control, an analysis of the operator role in NORDEN’s agreements on  
pool arrangements has been made. The operator is responsible for the daily management of activities car-  
ried out within a jointly established framework. Since the operators are not exposed to, and are not entitled  
to, a return apart from the participating share and the fact that they can be replaced upon agreement, the  
operators are considered to be agents as defined in IFRS 10.  
For vessels operating in pools, the pool’s profit is allocated to the pool participants on the basis of an agreed  
principle. The agreed principle may differ from pool to pool. Generally, the pool profit is allocated to the par-  
ticipants according to the number of days the vessels have been at the pool’s disposal, but weighted for the  
capacity and characteristics of the individual vessels.  
In the assessment of joint control, an analysis has been made as to which decisions require unanimity and  
whether these relate to relevant activities, which are activities that significantly affect the return of the pool  
arrangement. It is assessed that joint control by default exists when business plans and budgets must be  
adopted unanimously.  
NORDEN operates a few pools. As pool operator, NORDEN receives management income to cover its costs  
in this respect. Management income is calculated as a fixed percentage of charter/freight income for each in-  
dividual agreement, however, with a minimum amount. The management income is recognised in the income  
statement in the item “Other operating income” as the underlying charter/freight agreement is recognised.  
For NORDEN’s pool arrangements, unanimity is required on decisions relating to relevant activities. It has  
also been established that the pool partners have rights and obligations directly and unlimited with regard  
to the assets and liabilities of the arrangements, and as the pool arrangements have not been structured  
into separate legal units, these are treated and classified as joint operations.  
Joint operations comprise the following pools:  
• Norient – Handy Pool  
• Norient – MR Pool  
• Norient – NIP Pool  
• Norient – AEV Pool  
• Norient – N51 Pool  
• Norient – H15 Pool  
• Norient – S01 Pool  
Liabilities  
The following is an overview of NORDEN’s total liabilities and coverage in respect of jointly controlled  
operations in the event that other pool partners are unable to meet their obligations.  
Accounting policies  
2021  
24.6  
2020  
11.1  
Pool arrangements are considered joint operations. Accordingly for vessels operating in pools, the propor-  
tionate share of income and costs is presented as gross amounts in the income statement. For example,  
the share of revenue in pools is recognised in “Revenue”, while the proportionate share of costs in pools,  
such as direct voyage costs (e.g. bunker oil, commissions and port charges) and charter hire for chartered  
pool tonnage, is recognised in “Vessel operating costs”. Similarly, NORDEN’s share of assets and liabilities  
in pools is recognised, and NORDEN’s share of other liabilities, etc. is included in the notes in the Financial  
Statements.  
Share of unrecognised liabilities for which the partners are  
jointly and severally liable  
—
—
—
GROUP 93  
NORDEN  
ANNUAL REPORT 2021  
FINANCIAL STATEMENTS  
 
NOTES TO THE FINANCIAL STATEMENTS  
4.1 Financial risk management  
Section 4  
The Group is exposed to a variety of risks from its  
operations in shipping markets.  
Customer credit risk exposure  
Capital structure and risks  
The total Group credit exposure was USD 1,767  
million (USD 912 million) at the end of 2021 with USD  
1,684 million (USD 759 million) in Dry Cargo and USD  
83 million (USD 153 million) in Tankers.  
4.1 Financial risk management  
4.2 Derivatives  
94  
98  
The Board of Directors is advised by the Risk  
Committee in matters related to the Management of  
these risks, where the Risk Committee is responsible  
for ensuring development and implementation of  
robust risk frameworks that appropriately identify  
and measure risks.  
4.3 Fair value hierarchy  
4.4 Share capital and dividends  
4.5 Earnings per share  
4.6 Loans and bonds  
101  
102  
103  
103  
105  
108  
While concentration risk is mitigated by distributing  
exposure between many counterparties, it is still a  
few counterparties that account for a large part of the  
exposure. In Dry Cargo, the exposure involves 285  
(252) counterparties, where the 5 largest counterpar-  
ties accounted for 30% (43%) of the covered revenue  
in the segment. In Tankers, the exposure involves 59  
(58) counterparties, where the 5 largest accounted for  
68% (71%) of the covered revenue in the segment. It  
is assessed that the main part of the counterparties  
referred to above are solid, and the Group stays  
updated on the performance and activities of these  
companies on a regular basis.  
4.7 Leases - lessee  
Based on advice from the Risk Committee, the Board  
of Directors reviews and agrees on policies for man-  
aging each of the risks, which are described below.  
4.8 Leases - lessor and COAs  
For further information, see the "Risk Management"  
section on pages 19-21 in the Management's  
Review.  
Credit risks  
The Group is exposed to credit risk related to trade  
receivables from its counterparties and agreed future  
COAs, its prepayments to shipyards and ship owners,  
its cash deposits with financial institutions and poten-  
tial initial margins and intraday volatility market values  
in relation to derivative instruments.  
Credit risks related to trade receivables differ  
somewhat for timecharters and voyage charters. For  
timecharters, revenues are in general paid in advance  
for next 2 to 4 weeks, while for voyage charters, sub-  
stantially, all revenue is paid before discharge in Dry  
Cargo and within 2-5 days after discharge in Tankers.  
Credit risk is reduced by systematic credit assessment  
of counterparties and regular monitoring of their  
creditworthiness. For this purpose, own analyses are  
applied based on external credit rating agencies and  
publicly available information. Each analysis results  
in an internal rating, which is subsequently used for  
determining the allowed scope of the commitment.  
Due to the nature of the counterparties as described  
above and the systematic and regular monitoring  
of their creditworthiness, the customer credit risk is  
determined to be limited.  
Prepayments  
The Group has credit risk related to prepayments to  
shipyards. To mitigate this risk, the Group generally  
obtains a guarantee from a financial institution.  
The internal ratings are based both on a financial and  
a non-financial assessment of the counterparty profile,  
where each category ranges between A to D, with A  
being the highest achievable score.  
Cash deposits  
The Group liquidity is strictly placed with financial  
institutions that are either classified as a systemic  
—
—
—
ANNUAL REPORT 2021 NORDEN  
94  
FINANCIAL STATEMENTS  
GROUP  
 
NOTES TO THE FINANCIAL STATEMENTS  
4.1 Financial risk management – continued  
important financial institution (SIFI) or have a Moody's  
rating of at least A-.  
risk as changes in market value of the financial con-  
tracts must be backed by collateral on a daily basis.  
Interest rate risks  
Derivatives  
Most of the Group’s loan obligations are paying  
interest on the basis of 1, 3 or 6 months USD libor.  
The Group actively monitors and manages this risk  
using Cash flow at Risk to ensure sufficient available  
liquidity to handle severe stress of current market  
conditions.  
NORDEN uses derivatives instruments to hedge  
freight risk, bunker risk and currency risk. The credit  
risk related to these instruments is deemed to be  
small, since cleared and OTC contracts are subject to  
daily margin payments, with the only difference that  
OTC contracts have a threshold before daily margin  
payments are made.  
Most of the Group’s considerable cash balance is  
placed on short term bank deposits thus netting out  
the loan’s libor exposure. The Group’s net interest  
rate exposure does not have a significant effect on  
the results of the Group.  
The terms to maturity of financial assets and liabili-  
ties are disclosed by category and class distributed  
on maturity periods. All interest payments and  
repayments of financial assets and liabilities are  
based on contractual agreements. Interest payments  
on floating-rate instruments are determined based  
on a 0-coupon interest structure adjusted with the  
Group's interest margin. All cash flows are undis-  
counted.  
At year-end a total positive market value of USD 180  
million (2020: USD 42 million) and a total negative  
market value of USD 222 million (2020: USD 34 mil-  
lion) have been cleared through NORDEN's margin  
account with Skandinaviska Enskild Banken (SEB).  
Currency risks  
The Group’s functional currency is USD. Since  
administrative expenses and dividends are paid in  
other currencies - mainly DKK - there is a currency  
risk in this connection. The Group hedges expected  
administrative expenses payable in DKK for a period  
of 6-24 months. In connection with newbuilding  
payments, typically in JPY, CNY or KRW, there may  
also be a currency risk. This is hedged by forward  
contracts in connection with newbuilding orders. At  
the end of 2021, all newbuilding payments were,  
however, in USD. The strike price in some of the  
Group’s purchase options is determined in JPY, and  
it is the Group’s policy only to hedge these if the  
option is exercised and only upon exercise.  
Freight rate risks  
Capital management risks  
Purchasing and chartering vessels and cargo con-  
tracts imply a risk as the Group assumes financial  
liability in expectation of generating earnings which  
are dependent on the freight market.  
The Group’s formal external capital requirement  
is limited to the contributed capital of the Parent  
Company and the subsidiaries, which is significantly  
lower than the Group’s equity.  
The Group uses FFAs to hedge cash flow risk to the  
extent Management finds it attractive, cf. note 4.2  
"Derivatives".  
The Group’s equity ratio was 40.5% (49.5%) at the  
end of 2021. This significant equity ratio should be  
considered relative to the Group’s future payment  
obligations in the form of operating lease liabilities  
(T/C contracts) and payments for newbuildings not  
recognised in the statement of financial position.  
Bunker price risks  
In connection with the conclusion of a COA in GBP,  
cross currency swaps were simultaneously entered  
into to fix expected freight income in USD.  
A large part of the variable revenues and expenses  
are related to bunker prices, which impacts the  
Group result. The Group uses bunker swaps to  
hedge the bunker price risk to the extent possible,  
cf. note 4.2 "Derivatives".  
Liquidity risks  
The Group maintains sufficient liquidity to handle  
short-term fluctuations in cash flows while at the  
same time complying with bank covenants.  
Note that for vessels that are scrubber-fitted, the  
Group has a bunker price risk towards the spread  
between high sulphur fuel oil and a combination of  
very low sulphur fuel oil and gas oil, respectively. As  
the available hedging tools are not very liquid, only  
parts of this risk is hedged.  
Financial contracts, including but not limited to bun-  
ker swaps and FFAs, are mainly traded cleared. The  
contracts can also be traded OTC, but in this case  
always with an ISDA in place. This implies a liquidity  
—
—
—
GROUP 95  
NORDEN  
ANNUAL REPORT 2021  
FINANCIAL STATEMENTS  
 
NOTES TO THE FINANCIAL STATEMENTS  
4.1 Financial risk management – continued  
Overview of financial risks  
Amount in USD  
Credit  
Nominal value  
2021  
2020  
Comments on NORDEN’s policy  
Freight  
receivables  
264 million  
155 million  
The credit rating of counterparties is assessed on an ongoing basis. The Group reduc-  
es its credit risks through systematic credit assessment of counterparties and through  
regular monitoring of their creditworthiness.  
Bank deposits  
411 million  
95 million  
332 million  
16 million  
The Group’s liquidity is strictly placed with financial institutions with a Moody’s rating  
of at least A3 or classified as systemic important financial institutions (SIFI).  
Prepayments  
on vessels and  
newbuildings  
As a main rule, newbuilding contracts with shipyards are entered into with repayment  
guarantees issued by banks with good credit ratings.  
FFAs  
Sold net  
231 million  
Sold net  
99 million  
To limit credit risk, the Group’s FFAs are for the main parts entered through estab-  
lished clearing houses as these have daily margin settlement.  
Bunker swaps  
Bought net  
111 million  
Bought net  
105 million  
The Group's bunker swaps are in general traded cleared, but in some cases bunker  
swaps are traded OTC with financial institutions and with major, recognised business  
partners with good credit ratings. In the case of OTC trades the Group always includes  
an ISDA agreement ensuring continuous collateral above a specific threshold.  
Amount in USD  
Market  
Nominal value  
2021  
2020  
Sensitivity  
Comments on NORDEN’s policy  
Freight rate  
risks (FFAs)  
Sold net  
231 million  
Sold net  
99 million  
A 10% drop in freight rates at year-end would positively impact equity by USD 28  
million (positive impact of USD 10 million).  
The Group uses FFAs to hedge the cash flow risk related to highly probable freight  
expenses and revenues.  
Bunker price  
risks  
Bought net  
111 million  
Bought net  
105 million  
A 10% drop in bunker prices at year-end would negatively impact equity by USD 12  
million (negatively impact of USD 11 million).  
The Group uses bunker swaps to hedge the cash flow risk related to expenses of  
highly probable bunker purchases and revenues from the bunker price component of  
expected, highly probable, cargoes.  
Currency risks  
120 million  
51 million  
A 10% increase in the DKK and GBP exchange rates at year-end would have the  
following impact:  
The Group’s functional currency is USD.  
The Group uses Fx contracts to hedge future administrative expenses in DKK, as well as  
planned dividend payments as these are made in DKK. The Group has also entered an  
Fx contract to hedge expected freight income from a COA that was concluded in GBP.  
• DKK; net results positively by USD 0 million (USD 1 million) and equity USD 0 million  
(USD 1 million), and  
• GBP; net results positively by USD 0 million (USD 0 million) and equity by USD 3  
million (USD 4 million).  
Any exposures to other currencies than DKK currencies and GBP is insignificant.  
Interest rate  
risks  
-
-
Based on the Group’s liquidity and debt at year-end, a 1% increase in interest rates  
would, all other things being equal, impact earnings before tax positively by USD 1  
million (USD 0 million) and equity by USD 1 million (USD 0 million).  
Most of the Group’s loan obligations are paying interest on the basis of 1,3, and 6  
months USD libor. Most of the Group’s considerable cash balance is placed on short-  
term bank deposits thus netting out the loan’s libor exposure.  
—
—
—
ANNUAL REPORT 2021 NORDEN  
96  
FINANCIAL STATEMENTS  
GROUP  
 
NOTES TO THE FINANCIAL STATEMENTS  
4.1 Financial risk management – continued  
The table below summarises the maturity profile of the Group’s financial assets and liabilities based on  
contractual undiscounted payments:  
Maturities  
Maturities  
Within  
1 year  
Between More than  
Carrying  
amount  
Within  
1 year  
Between More than  
Carrying  
amount  
Amount in USD million  
2021  
1-3 years  
3 years  
Total  
Amount in USD million  
2020  
1-3 years  
3 years  
Total  
Derivative financial instruments  
Derivative financial instruments  
with a positive market value  
Derivative financial instruments  
Derivative financial instruments  
with a positive market value  
0.2  
-
-
-
-
-
-
-
0.2  
-
0.2  
-
-
-1.6  
1.4  
-
-
-
-
-1.6  
2.2  
-
-1.6  
2.2  
Derivative financial instruments  
with a negative market value  
Derivative financial instruments  
with a negative market value  
-
-
Cash flow hedging with a  
positive market value  
Cash flow hedging with a  
positive market value  
3.0  
-1.0  
0.3  
-
3.3  
-1.0  
3.3  
-1.0  
0.8  
-2.3  
Cash flow hedging with a  
negative market value  
Cash flow hedging with a  
negative market value  
-3.0  
-0.4  
-5.7  
-5.7  
Receivables measured at amortised cost  
Receivables from subleasing  
Cash and cash equivalents  
Freight receivables  
Receivables measured at amortised cost  
Receivables from subleasing  
Cash and cash equivalents  
Freight receivables  
24.5  
410.7  
255.7  
1.0  
9.2  
-
-
-
-
-
-
33.7  
410.7  
255.7  
1.0  
26.7  
410.7  
255.7  
1.0  
14.8  
331.6  
144.5  
9.5  
13.4  
-
-
-
-
-
-
28.2  
331.6  
144.5  
9.5  
26.7  
331.6  
144.5  
9.5  
-
-
-
-
-
Receivables from joint ventures  
Other receivables  
Receivables from joint ventures  
Other receivables  
-
-
15.6  
-
15.6  
15.6  
15.5  
15.5  
15.5  
Total  
707.5  
9.2  
716.7  
709.7  
Total  
515.9  
13.4  
529.3  
527.8  
Non-derivative financial liabilities  
Non-derivative financial liabilities  
Loans  
-48.7  
-98.6  
-236.1  
-383.4  
-342.0  
Loans  
-42.8  
-
-84.4  
-217.9  
-345.1  
-
-320.0  
-
Bonds  
Lease liabilities  
-
-100.0  
-299.8  
-
-100.0  
-781.5  
-98.7  
-607.7  
Bonds  
-
-175.0  
-
-
-49.2  
-
-383.5  
-98.2  
Lease liabilities  
Trade and other payables  
Total  
-158.8  
-180.7  
-382.3  
-383.0  
-180.7  
-908.8  
-355.4  
-180.7  
-856.1  
Trade and other payables  
-307.8  
-
-
-307.8  
-307.8  
Total  
-740.0  
-498.4  
-334.3  
-1,572.7  
-1,356.2  
-259.4  
-267.1  
Financial comments  
On the reporting date, floating-rate bank loans have an interest rate of 3-6 months’ LIBOR plus a margin of up to  
1.7%. Norden’s USD 100 million bond issue pays 3 months Libor plus a margin of 4.75%.  
Refer to note 4.3 “Fair value hierarchy” for further information.  
—
—
—
GROUP 97  
NORDEN  
ANNUAL REPORT 2021  
FINANCIAL STATEMENTS  
 
NOTES TO THE FINANCIAL STATEMENTS  
4.2 Derivatives  
Amount in USD million  
2021  
2020  
Accounting policies  
Fair value of cash flow hedges  
Fair value at 1 January  
The Group uses derivative financial instruments to hedge its bunker price risks, freight risk, and currency  
risks. Such derivative financial instruments are initially recognised at fair value on the date on which a  
derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as  
financial assets (other receivables) when the fair value is positive and as financial liabilities (other payables)  
when the fair value is negative.  
4.1  
-35.3  
-31.2  
8.9  
-4.8  
4.1  
Fair value adjustment at year-end, net  
Fair value at 31 December  
The fair value of cash flow hedges at 31 December can be specified as follows:  
At the inception of a hedge relationship, the Group formally designates and documents the hedge rela-  
tionship to which it wishes to apply hedge accounting and the risk management objective and strategy for  
undertaking the hedge.  
Bunker hedging  
5.5  
1.9  
10.3  
-1.1  
-5.2  
0.1  
- of which have been transferred to the income statement due to Inefficiency  
FFA hedging  
-39.0  
0.4  
Foreign currency risk hedging  
Fair value at 31 December  
Changes in the fair value of derivative financial instruments that are designated as fair value hedges of a  
recognised asset or a recognised liability are recognised in the income statement in the same item as any  
changes in the carrying amount of the hedged asset or hedged liability.  
-31.2  
4.1  
At year-end cash-flow hedges cleared trough margin accounts can be  
specified as follows:  
FFA hedging  
Changes in the fair value of derivative financial instruments designated as hedges of expected future  
transactions (cash flow hedge) are recognised in other comprehensive income and presented under “Re-  
serve for cash flow hedges” (equity). A break down of the movement into each type of cash flow hedge is  
presented below. Where the expected future transactions results in the acquisition of non-financial assets,  
any amounts deferred under equity are transferred from equity to the cost of the asset. Where expected  
future transaction results in income or expense, amount deferred under equity are transferred from equity  
to the income statement in the same item as the hedged transaction.  
-39.0  
5.1  
-5.5  
13.0  
0.1  
Bunker hedging  
Foreign currency risk hedging  
0.4  
At year-end cash-flow hedges not cleared trough margin accounts can be  
specified as follows:  
Bunker hedging  
2.3  
-3.5  
Changes in derivative financial instruments used for economic trading is recognised in the income state-  
ment in a separate item under other operating income.  
Fair value at 31 December  
-31.2  
4.1  
Bunker hedging  
The Group hedges cash flow risk from bunker prices to the extent possible. The risk strategy is built on portfo-  
lio hedging where Risk Management, which manages the bunker risk, is given a mandate in terms of Value at  
Risk.  
Bunker swaps are used to hedge expected bunker revenues and planned bunker expenses.  
The bunker swaps are designated as hedges of the forward bunker prices.  
Hedging of revenues  
Bunker swaps are sold to hedge revenue related to the bunker price component of expected, highly probable,  
cargoes up to a limit given by the bunkers onboard and the redelivery commitment related to time-chartered  
out vessels. The expected bunker sales arise from expected, highly probable, cargoes as the Group basis  
analysis of the freight market structure has concluded that bunkers is a separate and identifiable component  
of cargo freight prices.  
—
—
—
ANNUAL REPORT 2021 NORDEN  
98  
FINANCIAL STATEMENTS  
GROUP  
 
NOTES TO THE FINANCIAL STATEMENTS  
4.2 Derivatives – continued  
Amount in USD million  
2021  
2020  
Hedging of expenses  
Bunker swaps are purchased to hedge expenses related to planned, highly probable, bunker purchases. The  
planned bunker purchases are related to existing cargoes, where owners must cover the bunker expenses re-  
quired to carry the cargo from its load to discharge port, and the redelivery commitment related to time-char-  
tered in vessels, as charterers must redeliver the vessel with a bunker volume specified in the charterparty to  
owners. Bunker swaps are contracts that are priced against published Platts prices for the respective bunker  
product in given bunkering hub.  
Movements in the hedging reserve:  
Beginning of year  
9.2  
42.3  
29.4  
-73.5  
7.4  
-2.6  
-20.5  
-19.3  
51.6  
9.2  
Fair value adjustment for the year  
Transferred to revenue  
Transferred to operating costs  
End of year  
The Group has basis analysis of the bunker market structure concluded that Rotterdam and Singapore prices  
are separate and identifiable components of bunker prices in other ports. The Group, therefore, uses bunker  
swaps with price reference in Rotterdam to hedge bunker prices West of Suez, and in Singapore to hedge  
bunker prices East of Suez.  
Financial comments  
Freight hedging  
The Group uses FFAs to hedge cash flow risk from freight prices to the extent Management finds it attractive.  
The risk is managed by the Business Unit Leaders, based on Value at Risk limits defined by Management.  
The Group has implemented a rollover strategy, where it can enter bunker swaps that do not perfectly match  
the hedged risk immediately, but with the intention to replace this by a bunker swap of more similar properties  
over time. Due to this rollover strategy, the Group by definition applies a 1:1 hedge ratio and accepts minor  
hedge inefficiencies from timespreads and productspreads.  
The FFAs are designated as hedges of the forward freight rate.  
Hedging of revenue  
The total hedge inefficiency in 2021 is USD 1.3 million (2020: USD 4.7 million).  
The bunker hedging activities comprise the following contracts:  
FFAs are sold to hedge freight revenue of expected, highly probable, cargoes that will be booked.  
Hedging of expenses  
2021  
Settlement volume  
Fair value mUSD  
FFAs are purchased to hedge freight expenses related to expected, highly probable, vessels to be time-char-  
tered-in.  
Bunker  
2022  
2023  
2024  
2025+  
Positive  
Negative  
FFA contracts are priced against published Baltic spot indices for the respective vessel types (Handysize, Su-  
pramax, Panamax). Actual earnings on spot voyages within the respective vessel type show strong correlation  
to the relevant Baltic spot indices, and FFA contracts are therefore considered to be effective hedges against  
highly probable freight revenue when applying a 1:1 hedging ratio.  
Purchased Mts  
Average USD / Mts  
Sold Mts  
763,747  
528.7  
86,200  
375.4  
4,200  
-
-
-
-
33.4  
-5.8  
-26.2  
-32.0  
361.8  
545,756  
548.2  
60,000  
451.8  
-
4.1  
Average USD / Mts  
-
37.5  
The movement in price difference between the Baltic Dry indices and the actual freight rates and difference in  
actual number of days may cause ineffectiveness.  
2020  
Settlement volume  
Fair value mUSD  
Bunker  
2021  
2022  
2023  
2024+  
Positive  
Negative  
Purchased Mts  
Average USD / Mts  
Sold Mts  
656,764  
350.7  
51,364  
381.7  
42,200  
310.8  
4,200  
361.8  
-
28.2  
-6.2  
-13.3  
-19.5  
372,600  
363.9  
25,500  
411.6  
36,000  
386.3  
1.6  
Average USD / Mts  
29.8  
—
—
—
GROUP 99  
NORDEN  
ANNUAL REPORT 2021  
FINANCIAL STATEMENTS  
 
NOTES TO THE FINANCIAL STATEMENTS  
4.2 Derivatives – continued  
The FFA hedging activities comprise the following contracts:  
Foreign currency risk hedging  
In 2016, NORDEN agreed to transport wood pellets from the USA to the UK with one monthly cargo during  
2019-2034. Part of the payments for the transport during 2020-2025 was denominated in GBP. The currency  
exposure arising from these payments has been swapped to USD at two of NORDEN’s partnership banks at an  
average GBP/USD rate of 1.37.  
2021  
Freight  
Settlement volume  
Fair value mUSD  
2022  
2023  
2024  
2025+  
Positive  
Negative  
Purchased days  
Average USD / day  
Sold days  
12,928  
15,134  
26,559  
17,681  
9,840  
13,022  
6,180  
1,320  
360  
127.1  
-4.3  
-166.3  
-170.6  
11,252  
11,800  
2021  
Fair value mUSD  
-
-
4.5  
Settlement principal  
2022  
2023  
2024  
2025+  
Positive  
Negative  
Average USD / day  
14,295  
-
-
GBP  
mUSD 8.7  
mUSD 8.7  
mUSD 8.7  
mUSD 0.7  
0.1  
-
131.6  
2020  
Fair value mUSD  
Settlement principal  
2021  
2022  
2023  
2024+  
Positive  
Negative  
2020  
Settlement volume  
Fair value mUSD  
Freight  
2021  
2022  
2023  
2024+  
Positive  
Negative  
GBP  
mUSD 8.7  
mUSD 8.7  
mUSD 8.7  
mUSD 9.5  
0.1  
-
Purchased days  
Average USD / day  
Sold days  
8,190  
9,026  
2,160  
9,414  
300  
1,260  
8,948  
300  
240  
10.8  
-0.2  
-15.5  
-15.7  
8,638  
Derivatives – not hedge accounting  
The Group has entered into hedging transactions, where hedge accounting is not used and where assets and  
liabilities are recognised with the following amounts:  
20,888  
9,264  
-
-
0.7  
Average USD / day  
9,040  
9,040  
11.5  
Amount in USD million  
2021  
2020  
Positive  
Negative  
Net  
Positive  
Negative  
Net  
Amount in USD million  
2021  
2020  
Freight Forward Agreements  
Forward exchange contracts  
14.1  
0.2  
-19.8  
-
-5.7  
0.2  
3.1  
-
-3.6  
-1.6  
-0.5  
-1.6  
Movements in the hedging reserve:  
Beginning of year  
-5.2  
-288.1  
-292.2  
546.5  
-39.0  
10.7  
19.2  
14.0  
-49.1  
-5.2  
Fair value adjustment for the year  
Realised contracts, transferred to operating costs  
Realised contracts, transferred to revenue  
End of year  
—
—
—
ANNUAL REPORT 2021 NORDEN  
100  
FINANCIAL STATEMENTS  
GROUP  
 
NOTES TO THE FINANCIAL STATEMENTS  
4.3 Fair value hierarchy  
The following table provides the fair value measurement hierarchy of the Group’s assets and liabilities:  
Amount in USD million Fair value measurement using  
Fair value measurement  
The Group measures financial instruments such as derivatives at fair value at each balance sheet date. Fair value  
is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between  
market participants at the measurement date. The fair value measurement is based on the presumption that  
the transaction to sell the asset or transfer the liability takes place either: - in the principal market for the asset  
or liability or - in the absence of a principal market the most advantageous market. The principal or the most  
advantageous market must be accessible by the Group.  
Quoted  
prices in  
Significant  
observable unobservable  
Significant  
Carrying active markets  
inputs  
inputs  
2021  
amount  
(Level 1)  
(Level 2)  
(Level 3)  
Receivables from subleasing 1)  
Freight receivables 2)  
Other receivables 2)  
Receivables from joint ventures 2)  
Cash and cash equivalents 2)  
Total financial assets at amortised costs  
32.8  
255.7  
15.6  
-
-
-
-
-
-
32.8  
-
-
-
-
-
-
The fair value of an asset or a liability is measured using the assumptions that market participants would use  
when pricing the asset or liability, assuming that market participants act in their economic best interest.  
-
-
In measuring the fair value of unlisted derivative financial instruments and other financial instruments for which  
there is no active market, fair value is determined using generally accepted valuation techniques.  
1.0  
-
-
410.7  
715.8  
32.8  
•
Market-based parameters such as market-based yield curves and forward exchange prices are used  
for the valuation.  
Derivatives  
3.3  
-
3.3  
-
•
•
•
For bunker contracts the price is based on observable stock markets, e.g. Rotterdam and Singapore.  
The value of FFAs is assessed on the basis of daily recorded prices from the Baltic Exchange.  
For non-current liabilities and other interest rate based financial instruments, the fair value is based  
on a discounted value of future cash flows. The 0-coupon rate with the addition of the Group’s interest  
margin is used as discount factor.  
Total financial assets at fair value  
through other comprehensive income  
3.3  
-
3.3  
-
Derivatives  
0.2  
-
0.2  
-
Total financial assets at fair value  
through the income statement  
0.2  
-
0.2  
-
The fair value of receivables and debt with a maturity of less than 1 year is assumed to approximate their face  
values less any estimated credit adjustments.  
Loans  
-342.0  
-98.7  
-
-102.0  
-
-342.0  
-
-
-
Bonds  
-
-
The fair value of bank debt is calculated as the present value of expected future repayments and interest pay-  
ments. As discount rate at the calculation of present value, a 0-coupon interest with similar maturities adjusted  
with the Group’s interest margin has been used.  
Lease liabilities 1)  
Debt to joint ventures 2)  
Trade payables 2)  
Total debt at amortised cost  
-607.7  
-13.9  
-226.1  
-1,288.4  
-
-
-
-102.0  
-342.0  
-
The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data  
is available to measure fair value, maximising the use of relevant observable inputs and minimising the use of  
unobservable inputs.  
Derivatives  
-1.0  
-
-1.0  
-
Total financial liabilities at fair value  
through other comprehensive income  
-1.0  
-
-1.0  
-
Financial instruments for which fair value is measured or disclosed in the Financial Statements are categorised  
within the fair value hierarchy, described as following accounting hierarchy:  
Derivatives  
-
-
-
-
Total financial liabilities at fair value  
through the income statement  
Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities  
Level 2: Valuation techniques for which lowest level input is significant to the fair value measurement  
is directly or indirectly observable  
Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement  
is unobservable  
-
-
-
-
1) The carrying amount is approximately equal to the fair value.  
2) Due to the short term nature, the carrying amount is assumed to approximate the fair value.  
—
—
—
GROUP 101  
NORDEN  
ANNUAL REPORT 2021  
FINANCIAL STATEMENTS  
 
NOTES TO THE FINANCIAL STATEMENTS  
4.3 Fair value hierarchy – continued  
Financial comments  
Amount in USD million  
Fair value measurement using  
Derivative financial instruments: Fair value of NORDEN’s forward exchange contracts and other derivative  
financial instruments (commodity instruments) are considered for fair value measurement at level 2 as the fair  
value can be determined directly on the basis of the published exchange rates and forward interest rates and  
prices at the reporting date.  
Quoted  
prices in  
Carrying active markets  
Significant  
observable unobservable  
Significant  
inputs  
(Level 2)  
inputs  
(Level 3)  
2020  
amount  
(Level 1)  
Receivables from subleasing 1)  
Freight receivables 2)  
Other receivables 2)  
Receivables from joint ventures 2)  
Cash and cash equivalents 2)  
Total financial assets at amortised costs  
26.7  
144.5  
15.5  
-
-
-
-
-
-
26.7  
-
-
-
-
-
-
Bonds: Fair value of NORDEN’s bonds is considered for fair value measurement at level 1 as the bond is quot-  
ed by NASDAQ, valued at the official closing price.  
-
-
Other financial instruments: Fair value of NORDEN’s other financial instruments is considered for fair value  
measurement at level 2 as the fair value can be determined on the basis of observable inputs.  
9.5  
-
-
331.6  
527.8  
26.7  
4.4 Share capital and dividends  
Accounting policies  
Derivative financial instruments  
2.2  
-
2.2  
-
Total financial assets at fair value  
through other comprehensive income  
2.2  
-
2.2  
-
Dividend  
Derivative financial instruments  
-
-
-
-
Dividend is recognised as a liability at the time of adoption by the shareholders at the annual general  
meeting. Dividend proposed by Management in respect of the year is stated under equity.  
Total financial assets at fair value  
through the income statement  
-
-
-
-
Treasury shares  
Interest-bearing liabilities  
Lease liabilities  
Trade payables 2)  
-320.0  
-355.4  
-131.2  
-806.6  
-
-
-
-
-320.0  
-
-
-
-
The acquisition and sale of treasury shares and dividends thereon are taken directly to retained earnings  
under equity.  
-
-
Total debt at amortised cost  
-320.0  
Treasury shares  
Derivative financial instruments  
-5.7  
-
-5.7  
-
Number  
of shares  
Nominal value  
(DKK’000)  
% of  
share capital  
Total financial liabilities at fair value  
through other comprehensive income  
-5.7  
-
-5.7  
-
2021  
2020  
2021  
2020  
2021  
2020  
Derivative financial instruments  
-1.6  
-
-1.6  
-
1 January  
2,894,467 2,888,467  
1,481,230 1,506,000  
2,894  
1,481  
2,888  
1,506  
7.11  
3.78  
6.84  
3.70  
Total financial liabilities at fair value  
through the income statement  
Acquisition  
-1.6  
-
-1.6  
-
Disposal due to exercise of  
share options  
-438,758  
-
-439  
-1,500  
2,436  
-
-1,500  
2,894  
-1.12  
-3.55  
6.22  
-
-3.43  
7.11  
1) The carrying amount is approximately equal to the fair value.  
2) Due to the short term nature, the carrying amount is assumed to approximate the fair value.  
Capital reduction  
-1,500,000 -1,500,000  
31 December  
2,436,939 2,894,467  
—
—
—
ANNUAL REPORT 2021 NORDEN  
102  
FINANCIAL STATEMENTS  
GROUP  
 
NOTES TO THE FINANCIAL STATEMENTS  
4.4 Share capital and dividends - continued  
Financial comments  
4.5 Earnings per share (EPS)  
Amount in USD million  
2021  
2020  
The Company is authorised by the general meeting to acquire a maximum of 3,920,000 treasury shares, equal  
to 10% of the share capital. Treasury shares are acquired for the purpose of hedging in connection with share-  
based payment, see note 5.3 "Share-based payment" and in connection with share buy-back programmes.  
The basis for calculating earnings per share  
and diluted earnings per share is set out below:  
Profit for the year  
204.5  
86.0  
At 1 January 2021, the Group had a total of 37,805,533 outstanding shares of DKK1 each and at 31 December  
2021, a total of 36,763,061 outstanding shares of DKK 1 each.  
Weighted average number of ordinary shares  
Weighted average number of treasury shares  
Weighted average number of shares  
39,717,808 41,540,164  
2,203,639 2,759,735  
37,514,169 38,780,429  
NORDEN initiated a share buy-back programme in 2021. The programme runs from 4 November 2021 up to  
and including no later than end February 2022. The share buy-back programme is initiated pursuant to the au-  
thorisation granted to the Board of Directors, which entitles NORDEN to acquire treasury shares at a nominal  
value not exceeding 10% of the share capital at the market price applicable at the time of the acquisition with  
a deviation of up to 10%. The purpose of the share buy-back programme is to adjust the capital structure of  
the Group. A maximum of 3,920,000 shares can be acquired.  
Dilutive effect of outstanding options and restricted  
performance shares  
187,742  
125,800  
Weighted average number of shares including dilutive effect of  
options and restricted performance shares  
37,701,911 38,906,229  
Earnings per share, EPS (USD)  
5.45  
5.42  
2.22  
2.22  
Since the 2021 share buy-back programme were initiated up until year-end 2021, the total number of acquired  
shares is 953,500 at a total amount of DKK 148,372,405. Acquired shares in 2021 related to share buy-back  
programme 2020 amounts to 527,730 at a total amount of DKK 50,665,055.  
Earnings per shares, Diluted, EPS-D (USD)  
4.6 Loans and bonds  
Accounting policies  
In 2021 shares were acquired at an average price of DKK 136 per share with prices ranging from DKK 110 to  
DKK 169. The total cost of DKK 212,272,115 was deducted from retained earnings.  
In relation to the share buy-back programme, NORDEN implemented a capital reduction of nom. DKK  
1,500,000 during the year. The share capital at the end of 2021 was thus nom. DKK 39,200,000 compared to  
DKK 40,700,000 in the beginning of the year.  
Loans and bonds comprise of amounts borrowed from banks and a credit institution, and senior unse-  
cured bonds listed on NASDAQ Copenhagen A/S.  
Loans and bonds are recognised at the time the liabilities are obtained in the amount of the proceeds after  
deduction of transaction costs. In subsequent periods, such loans and bonds are recognised at amortised cost,  
equivalent to the capitalised value applying the effective rate of interest at the inception of the loan or bond, to  
the effect that the difference between the proceeds and the nominal value is recognised as interest expense in  
the income statement over the term of the loan or bond.  
Dividends  
2021  
2020  
Proposed dividend per share, DKK  
18.0  
9.0  
The amount available for distribution as dividends comprises (USD million)  
772.1  
527.9  
Commission paid to set up a credit facility is recognised as transaction costs to the extent that it is probable  
that the facility will be partially utilised. To the extent that it is not probable that the facility will be partially or  
fully utilised, commission is amortised over the term of the credit facility.  
Dividends paid in 2021 amount to USD 53 million equal to DKK 9 per share. The proposed dividend for  
2021 will be considered at the annual general meeting on 24 March 2022.  
—
—
—
GROUP 103  
NORDEN  
ANNUAL REPORT 2021  
FINANCIAL STATEMENTS  
 
NOTES TO THE FINANCIAL STATEMENTS  
4.6 Loans and bonds - continued  
Amount in USD million  
2021  
2020  
Amount in USD million  
2021  
2020  
Interest-bearing liabilities include bank debt and bonds,  
which includes the following items:  
Mortgages and securities  
Security for loans  
296.4  
26  
320.0  
31  
Current portion of non-current debt within 1 year  
Non-current liabilities between 1 and 5 years  
Non-current liabilities over 5 years  
Total  
39.9  
336.8  
64.0  
37.6  
211.9  
70.5  
– number of vessels pledged  
– number of buildings pledged  
– carrying amount  
2
2
641.1  
594.9  
777.6  
750.7  
588.3  
813.0  
440.7  
320.0  
– mortgaged amount  
Amount insured on vessels  
Interest-bearing liabilities comprise the carrying amount:  
Fixed-rate loans  
Floating-rate loans  
Bonds  
59.3  
284.9  
98.7  
22.2  
300.4  
-
Some of the mortgages have been registered with an amount to secure future drawings under a revolving  
credit facility of USD 100 million of which 0 million have been drawn.  
Borrowing costs  
Total  
-2.2  
-2.6  
440.7  
320.0  
Movements in interest-bearing liabilities:  
Interest-bearing liabilities at 1 January  
New loans  
320.0  
417.1  
-395.1  
98.7  
303.3  
132.0  
-117.1  
-
Instalments  
Bonds  
Other adjustments  
-
1.8  
Interest-bearing liabilities at 31 December  
440.7  
320.0  
Financial comments  
The Group’s loan agreements generally include a clause on the lender’s option to terminate agreement in the  
event the majority control of the Group is changed. Mortgages and security provided in relation to liabilities  
are disclosed in note 3.1 "Tangible assets".  
Refer to note 4.3 "Fair value hierarchy" for fair value hierarchy.  
—
—
—
ANNUAL REPORT 2021 NORDEN  
104  
FINANCIAL STATEMENTS  
GROUP  
 
NOTES TO THE FINANCIAL STATEMENTS  
4.7 Leases – lessee  
This note provides information on leases where the Group is the lessee.  
period so as to produce a constant period rate of interest on the remaining balance of the liabilities for  
each period.  
The nature of the Group’s leasing activities  
The majority of the Group’s lease contracts are time charter contracts on vessels, and lease of office spaces for  
representation offices around the world, office equipment and a limited number of company cars.  
In calculating the present value of lease payments, NORDEN uses the incremental borrowing rate at the  
lease commencement date. The incremental borrowing rate applied is in the range of 4-6%, depending  
on the maturity of the lease contracts. In addition, the carrying amount of lease liabilities is remeasured if  
there is a modification, a change in the lease term, a change in the fixed lease payments or a change in the  
assessment to purchase the underlying asset.  
The time charter leases have originally been entered with a lease period of up to 8 years. Some leases include  
an option to be extended for 1 additional year at a time for up to 3 years. Leases may also include purchase  
options, typically exercisable as from the end of the third year to the expiry of the period of extension.  
Short-term leases and leases of low-value assets  
NORDEN applies the lease recognition exemptions related to the short-term leases (lease term 12 months  
or less) and leases of low-value assets. Lease payments on short-term leases and leases of low-value assets  
are recognised in the income statement as an expense on a straight-line basis over lease term.  
Accounting policies  
At inception of a new contract, NORDEN assesses whether a contract is a lease or contains a lease. This  
involves exercise of judgement whether:  
Cash flows  
•
•
•
the contract depends on the use of a specific asset,  
NORDEN obtains substantially all the economic benefits from the use of the assets, and  
NORDEN has the right to direct the use of the asset.  
In the statement of cash flows, cash payments for the principal portion of the lease liabilities and related  
cash payments for the interest portion are classified within the financing activities. For short-term leases or  
leases of low-value assets, the lease payments are classified within the operating activities.  
Right-of-use assets  
Accounting estimates  
NORDEN recognises right-of-use assets at the commencement date of the lease (i.e. the date the underly-  
ing asset is available for use). Right-of-use assets are measured at cost less any accumulated depreciation,  
impairment losses and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets  
includes the amount of lease liabilities recognised, and lease payments made before the commencement  
date. Unless NORDEN is reasonably certain to obtain ownership of the leased asset at the end of the lease  
term, the recognised right-of-use assets are depreciated on a straightline basis over the shorter of its  
estimated useful life and the lease term.  
NORDEN has elected to separate lease and non-lease components for leases of time charter contracts on  
vessels. For these contracts, the estimated non-lease component (daily running costs) is excluded from the  
right-of-use assets. Assessing the consideration attributable to the non-lease component includes a signif-  
icant accounting judgement, where Management uses market data from an independent service provider.  
The market data consists of benchmarking reports and allows NORDEN to benchmark vessels operating  
costs against a global sample. The measurement of the non-lease component takes several factors into  
consideration such as operating costs, aging of the vessels, vessel types, etc.  
Impairment of right-of-use assets  
Similar to owned assets, right-of-use assets are subject to testing for impairment if there is an indicator of  
impairment. Refer to note 3.1 "Tangible assets" for further information.  
In this regard, Management assesses the service provider’s independency, objectivity and qualifications  
and whether the market data is appropriate for the purpose, e.g. based in sufficient market data.  
Lease liabilities  
At the commencement date of a lease, NORDEN recognises lease liabilities measured at the present value  
of lease payments to be made over the lease term. The lease term comprises the non-cancellable period  
with addition of periods covered by options, if NORDEN is reasonably certain to exercise such extension  
options. This assessment is made on inception of the lease. The lease payments include fixed payments  
and variable payments depending on an index or a rate. The lease payments also include the exercise  
price of a purchase option reasonably certain to be exercised by NORDEN. Lease payments are allocated  
between principal and finance cost. The finance cost is charged to the income statement over the lease  
—
—
—
GROUP 105  
NORDEN  
ANNUAL REPORT 2021  
FINANCIAL STATEMENTS  
 
NOTES TO THE FINANCIAL STATEMENTS  
4.7 Leases – lessee – continued  
Amount in USD million  
2021  
2020  
Amount in USD million  
2021  
2020  
Amounts recognised in the balance sheet  
Amounts recognised in the income statement  
Set out below are the carrying amounts of right-of-use assets and  
lease liabilities recognised and the movements during the period:  
Expenses related to the service component of right-of-use assets  
(included in vessel operating costs)  
206.2  
165.9  
839.4  
Expenses related to short-term leases (included in vessel operating costs)  
1,361.6  
Right-of-use assets  
Cost at 1 January  
Additions  
Depreciation of right-of-use assets (included in depreciation,  
amortisation and impairment losses)  
527.3  
443.1  
67.5  
382.5  
155.1  
28.2  
252.1  
23.9  
153.3  
19.8  
Interest expenses of lease liabilities (included in financial expenses)  
Remeasurements  
Disposals  
-79.6  
958.3  
-38.5  
527.3  
Amounts recognised in the statement of cash flows  
Instalment on lease liabilities  
Cost at 31 December  
268.4  
23.9  
175.3  
19.8  
Interest, lease liabilities  
Depreciation at 1 January  
Depreciation  
-228.7  
-252.1  
79.0  
-111.5  
-153.3  
36.2  
Lease commitments and options (excluding the non-service component)  
Balance sheet  
Disposals  
Depreciation at 31 December  
-401.8  
-228.6  
At year-end, the Group has entered lease agreements with future commencement date, which will affect the  
balance sheet as follow, when the time-chartered vessels will be delivered, and the Group obtains control of  
the asset. The minimum lease payments excluding the non-lease components amount to:  
Carrying amount at 31 December  
556.5  
298.7  
Asset  
Dry  
Tanker  
Lease liabilities  
Amount in USD million  
Management Operator Operator  
Total  
Lease liabilities at 1 January  
Additions  
355.4  
454.7  
66.9  
330.5  
169.5  
32.9  
2021  
Remeasurements  
Instalments  
Within 1 year  
Between 1 to 5 years  
More than 5 years  
Total  
99.0  
15.4  
-
6.8  
-
12.8  
118.6  
15.4  
-
-268.4  
-0.9  
-175.3  
-2.2  
-
-
Disposals  
-
Lease liabilities at 31 December  
607.7  
355.4  
114.4  
6.8  
12.8  
134.0  
Non-current  
Current  
Total  
269.9  
337.8  
607.7  
213.3  
142.1  
355.4  
2020  
Within 1 year  
Between 1 to 5 years  
More than 5 years  
Total  
100.9  
35.5  
-
-
-
-
-
-
-
-
-
100.9  
35.5  
-
136.4  
136.4  
—
—
—
ANNUAL REPORT 2021 NORDEN  
106  
FINANCIAL STATEMENTS  
GROUP  
 
NOTES TO THE FINANCIAL STATEMENTS  
4.7 Leases – lessee – continued  
Some leases include an option to be extended for 1 additional year at a time for up to 3 years. The exercise  
of the option is based on an individual assessment. If all available extension options as of year-end, where ex-  
cised when possible, the right-of-use asset and corresponding lease liability would increase with the following  
amounts in each future year (undiscounted and excluding non-lease component).  
Income statement  
At year-end, the Group has entered leases agreements of vessels, which will have the following future effect in  
the income statement related to the non-lease component (daily runing costs):  
Asset  
Dry  
Tanker  
Asset  
Dry  
Tanker  
Amount in USD million  
Management Operator Operator  
Total  
Amount in USD million  
Management Operator Operator  
Total  
2021  
2021  
Within 1 year  
Between 1 to 5 years  
More than 5 years  
Total  
39.7  
322.5  
153.0  
515.2  
10.2  
23.1  
-
21.3  
18.7  
-
71.2  
364.3  
153.0  
588.5  
Within 1 year  
Between 1 to 5 years  
More than 5 years  
Total  
136.7  
243.6  
4.9  
75.5  
29.6  
-
19.8  
10.2  
-
232.0  
283.4  
4.9  
33.3  
40.0  
385.2  
105.1  
30.0  
520.3  
Asset  
Dry  
Tanker  
Asset  
Dry  
Tanker  
Amount in USD million  
Management Operator Operator  
Total  
Amount in USD million  
Management Operator Operator  
Total  
2020  
2020  
Within 1 year  
Between 1 to 5 years  
More than 5 years  
Total  
35.6  
318.3  
159.0  
512.9  
1.4  
-
2.8  
-
39.8  
318.3  
159.0  
517.1  
Within 1 year  
Between 1 to 5 years  
More than 5 years  
Total  
109.0  
245.4  
9.4  
10.8  
2.1  
-
5.8  
-
125.6  
247.5  
9.4  
-
-
-
1.4  
2.8  
363.8  
12.9  
5.8  
382.5  
Leases may also include purchase options, typically exercisable as from the end of the third year to the expiry  
of the period of the extension. Exercise of a purchase option on an individual vessel is based on an individual  
assessment. On a few leases, the payment is linked to a freight index. For information on the Group’s charter  
contracts with purchase option, see “Asset Management” in the Management’s Review.  
—
—
—
GROUP 107  
NORDEN  
ANNUAL REPORT 2021  
FINANCIAL STATEMENTS  
 
NOTES TO THE FINANCIAL STATEMENTS  
4.8 Leases – lessor and COAs  
Below is the maturity analysis for sublease receivables based on contractual undiscounted payments:  
This note provides information on leases where the Group is the lessor.  
Amount in USD million  
2021  
2020  
Accounting policies  
Subleases  
Within 1 year  
Between 1 to 5 years  
More than 5 years  
Total  
24.6  
9.2  
-
14.8  
13.4  
-
NORDEN enters into arrangements to sublease an underlying asset to a third party, while NORDEN retains  
the primary obligation under the original lease. In such arrangements, NORDEN acts as both the lessee  
and lessor of the same underlying asset.  
33.8  
28.2  
If a leased vessel is subleased under terms transferring substantially all remaining risks and rewards under  
the head lease to the lessee in the sublease, the right-of-use asset is derecognised, and a lease receivable  
is recognised. Gain/loss on the derecognised right-of-use asset is recognised in the income statement as  
revenue.  
COAs and operating lease income  
Accounting policies  
The Group leases out vessel under non-cancellable operating leases agreements. The leases have varying  
terms, escalation clauses and renewal rights.  
During the term of the sublease, NORDEN recognises both finance income on the sublease (as revenue)  
and interest expense on the head lease (as financial expenses).  
Agreements to charter out vessels on time charters, where all significant risks and rewards of ownership  
have been transferred to the lessee are recognised as a receivable in the balance sheet. The receivable is  
measured in the same way as the lease liability in cases, where the Group is the lessee.  
Cash flows  
Cash payments received on sublease receivables are classified within the operating activities.  
Other agreements to charter out vessels are considered operating leases in accordance to IFRS 16 Leases,  
where NORDEN is presented as the lessee. Payments in connection with operating leases are recognised  
on a straight-line basis in the income statement over the terms of the leases.  
Amount in USD million  
2021  
2020  
Amounts recognised in the income statement  
Revenue from sublease financial income (included in revenue)  
Gain on derecognised right-of-use assets (included in revenue)  
1.5  
1.7  
0.5  
Accounting judgements  
18.8  
Management’s assessment of whether leases on vessels should be classified as financial or operational  
leasing is based on an overall evaluation of each lease.  
Amounts recognised in the statement of cash flows  
Instalment on sublease receivables  
24.8  
17.4  
Amounts recognised in the balance sheet  
Set out below are the carrying amounts of receivables from subleasing  
recognised and the movements during the period:  
Receivables from subleasing  
Receivables from subleases at 1 January  
Additions for the period  
Remeasurements  
26.7  
31.5  
-0.6  
30.5  
13.6  
-
Payments received  
-24.8  
32.8  
-17.4  
26.7  
Receivables from subleases  
—
—
—
ANNUAL REPORT 2021 NORDEN  
108  
FINANCIAL STATEMENTS  
GROUP  
 
NOTES TO THE FINANCIAL STATEMENTS  
4.8 Leases – lessor and COAs – continued  
At 31 December, the Group had entered into COAs with customers amounting to  
Amount in USD million  
2021  
2020  
Within 1 year  
454.5  
79.6  
228.6  
74.1  
Between 1 to 2 years  
Between 2 and 3 years  
Between 3 and 4 years  
Between 4 and 5 years  
Later than 5 years  
Total  
58.3  
55.1  
51.4  
51.3  
29.9  
46.7  
68.6  
93.5  
742.3  
549.3  
The Group has operating lease income as lessor amounting to:  
Amount in USD million  
2021  
2020  
Within 1 year  
220.7  
153.4  
76.7  
21.4  
0.5  
Between 1 to 2 years  
Between 2 and 3 years  
Between 3 and 4 years  
Between 4 and 5 years  
Later than 5 years  
Total  
48.4  
14.3  
-
-
-
-
-
283.4  
252.0  
The above amounts regarding operation lease income comprise the agreed time charter rates. The lease and  
service components will be recognised as revenue under the same pattern of transfer to the customer.  
Separate disclosure of the lease components and the service income components has not been provided as it  
is impracticable to establish this disclosure.  
The above includes the Group’s expected share of COAs and lease income.  
Separate disclosure of owned vessels cf. note 3.1 "Tangible assets" and right-of-use assets cf. note 4.7 "Leases  
- lessee", leased out under operating leases, is not provided as entering time-charter out contracts is an inte-  
gral part of the business and no vessels are designated as time-charter out vessels.  
—
—
—
GROUP 109  
NORDEN  
ANNUAL REPORT 2021  
FINANCIAL STATEMENTS  
 
NOTES TO THE FINANCIAL STATEMENTS  
5.1 Fees to auditor appointed at the general meeting  
Section 5  
Amount in USD million  
2021  
2020  
Other notes  
5.1 Fees to auditor appointed at the general meeting 110  
“Overhead and administration costs” include  
the following fees to PricewaterhouseCoopers:  
5.2 Cash flow specifications  
110  
111  
113  
113  
113  
114  
5.3 Share-based payment  
Statutory audit  
Other assurance services  
Tax consultancy  
Other services  
Total  
0.5  
-
0.9  
0.1  
0.2  
0.1  
1.3  
5.4 Unrecognised contingent assets and liabilities  
5.5 Related party disclosures  
5.6 Events after the reporting date  
5.7 Group structure  
0.4  
0.1  
1.0  
The fee for non-audit services performed by PricewaterhouseCoopers Statsautoriseret Revisionspartnersel-  
skab is USD 0.5 million (2020: USD 0.4 million) and comprises accounting and tax advisory services.  
5.2 Cash flow specifications  
Amount in USD million  
2021  
2020  
Reversal of items from the income statement  
Depreciation, amortisation and impairment losses  
Financial items, net  
295.5  
34.8  
201.9  
26.7  
18.2  
3.0  
Profit/loss from sale of vessels, etc.  
Share of profit/loss of joint ventures  
Other reversed non-cash operating items  
Total  
-7.7  
-1.1  
-12.9  
308.6  
9.9  
259.7  
Change in working capital  
Inventories  
-51.3  
-169.7  
157.5  
14.7  
27.9  
-1.0  
Freight and other receivables, etc.  
Trade and other payables, etc.  
Fair value adjustments of cash flow  
hedging instruments taken to equity  
-35.3  
2.4  
-4.8  
0.5  
Exchange rate adjustment of working capital  
Total  
-96.4  
37.3  
NORDEN has since 2019 engaged in supply chain finance with some suppliers, which is included in net  
working capital. The supply chain finance program has not changed significant characteristic of the debt, and  
therefore the classification as trade payable is maintained.  
—
—
—
ANNUAL REPORT 2021 NORDEN  
110  
FINANCIAL STATEMENTS  
GROUP  
 
NOTES TO THE FINANCIAL STATEMENTS  
5.3 Share-based payment  
Accounting policies  
Outstanding restricted shares is composed as follows:  
Number of restricted shares  
The value of services rendered by employees as consideration for share-based incentive payments is  
measured at the fair value of the granted options and restricted shares, respectively. For both, this fair val-  
ue is recognised in the income statement over the vesting period. A corresponding increase is recognised  
in equity.  
Originally Executive  
Vesting  
period  
granted  
in total  
Manage-  
Other  
Granted  
ment executives  
Others  
Total  
30 Jan. 2019  
6 Feb. 2020  
12 Feb. 2021  
30 Jan. 2019 - 31 Jan. 2022  
6 Feb. 2020 - 6 Feb. 2023  
12 Feb. 2021 - 13 Feb. 2023  
82,452  
87,698  
75,946  
23,317  
28,552  
28,643  
25,096  
15,175  
25,902  
28,832  
67,044  
78,324  
72,827  
The fair value of the options is determined using the Black-Scholes valuation model, taking into account  
the terms of the grant and the actual number of vested options. The fair value of restricted shares is de-  
termined using the share price at the grant date adjusted for expected dividend per share, which is based  
on historical dividends. On recognition, the number of options and restricted shares expected to vest are  
estimated. The estimate is adjusted over the vesting period to the actual number of vested options and  
restricted shares.  
23,779  
18,899  
The fair value of restricted shares granted in 2021 is USD 1,437 thousand (USD 1,183 thousand).  
The expense for the year regarding restricted shares is USD 1,128 thousand (USD 883 thousand).  
Share options  
In the years 2016-2017, the Board of Directors has granted share options comprising a total of 893,350 shares  
to a number of employees. The distribution between years and exercise periods can be seen below. It applies  
to all the programmes that the options entitle the holder to acquire one share per option at an exercise price.  
Restricted shares  
In 2021, the Board of Directors has granted restricted shares comprising a total of 75,946 shares to a number  
of employees.  
The share options may be exercised after at least 3 years and no more than 6 years from the respective grant  
dates. Exercise of the share options is subject to the continued employment with the Company at the exercise  
date. Special terms apply in case of death and illness.  
The restricted shares are granted free of charge and remain restricted during a vesting period of 3 years.  
Transfer of the restricted shares is subject to the continued employment with the Group in the 3 years vesting  
period. It applies that upon vesting the employee will receive one share of nominally DKK 1 for each vested  
restricted share. Special terms apply in case of death and illness. Other than being employed by NORDEN at  
the time of granting of the restricted shares no conditions are attached to the grant. Where a recipient resigns  
during the vesting period, non-vested restricted shares will lapse.  
Upon exercise, the Executive Management and some of the executives must reinvest 25% of any net gain in  
NORDEN shares and keep these for at least 2 years. If the employee already owns shares, this can be included  
in the determination of the investment amount.  
The share price at the grant date was DKK 115.39 (DKK 91.05). Expected dividend per share at the grant date  
was DKK 15.00 (DKK 2.50).  
The exercise price is determined as the 5-day average of the market price following the grant, less all dividend  
payments after the grant date plus a fee of 10% (2016-2017), respectively, in proportion to the market price at  
the date of grant. The average exercise price of the 447,932 share options exercised in 2021 is DKK 107.68.  
Movement in the number of outstanding restricted shares is as follows:  
Movement in the number of outstanding share options is as follows:  
2021  
2020  
2021  
2020  
Outstanding at 1 January  
Granted during the period  
Exercised during the period  
Lapsed during the period  
Outstanding at 31 December  
209,844  
75,946  
130,490  
87,698  
-
Number of Number of  
options options  
-58,502  
-9,093  
-8,344  
209,844  
Outstanding at 1 January  
Exercised during the period  
Lapsed during the period  
Outstanding at 31 December  
1,056,526 1,355,707  
218,195  
-447,932  
-272,216  
-
-299,181  
336,378 1,056,526  
—
—
—
GROUP 111  
NORDEN  
ANNUAL REPORT 2021  
FINANCIAL STATEMENTS  
 
NOTES TO THE FINANCIAL STATEMENTS  
5.3 Share-based payment – continued  
Outstanding share options is composed as follows:  
Number of share options  
Other executives  
Exercise price  
at 31 December  
2021, DKK  
Originally granted  
in total  
Executive  
Management  
Granted  
Exercise period  
Others  
Total  
Share options  
2 March 2016  
02.03.2019 - 02.03.2022  
09.04.2020 - 09.04.2023  
02.03.2020 - 02.03.2023  
94.50  
115.30  
132.89  
126.34  
435,159  
50,000  
-
-
10,000  
50,000  
24,500  
-
34,500  
50,000  
9 January 2017  
2 March 2017  
408,191  
893,350  
80,000  
80,000  
47,000  
124,878  
149,378  
251,878  
336,378  
Outstanding at 31 December  
107,000  
Financial comments  
The division into employee categories is based on the title of the employee at the grant date. Resigned  
employees are included in the category “Others”.  
The expense for the year regarding share options  
The expense for the year is USD 0 thousand (USD 58 thousand)  
—
—
—
ANNUAL REPORT 2021 NORDEN  
112  
FINANCIAL STATEMENTS  
GROUP  
 
NOTES TO THE FINANCIAL STATEMENTS  
5.4 Unrecognised contingent assets and liabilities  
5.5 Related party disclosures  
Accounting policies  
Accounting policies  
Contingent assets are recognised, when it is virtually certain that the claim will have a positive outcome for  
the Group. A contingent liability is recognised, if it is likely that the claim will have a negative outcome and  
when the amount is estimable. Rulings in connection with such matters may in future accounting periods  
produce realised gains or losses, which may differ considerably from the recognised amounts or information.  
Related parties include the Board of Directors and the Executive Management as well as their close relatives.  
Related parties also include companies in which the above persons have significant interests as well as com-  
panies and foundations which have direct or indirect significant influence through shareholdings.  
In addition, related parties include joint ventures, refer to note 3.2 "Investments in joint ventures".  
Accounting estimates  
Management assesses provisions and contingencies on an ongoing basis, as well as the likely outcome  
of pending or potential legal proceedings, etc. The assessments are made on the basis of legal opinions  
of the signed agreements, which in considerable claims also include assessments obtained from external  
advisors including external legal advisers, among others.  
Amount in USD million  
2021  
2020  
Income statement  
Sale of goods and services, joint ventures  
Purchases of goods and services, joint ventures  
16.1  
45.8  
19.4  
26.3  
Contingent liabilities  
Claims have been made against the Group, primarily concerning discharge responsibility and broker fees,  
etc. The Group and its legal advisors consider the claims unjustified, and it is Management’s opinion that the  
claims will not have any material impact on the Group’s financial position, results of operations and cash flows.  
Assets  
Receivables, joint ventures  
1.0  
9.5  
-
The Group has provided financial support for its liabilities regards to the joint ventures Polar Navigation Ltd.  
and NORD SUMMIT Pte. Ltd.  
Liabilities  
Debt, joint ventures  
13.9  
The Group has no related parties controlling NORDEN.  
Accounts with joint ventures are related to operations, unsecured and with usual interest rates.  
Remuneration and share-based payment of the Board of Directors and the Executive Management are dis-  
closed in note 2.3 "Staff costs and remuneration" and note 5.3 "Share-based payment".  
Guarantees to joint ventures are mentioned in note 3.2 "Investments in joint ventures".  
No other transactions took place during the year with the Board of Directors, the Executive Management,  
major shareholders or other related parties.  
5.6 Events after the reporting date  
There are no subsequent events. Refer to page 11 in the Management's Review.  
—
—
—
GROUP 113  
NORDEN  
ANNUAL REPORT 2021  
FINANCIAL STATEMENTS  
 
NOTES TO THE FINANCIAL STATEMENTS  
5.7 Group structure  
NORDEN Tankers & Bulkers Chile SpA  
NORDEN Tankers & Bulkers India Private Ltd.  
Chile 100%  
India 100%  
NORDEN Shipping (Singapore) Pte. Ltd.  
NORDEN Shipping (Shanghai)  
Singapore 100%  
China 100% Branch  
NORDEN Shipping (USA) LLC  
NORD SUMMIT Pte. Ltd.  
USA 100%  
Singapore 50%  
NORDEN Tankers & Bulkers do Brazil Ltda.  
Polar Navigation Pte. Ltd.  
Brazil 100%  
Singapore 50%  
Norient Cyprus Ltd.  
NORDEN Shipping (Australia) Pty. Ltd.  
Cyprus 100%  
Australia 100%  
NORDEN Asset Management A/S  
Nord Goodwill LLC  
Denmark 100%  
USA 100%  
Dampskibsselskabet NORDEN A/S  
Denmark  
NORDEN Shipping Abidjan SARLU  
Ivory Coast 100%  
Norient Product Pool ApS  
Denmark 100%  
NORDEN Shipping (Canada)  
Norient (USA) LLC  
Canada 100% Branch  
USA 100%  
NORDEN Shipping Middle East DMCC  
Norient Product Pool  
UAE 100%  
Singapore 100% Branch  
NORDEN SYNERGY Ship Management A/S  
Denmark 50%  
NORDEN Gabon A/S  
NORDEN Transhipment Services Gabon  
Denmark 100%  
Gabon 100% Branch  
—
—
—
ANNUAL REPORT 2021 NORDEN  
114  
FINANCIAL STATEMENTS  
GROUP  
 
PARENT COMPANY  
FINANCIAL  
STATEMENTS  
116 Income Statement  
117 Balance Sheet  
118 Statement of Changes in Equity  
119 Notes to the Financial Statements  
—
—
—
PARENT 115  
NORDEN  
ANNUAL REPORT 2021  
FINANCIAL STATEMENTS  
 
INCOME STATEMENT  
1 JANUARY - 31 DECEMBER  
Amount in USD million  
Note  
2021  
2020  
Revenue  
2.1  
3,389.6  
0.1  
2,399.0  
8.5  
Other operating income  
Vessel operating costs  
Other external costs  
Staff costs  
-2,773.9  
-28.3  
-2,064.7  
-21.0  
2.2  
-73.8  
-53.6  
Profit before depreciation, amortisation  
and impairment losses, etc. (EBITDA)  
513.7  
268.2  
Profit/(loss) from sale of vessels, etc.  
Depreciation, amortisation and impairment losses  
Profit from operations (EBIT)  
-
-311.0  
202.7  
-0.1  
-186.4  
81.7  
2.3  
Profit/(loss) from investments in subsidiaries  
Profit/(loss) from investments in joint ventures  
Financial income  
3.2  
3.3  
2.4  
2.4  
39.9  
-0.2  
31.4  
0.1  
0.2  
3.4  
Financial expenses  
-33.6  
209.0  
-25.1  
91.5  
Profit before tax  
Tax for the year  
2.5  
4.4  
-4.5  
-5.5  
Profit for the year  
204.5  
86.0  
—
—
—
ANNUAL REPORT 2021 NORDEN  
116  
FINANCIAL STATEMENTS  
PARENT  
 
BALANCE SHEET AT 31 DECEMBER  
ASSETS  
EQUITY AND LIABILITIES  
Amount in USD million  
Note  
2021  
2020  
Amount in USD million  
2021  
2020  
Vessels  
3.1  
4.6  
3.1  
3.1  
23.3  
659.2  
48.7  
-
434.3  
48.0  
Share capital  
4.3  
4.4  
6.2  
-31.2  
6.5  
4.1  
Right-of-use assets  
Reserve for hedges  
Property and equipment  
Prepayments on vessels and newbuildings  
Total tangible assets  
Reserve for net revaluation according to the equity method  
246.2  
665.0  
107.1  
993.3  
364.0  
467.4  
60.5  
83.4  
13.5  
Retained earnings  
Proposed dividend  
Total equity  
814.6  
495.8  
902.5  
Investments in subsidiaries  
Investments in joint ventures  
Receivables from subleasing  
Total financial assets  
3.2  
3.3  
4.7  
686.3  
-
803.8  
0.1  
Loans  
4.5  
4.6  
4.5  
41.6  
317.7  
98.7  
24.1  
294.8  
-
9.1  
22.5  
Lease liabilities  
Bonds  
695.4  
826.4  
Total non-current liabilities  
458.0  
318.9  
Total non-current assets  
1,510.0  
1,322.2  
Loans  
4.5  
4.6  
4.6  
396.2  
210.2  
125.0  
-
4.6  
201.9  
120.7  
287.8  
0.9  
Inventories  
111.7  
24.3  
244.9  
28.8  
0.7  
60.8  
16.6  
130.0  
6.2  
Lease liabilities  
Trade payables  
Debt to subsidiaries  
Current tax liabilities  
Other payables  
Deferred income  
Total current liabilities  
Receivables from subleasing  
Freight receivables  
4.7  
Receivables from subsidiaries  
Receivables from joint ventures  
Company tax  
2.5  
70.8  
80.0  
886.8  
38.5  
1.6  
-
51.9  
Other receivables  
17.7  
115.9  
282.5  
828.1  
16.0  
65.1  
308.3  
605.5  
706.3  
Prepayments  
Cash and cash equivalents  
Total current assets  
Total liabilities  
1,344.8  
2,338.1  
1,025.2  
1,927.7  
TOTAL EQUITy AND LIABILITIES  
TOTAL ASSETS  
2,338.1  
1,927.7  
—
—
—
PARENT 117  
NORDEN  
ANNUAL REPORT 2021  
FINANCIAL STATEMENTS  
 
STATEMENT OF CHANGES  
IN EQUITY AT 31 DECEMBER  
Reserve  
Reserve under the  
Share  
for  
equity Retained Proposed  
Amount in USD million  
Note capital hedges method earnings dividend  
Total  
Equity at 1 January 2021  
6.5  
4.1  
364.0  
467.4  
60.5  
902.5  
Profit for the year  
Capital reduction  
-
-
-
-117.8  
-
322.3  
0.3  
-
-
204.5  
-
-0.3  
Fair value adjustments taken to  
equity, hedging instruments  
-
-35.3  
-
-
-33.1  
6.6  
-
-
-35.3  
Acquisition of own shares  
Exercise of share options  
Dividends paid  
4.3  
-
-
-
-33.1  
-
-
-
-
6.6  
-
-
-
-
-53.0  
-2.7  
-4.8  
100.4  
6.7  
-53.0  
Exchange rate adjustment to dividends paid  
Dividends related to treasury shares  
-
-
-
2.7  
-
-
-
-
4.8  
-
-
Proposed dividend  
4.4  
-
-
-
-
-100.4  
-6.7  
Proposed dividend on treasury shares  
Share-based payment  
4.4  
5.2  
-
-
-
-
-
-
1.1  
-
1.1  
Changes in equity  
-0.3  
6.2  
-35.3  
-31.2  
-117.8  
246.2  
197.6  
665.0  
46.6  
107.1  
90.8  
993.3  
Equity at 31 December 2021  
Reserve  
Reserve under the  
for equity Retained Proposed  
Share  
Amount in USD million  
Note capital hedges method earnings dividend  
Total  
Equity at 1 January 2020  
6.7  
8.9  
332.3  
495.3  
15.8  
859.0  
Profit for the year  
Capital reduction  
-
-
-
31.7  
-
54.3  
0.2  
-
-
86.0  
-
-0.2  
Fair value adjustments taken to  
equity, hedging instruments  
-
-4.8  
-
-
-24.0  
-
-
-
-4.8  
-24.0  
-14.6  
-
Acquisition of own shares  
Dividends paid  
4.3  
-
-
-
-
-
-
-14.6  
-1.2  
56.2  
4.3  
Dividends related to treasury shares  
Proposed dividend  
-
-
-
1.2  
4.4  
4.4  
5.2  
-
-
-
-
-
-56.2  
-4.3  
-
Proposed dividend on treasury shares  
Share-based payment  
-
-
-
-
-
0.9  
-
0.9  
Changes in equity  
-0.2  
6.5  
-4.8  
4.1  
31.7  
364.0  
-27.9  
467.4  
44.7  
60.5  
43.5  
902.5  
Equity at 31 December 2020  
—
—
—
ANNUAL REPORT 2021 NORDEN  
118  
FINANCIAL STATEMENTS  
PARENT  
 
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS  
SECTION 1  
SECTION 4  
SIGNIFICANT ACCOUNTING POLICIES AND SIGNIFICANT  
ACCOUNTING ESTIMATES AND JUDGEMENTS  
CAPITAL STRUCTURE AND RISKS  
4.1 Financial risk management  
4.2 Derivatives  
126  
126  
126  
127  
127  
128  
130  
1.1 Summary of significant accounting policies  
120  
4.3 Share capital  
4.4 Proposal of the distribution of profit  
4.5 Loans and bonds  
SECTION 2  
INCOME STATEMENT  
2.1 Revenue information  
2.2 Staff costs and remuneration  
2.3 Depreciation  
4.6 Leases - lessee  
121  
121  
121  
122  
122  
4.7 Leases - lessee and COAs  
2.4 Financial income and expenses  
2.5 Taxation  
SECTION 5  
OTHER NOTES  
5.1 Fees to auditor appointed at the general meeting 131  
5.2 Share-based payment  
131  
131  
131  
SECTION 3  
5.3 Unrecognised contingent liabilites  
5.4 Related party disclosures  
INVESTED CAPITAL AND WORKING CAPITAL  
3.1 Tangible assets  
123  
125  
125  
3.2 Investments in subsidiaries  
3.3 Investments in joint ventures  
—
—
—
PARENT 119  
NORDEN  
ANNUAL REPORT 2021  
FINANCIAL STATEMENTS  
 
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS  
Section 1  
Significant accounting policies and  
significant accounting estimates and judgements  
In the balance sheet under the items “Investments  
in subsidiaries” and “Investments in joint ventures”,  
the proportional ownership share of the compa-  
nies’ net asset value is recognised.  
Significant accounting policies and significant  
accounting estimates and judgements  
1.1 Summary of significant accounting policies  
120  
1.1 Summary of significant accounting  
policies  
The total net revaluation of investments in subsid-  
iaries and joint ventures is transferred through the  
distribution of profits to “Reserve for net revalua-  
tion according to equity method” under equity. The  
reserve is reduced by dividend payments to the  
Parent Company and is adjusted with other chang-  
es in equity in subsidiaries and joint ventures.  
NORDEN prepares the Parent Company Financial  
Statements for Dampskibsselskabet NORDEN A/S  
in accordance with the Danish Financial Statements  
Act applying to enterprises of reporting class D.  
NORDEN has implemented the changes in ac-  
counting policies as mentioned in note 1 “Signifi-  
cant accounting policies and significant accounting  
estimates and judgements” in the Consolidated  
Financial Statements, if applicable under the Dan-  
ish Financial Statements Act. Other changes has  
had no impact in the Parent Company.  
Subsidiaries and joint ventures with negative net  
asset value are recognised at USD 0 million, and a  
provision to cover the negative balance is recog-  
nised if such a present obligation for this purpose  
exists.  
Income statement and balance sheet  
Income/loss from investments in  
subsidiaries and joint ventures  
In the Parent Company’s income statement, the  
proportional share of earnings is recognised  
under the items “Profit/(loss) from investments in  
subsidiaries” and “Profit/(loss) from investments in  
joint ventures”.  
Other accounting policies  
With reference to the provisions of the Danish Fi-  
nancial Statements Act, the Company has refrained  
from preparing a cash flow statement. For this  
information, see the Consolidated Financial State-  
ments for Dampskibsselskabet NORDEN A/S.  
Refer to note 1.1 "Basis of preparation" in the Con-  
solidated Financial Statements for other account-  
ing policies.  
Investments in subsidiaries and joint ventures  
Investments in subsidiaries and joint ventures are  
recognised and measured according to the equity  
method.  
—
—
—
ANNUAL REPORT 2021 NORDEN  
120  
FINANCIAL STATEMENTS  
PARENT  
 
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS  
2.1 Revenue information  
Section 2  
Asset  
Dry  
Tanker  
Elimi-  
nations  
Income statement  
Amount in USD million  
Management Operator Operator  
Total  
2.1 Revenue information  
2.2 Staff costs and remuneration  
2.3 Depreciation  
121  
121  
121  
122  
122  
2021  
Revenue  
360.7  
318.6  
3,015.4  
1,911.8  
331.7  
415.9  
-318.2  
3,389.6  
2.4 Financial income and expenses  
2.5 Taxation  
2020  
Revenue  
-247.3  
2,399.0  
For further details on each segment please refer to note 2.1 in the Group Financial Statements.  
2.2 Staff costs and remuneration  
Amount in USD million  
2021  
2020  
Wages and salaries  
70.3  
2.1  
50.0  
2.3  
Pensions – defined contribution plans  
Other social security costs  
Share-based payment  
Total  
0.5  
0.4  
0.9  
0.9  
73.8  
53.6  
Average number of employees  
285  
219  
Staff costs and average number of employees exclude employees on T/C vessels. For remuneration of the  
Executive Management and the Board of Directors, refer to note 2.3 "Staff costs and remuneration" in the  
Consolidated Financial Statements and to note 5.3 "Share-based payment" in the Consolidated Financial  
Statements.  
2.3 Depreciation  
Amount in USD million  
2021  
2020  
Right-of-use assets, cf. note 4.6  
Property and equipment, cf. note 3.1  
Total  
310.4  
0.6  
185.7  
0.7  
311.0  
186.4  
—
—
—
PARENT 121  
NORDEN  
ANNUAL REPORT 2021  
FINANCIAL STATEMENTS  
 
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS  
2.4 Financial income and expenses  
Amount in USD million  
2021  
2020  
Interest income  
0.2  
-
0.8  
0.5  
2.1  
3.4  
Fair value adjustment, cross currency swaps  
Exchange rate adjustment  
Total financial income  
-
0.2  
Interest costs  
5.2  
0.1  
2.5  
-
Fair value adjustment, cross currency swaps  
Interest expenses on lease liabilities  
Total financial expenses  
28.3  
33.6  
22.6  
25.1  
2.5 Taxation  
Amount in USD million  
2021  
2020  
Tax on the results for the year  
Adjustment of tax regarding previous years  
Total  
5.3  
-0.8  
4.5  
6.4  
-0.9  
5.5  
Latest, the Company entered the Danish tonnage tax regime for a binding 10-year period from 2021. The  
Danish Group companies are jointly and severally liable for the tax on the Group's jointly taxed income in  
Denmark.  
—
—
—
ANNUAL REPORT 2021 NORDEN  
122  
FINANCIAL STATEMENTS  
PARENT  
 
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS  
3.1 Tangible assets  
Section 3  
Prepayments  
on vessels  
and new  
Invested capital and working capital  
3.1 Tangible assets  
123  
125  
125  
Property and  
Vessels equipment  
Amount in USD million  
buildings  
Total  
3.2 Investments in subsidiaries  
3.3 Investments in joint ventures  
2021  
Cost at 1 January  
Transferred during the year  
Additions for the year  
Cost at 31 December  
-
23.3  
-
53.2  
-
13.5  
-23.3  
93.2  
83.4  
66.7  
-
1.3  
54.5  
94.5  
161.2  
23.3  
Depreciation at 1 January  
Depreciation for the year  
Depreciation at 31 December  
-
-
-
-5.2  
-0.6  
-5.8  
-
-
-
-5.2  
-0.6  
-5.8  
Carrying amount at 31 December  
23.3  
48.7  
83.4  
155.4  
A vessel has been sold to third parties with a repurchase option. NORDEN entered into lease contracts at the  
same time. This transaction was treated as a financing transaction and the received proceeds are part of the  
loans.  
No amounts insured on vessels.  
—
—
—
PARENT 123  
NORDEN  
ANNUAL REPORT 2021  
FINANCIAL STATEMENTS  
 
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS  
3.1 Tangible assets – continued  
Prepayments  
on vessels  
and new  
Capital commitments  
The Company has entered into agreements for future delivery of newbuildings  
and declared purchase options, etc. The remaining contract amount is payable as follows:  
Property and  
Vessels equipment  
Amount in USD million  
buildings  
Total  
Amount in USD million  
2021  
2020  
2020  
Cost at 1 January  
Transferred to subsidiary  
Additions for the year  
Cost at 31 December  
781.3  
53.0  
-
16.1  
-16.1  
13.5  
13.5  
850.4  
-797.4  
13.7  
Within 1 year  
Between 2 and 3 years  
After 3 years  
Total  
32.3  
45.0  
95.3  
-
-781.3  
-
-
-
-
0.2  
53.2  
66.7  
32.3  
140.3  
Depreciation at 1 January  
Transferred to subsidiary  
Depreciation for the year  
Depreciation at 31 December  
-153.1  
-4.5  
-
-
-
-
-
-157.6  
153.1  
-0.7  
153.1  
-
-
-0.7  
-5.2  
-5.2  
Impairment losses at 1 January  
Transferred to subsidiary  
-36.0  
36.0  
-
-
-
-
-
-
-
-36.0  
36.0  
-
Impairment losses at 31 December  
Carrying amount at 31 December  
-
48.0  
13.5  
61.5  
—
—
—
ANNUAL REPORT 2021 NORDEN  
124  
FINANCIAL STATEMENTS  
PARENT  
 
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS  
3.2 Investments in subsidiaries  
3.3 Investments in joint ventures  
Amount in USD million  
2021  
2020  
Amount in USD million  
2021  
2020  
Cost at 1 January  
439.9  
0.1  
23.9  
416.0  
439.9  
Cost at 1 January  
-
-
-
0.2  
-0.2  
-
Additions for the year*  
Cost at 31 December  
Divestments during the year  
Cost at 31 December  
440.0  
Value adjustments at 1 January  
Share of result for the year  
363.9  
40.4  
332.5  
31.9  
-0.5  
-
Value adjustments at 1 January  
0.1  
-0.2  
-
-0.2  
0.1  
0.2  
0.1  
-
Share of result for the year  
Depreciation for the year internal profit/loss  
Dividends received  
-0.5  
Divestments during the year  
-157.5  
246.3  
Value adjustments at 31 December  
Transferred to other payables due to negative equity  
-0.1  
0.1  
Value adjustments at 31 December  
363.9  
Carrying amount at 31 December  
686.3  
803.8  
Carrying amount at 31 December  
-
0.1  
* In 2021, the Company has established a new subsidiary “NORDEN Gabon A/S”.  
Investments in joint ventures comprise:  
Ownership Ownership  
To see the overview of the subsidiaries, refer to note 5.7 “Group structure” in the Consolidated Financial  
Statements.  
Norden Alrayn Maritime Co. Ltd, Saudi Arabia  
NORDEN SYNERGY Ship Management A/S  
50%  
50%  
50%  
50%  
No significant restrictions apply to distributions from subsidiaries.  
Key figures (100%) for joint ventures are:  
Revenue and other income  
Costs  
3.3  
-3.6  
-0.3  
-0.2  
16.8  
-16.6  
0.2  
Total results  
Share of results of NORDEN  
0.1  
Non-current assets  
0.1  
0.6  
0.4  
-
-
9.1  
-
Current assets  
- Hereof cash and cash equivalents  
Non-current liabilities, debt  
Current liabilities  
-
-0.8  
-0.1  
-
-8.9  
0.2  
0.1  
-
Total carrying amount  
Share of carrying amount of NORDEN  
Transferred to other payables due to negative equity  
Carrying amount of NORDEN  
-
-
0.1  
No significant restrictions apply to distributions from joint ventures.  
—
—
—
PARENT 125  
NORDEN  
ANNUAL REPORT 2021  
FINANCIAL STATEMENTS  
 
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS  
4.1 Financial risk management  
Section 4  
Refer to note 4.1 “Financial risk management” in the Consolidated Financial Statements.  
Capital structure and risks  
4.1 Financial risk management  
4.2 Derivatives  
126  
126  
126  
127  
127  
128  
130  
4.2 Derivatives  
Refer to note 4.2 “Derivatives” in the Consolidated Financial Statements.  
4.3 Share capital  
4.4 Proposal of the distribution of profit  
4.5 Loans and bonds  
4.3 Share capital  
The share capital consists of 39,200,000 shares of a nominal value of DKK 1 each. No shares are subject to any  
special rights or restrictions.  
4.6 Leases - lessee  
4.7 Leases - lessor and COAs  
Treasury shares  
Number  
of shares  
Nominal value  
(DKK’000)  
% of  
share capital  
2021  
2020  
2021  
2020  
2021  
2020  
Treasury shares as of 1 January  
Acquisition  
2,894,467 2,888,467  
1,481,230 1,506,000  
2,894  
1,481  
2,888  
1,506  
7.11  
3.78  
6.84  
3.70  
Disposal due to exercise of  
share options  
-438,758  
-
-439  
-
-1.12  
-3.55  
-
Capital reduction  
-1,500,000 -1,500,000  
-1,500  
-1,500  
-3.43  
Treasury shares as  
of 31 December  
2,436,939 2,894,467  
2,436  
2,894  
6.22  
7.11  
The Company is authorised by the annual general meeting to acquire a maximum of 3,920,000 treasury  
shares, equal to 10% of the share capital. Treasury shares are acquired for the purpose of hedging in connec-  
tion with sharebased payment, see note 5.3 "Share-based payment" and in connection with share buy-back  
programmes.  
At 1 January 2021, the Group had a total of 37,805,533 outstanding shares of DKK1 each and at 31 December  
2021, a total of 36,763,061 outstanding shares of DKK 1 each.  
NORDEN initiated a share buy-back programme in 2021. The programme runs from 4 November 2021 up to  
and including no later than end February 2022.  
The share buy-back programme is initiated pursuant to the authorisation granted to the Board of Directors,  
which entitles NORDEN to acquire treasury shares at a nominal value not exceeding 10% of the share capital  
at the market price applicable at the time of the acquisition with a deviation of up to 10%. The purpose of the  
share buy-back programme is to adjust the capital structure of the Group. A maximum of 3,920,000 shares can  
be acquired.  
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—
—
ANNUAL REPORT 2021 NORDEN  
126  
FINANCIAL STATEMENTS  
PARENT  
 
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS  
4.3 Share capital - continued  
4.5 Loans and bonds  
Amount in USD million  
2021  
2020  
Since the 2021 share buy-back programme were initiated up until year end 2021, the total number of acquired  
shares is 953,500 at a total amount of DKK 148,372,405. Acquired shares in 2021 related to share buy-back  
programme 2020 amounts to 527,730 at a total amount of DKK 50,665,055.  
Repayment within 1 year  
Repayment between 1 to 5 years  
Repayment over 5 years  
Total  
4.6  
134.0  
6.3  
4.6  
16.4  
7.7  
In 2021 shares were acquired at an average price of DKK 136 per share with prices ranging from DKK 110 to  
DKK 169. The total cost of DKK 212,272,115 was deducted from retained earnings.  
144.9  
28.7  
In relation to the share buy-back programme, NORDEN implemented a capital reduction of nom. DKK  
1,500,000 during the year. The share capital at the end of 2021 was thus nom. DKK 39,200,000 compared to  
DKK 40,700,000 in the beginning of the year.  
Mortgages and security  
Amount in USD million  
2021  
2020  
As securities for loans  
- number of buildings pledged  
- carrying amount  
22.8  
2.0  
28.7  
2.0  
4.4 Proposal for the distribution of profit  
Amount in USD million  
2021  
2020  
47.0  
14.4  
47.4  
15.7  
- mortgaged amount  
Reserve for net revaluation according to the equity method  
-117.8  
107.1  
215.2  
204.5  
31.7  
60.5  
-6.2  
Proposed dividends  
Retained earnings  
Total  
The subsidiaries guarantees debt in the Parent Company amounting to USD 14 million (2020: USD 18 million)  
at the reporting date.  
86.0  
Proposed dividend per share, DKK  
18.0  
9.0  
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—
—
PARENT 127  
NORDEN  
ANNUAL REPORT 2021  
FINANCIAL STATEMENTS  
 
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS  
4.6 Leases - lessee  
This note provides information for leases where the Company is a lessee.  
Amounts recognised in the income statement  
Amount in USD million  
2021  
2020  
Amounts recognised in the balance sheet  
Set out below are the carrying amounts of right-of-use assets, receivables from subleasing  
and lease liabilities recognised and the movements during the period:  
Expenses related to the service component of right-of-use assets  
(included in vessel operating costs)  
261.5  
200.0  
819.6  
Expenses relating to short-term leases (including in vessel operating costs)  
1,311.4  
Amount in USD million  
2021  
2020  
Depreciation of right-of-use assets (including in depreciation,  
amortisation and impairment losses)  
310.6  
28.3  
185.7  
22.6  
Right-of-use assets  
Cost at 1 January  
Additions  
Interest expenses of lease liabilities (included in financial expenses)  
701.5  
482.7  
69.3  
401.9  
306.9  
31.1  
Lease commitments and options (excluding the non-service component)  
Balance sheet  
Remeasurements  
Disposals  
-118.3  
-38.5  
701.4  
At year end, the Company has entered lease agreements with future commencement date, which will affect  
the balance sheet as follow, when the time-chartered vessels will be delivered, and the Company obtains con-  
trol of the asset. The minimum lease payments excluding the non-lease components amounts to:  
Cost at 31 December  
1,135.2  
Depreciation at 1 January  
Depreciation  
-267.1  
-310.4  
101.5  
-117.6  
-185.7  
36.2  
Asset  
Dry  
Tanker  
Amount in USD million  
Management Operator Operator  
Total  
Disposal  
Depreciation at 31 December  
-476.0  
-267.1  
2021  
Within 1 year  
Between 1 and 5 years  
More than 5 years  
Total  
99.0  
15.4  
-
6.8  
-
12.8  
118.6  
15.4  
-
Carrying amount at 31 December  
659.2  
434.3  
-
-
-
Lease liabilities  
114.4  
6.8  
12.8  
134.0  
Lease liabilities at 1 January  
Additions  
496.7  
502.2  
71.6  
327.9  
340.6  
35.8  
Asset  
Dry  
Tanker  
Remeasurements  
Instalments  
Amount in USD million  
Management Operator Operator  
Total  
-326.1  
-30.5  
-205.4  
-2.2  
2020  
Disposal  
Within 1 year  
Between 1 and 5 years  
More than 5 years  
Total  
100.8  
35.5  
-
-
-
-
-
-
-
-
-
100.8  
35.5  
-
Lease liabilities at 31 December  
713.9  
496.7  
Non-current  
Current  
Total  
317.7  
396.2  
713.9  
294.8  
201.9  
496.7  
136.3  
136.3  
—
—
—
ANNUAL REPORT 2021 NORDEN  
128  
FINANCIAL STATEMENTS  
PARENT  
 
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS  
4.6 Leases – lessee - continued  
Some leases include an option to be extended for 1 additional year at a time for up to 3 years. The exercise  
of the options is based on an individual assessment. If all available extension options year end where excised  
when possible, the right-of-use asset and corresponding lease liability would increase with the following  
amounts in each future year (undiscounted and excluding non-lease component).  
Income statement  
At year end, the Company has entered lease agreements of vessels, which will have the following impact in the  
income statement related to the service-component (daily running costs):  
Asset  
Dry  
Tanker  
Amount in USD million  
Management Operator Operator  
Total  
Asset  
Dry  
Tanker  
Amount in USD million  
Management Operator Operator  
Total  
2021  
2021  
Within 1 year  
Between 1 and 5 years  
More than 5 years  
Total  
182.0  
286.0  
4.9  
75.5  
29.6  
-
19.8  
10.2  
-
277.3  
325.8  
4.9  
Within 1 year  
Between 1 and 5 years  
More than 5 years  
Total  
25.6  
301.5  
153.0  
480.1  
10.2  
23.1  
-
21.3  
18.7  
-
57.1  
343.3  
153.0  
553.4  
472.9  
105.1  
30.0  
608.0  
33.3  
40.0  
Asset  
Dry  
Tanker  
Amount in USD million  
Management Operator Operator  
Total  
Asset  
Dry  
Tanker  
Amount in USD million  
Management Operator Operator  
Total  
2020  
Within 1 year  
Between 1 and 5 years  
More than 5 years  
Total  
170.3  
321.7  
9.4  
10.8  
2.1  
-
5.8  
-
186.9  
323.8  
9.4  
2020  
Within 1 year  
Between 1 and 5 years  
More than 5 years  
Total  
31.2  
281.4  
156.4  
469.0  
1.4  
-
2.8  
-
35.4  
281.4  
156.4  
473.2  
-
501.4  
12.9  
5.8  
520.1  
-
-
1.4  
2.8  
Leases may also include purchase options, typically exercisable as from the end of the third year to the expiry  
of the period of the extension. Exercise of an purchase option on an individual vessel is based on an individual  
assessment. On a few leases, the payment is linked to a freight index. For information on the Group’s charter  
contracts with purchase option, see the section "Asset Management" in the Management’s Review.  
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—
PARENT 129  
NORDEN  
ANNUAL REPORT 2021  
FINANCIAL STATEMENTS  
 
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS  
4.7 Leases – lessor and COAs  
This note provides information for leases where the Company is a lessor.  
COAs and operating lease income  
At year end, the Company had entered into COAs with customers amounting to:  
Amounts recognised in the balance sheet  
Set out below are the carrying amounts of receivables from subleasing recognised and the movements during  
the period:  
Amount in USD million  
2021  
2020  
Within 1 year  
454.5  
79.6  
228.6  
74.1  
Between 1 to 2 years  
Between 2 and 3 years  
Between 3 and 4 years  
Between 4 and 5 years  
Later than 5 years  
Total  
Amount in USD million  
2021  
2020  
58.3  
55.1  
Receivables from subleasing  
Receivables from subleases at 1 January  
Additions for the period  
Disposals  
51.4  
51.3  
39.1  
40.0  
-15.6  
-0.6  
20.8  
32.3  
-
29.9  
46.7  
68.6  
93.5  
742.3  
549.3  
Remeasurements  
4.6  
Payments received  
-29.5  
33.4  
-18.6  
39.1  
The Company has operating lease income amounting to:  
Amount in USD million  
Receivables from subleases at 31 December  
2021  
2020  
Non-current  
Current  
Total  
9.1  
24.3  
33.4  
22.5  
16.6  
39.1  
Within 1 year  
213.1  
136.9  
63.9  
20.2  
0.5  
Between 1 to 2 years  
Between 2 and 3 years  
Between 3 and 4 years  
Between 4 and 5 years  
Later than 5 years  
Total  
47.2  
14.3  
-
Amounts recognised in the income statement  
-
-
-
Revenue from sublease financial income (included in revenue)  
Gain/loss on derecognised right-of-use assets (included in revenue)  
1.8  
2.1  
3.8  
-
16.4  
274.6  
221.5  
The above amounts regarding operation lease income comprise the agreed time charter rates. The lease  
and service components will be recognised as revenue under the same pattern of transfer to the customer.  
Separate disclosure of the lease components and the service income components has not been provided as it  
is impracticable to establish this disclosure.  
Below the maturity analysis for sublease receivables based on contractual  
undiscounted payments:  
Amount in USD million  
2021  
2020  
Within 1 year  
28.1  
9.2  
-
18.1  
23.4  
-
Between 1 and 5 years  
More than 5 years  
Total  
37.3  
41.5  
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—
—
ANNUAL REPORT 2021 NORDEN  
130  
FINANCIAL STATEMENTS  
PARENT  
 
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS  
5.1 Fees to auditor appointed at the general meeting  
Section 5  
Amount in USD million  
2021  
2020  
Other notes  
5.1 Fees to auditor appointed at the general meeting 131  
“Other external costs” include the following fees to  
PricewaterhouseCoopers:  
Statutory audit  
5.2 Share-based payment  
131  
131  
131  
5.3 Unrecognised contingent liabilities  
5.4 Related party disclosures  
0.4  
-
0.7  
0.1  
0.2  
0.1  
1.1  
Other assurance services  
Tax consultancy  
Other services  
0.4  
-
Total  
0.8  
The fee for non-audit service performed by PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab is  
USD 0.4 million (2020: USD 0.4 million) and comprise tax advisory services and advisory services.  
5.2 Share-based payment  
Refer to note 5.3 “Share-based payment” in the Consolidated Financial Statements.  
5.3 Unrecognised contingent liabilities  
The Company guarantees the subsidiaries’ lease liabilities towards external counterparties and the subsidiar-  
ies’ newbuilding liabilities. The Groups total lease liabilities and new building commitments are disclosed in  
note 4.7 "Leases - lessee" and note 3.1 "Tangible assets" respectively.  
The Company has issued guarantees for loans etc. raised by subsidiaries of USD 274 million.  
The Company has provided financial support to NORDEN Shipping (Singapore) Ltd. to enable the company to  
meet its liabilities regards to POLAR Navigation Ltd and NORD SUMMIT Pte. Ltd.  
Other contingencies are disclosed in the Group’s note 5.4 "Unrecognised contingent assets and liabilities".  
5.4 Related party disclosures  
Refer to note 5.5 “Related party disclosures” in the Consolidated Financial Statements.  
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PARENT 131  
NORDEN  
ANNUAL REPORT 2021  
FINANCIAL STATEMENTS  
 
OTHER  
133 Definitions of key figures and financial ratios  
134 Shipping terms and abbreviations  
135 Company information  
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ANNUAL REPORT 2021  
NORDEN  
 
DEFINITIONS OF KEY FIGURES AND FINANCIAL RATIOS  
Key figures and financial ratios are computed in accordance with “Recommendations and Financial Ratios”  
issued by the Danish Society of Financial Analysts. However, NORDEN deviates from the recommendation in  
the calculation of EBITDA as the Group does not recognise gains and losses from sale of vessels in EBITDA.  
This item is included in the operating profit (EBIT).  
The ratios listed in the Key figures and financial ratios section are calculated as follows:  
Adjusted Result for the year  
Book value per DKK 1 share  
=
=
Profit/loss for the year adjusted for profit/loss from sale of vessels etc.,  
including adjustment for sale of vessels in joint ventures  
Net profit or loss per DKK 1 share = Profit/loss for the year  
Number of shares at year-end, excluding treasury shares  
Year-end equity  
Number of shares at year-end, excluding treasury shares  
Payout ratio  
=
=
=
=
Dividend, excluding treasury shares x 100  
Profit/loss for the year  
Contribution margin  
Dividend yield  
=
=
Revenue + other operating income less vessel operating costs  
Price/book value  
Share price at year-end per DKK 1 share  
Book value per DKK 1 share  
Dividend per share x 100  
Share price  
Profit from operations (EBIT)  
Return on equity in % (ROE)  
Earnings Before Interest and Tax, defined as profit/loss for the year  
before financial income, financial expenses and tax  
EBITDA  
=
Earnings Before Interest, Tax, Depreciation and Amortisation, defined as  
profit/loss for the year before depreciation, amortisation and impairment  
losses, profit/loss from sale of vessels etc., share of profit/loss of joint  
ventures, financial income, financial expenses and tax  
Profit/loss for the year x 100  
Average equity  
Return on invested capital (ROIC) = Profit/loss from operations x 100  
Average invested capital  
EBITDA ratio  
Equity ratio  
=
=
EBITDA x 100  
Revenue  
Share price at year-end  
per DKK 1 share  
=
=
The last-quoted average price on Nasdaq Copenhagen  
for all trade in the company share at the reporting date  
Equity at year-end x 100  
Total assets  
Total shareholder return  
The total return of a share to an investor based on share price  
performance and dividends. Dividends are assumed to have  
been reinvested in the share. Return is based on USD  
Invested capital  
=
=
Equity + net interest-bearing debt at year-end  
Net interest-bearing debt  
Interest-bearing debt less cash and securities at year-end, defined as  
loans (current and non-current) plus lease liabilities (current and non-  
current) plus bonds less securities and cash and cash equivalents  
USD exchange rate at year-end  
=
The USD exchange rate quoted by the National Bank  
of Denmark at year-end  
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DEFINITIONS OF KEY FIGURES AND FINANCIAL RATIOS 133  
NORDEN  
ANNUAL REPORT 2021  
OTHER  
 
SHIPPING TERMS AND ABBREVIATIONS  
B
Baltic Dry Index (BDI) Index of the dry cargo rate  
development on selected routes for Handysize,  
Supramax, Panamax and Capesize.  
F
FFA (Forward Freight Agreement) Forward  
agreement to purchase or sell the transport of  
cargo for a particular type of vessel and route at  
a predetermined price.  
Port call countries The number of countries  
where at least one port call has been made by  
NORDEN operated vessels, excluding time-  
chater out vessels.  
V
Vessel days Total number of days with available  
vessel capacity.  
Vetting Collective term for the many kinds of  
inspections of product tankers – including SIRE  
inspections – which the oil companies carry out  
themselves or demand to have carried out.  
Bunker Fuel used by the vessels.  
Forward rate Market expectations for future rate  
levels.  
Purchase option A right, but not an obligation, to  
purchase a vessel at an agreed price.  
Bunker hedging Forward agreement to purchase  
or sell bunker oil at a predetermined price.  
VLCC Very large crude carrier.  
H
I
Handysize Bulk carrier of 28,000-39,000 dwt.  
capacity or product tanker of 36,000-40,000 dwt.  
capacity.  
S
SIRE (Ship Inspection Report Programme)  
The oil companies’ inspection of the safety and  
operational standard of the product tankers.  
C
Charter party Overall term for contracts in  
shipping, including COAs (see COA).  
COA (Contract of Affreightment/Cargo  
Contract) Agreement to transport cargo for a  
predetermined period – 3 months, 5 years, 10  
years, etc. – and at a predetermined price per  
tonne.  
Spot market Day-to-day market for cargo  
contracts.  
IMO (International Maritime Organisation)  
Shipping organisation under the UN.  
Supramax Bulk carrier of 50,000-64,000 dwt.  
capacity.  
IMOS (Integrated Maritime Operating System)  
Shipping system which supports chartering,  
operations and accounting related functions for  
NORDEN and Norient Product Pool’s fleet of dry  
cargo and product tanker vessels.  
Commercial management Agreement to  
operate a vessel on the account and risk of the  
shipowner.  
T
T/C (Time charter) Lease of a vessel whereby the  
vessel is hired out for a short or long period.  
Coverage Securing employment of a vessel for a  
longer period of time (see spot market).  
T/C equivalent (Time charter equivalent) Freight  
revenues less bunker consumption and port  
charges.  
M
O
P
MR (Medium range) Product tanker of 46,000-  
52,000 dwt. capacity.  
D
Demurrage Charge payable by the charterers of  
a vessel on failure to load or discharge the vessel  
within the time agreed.  
Technical management Agreement to manage  
a vessel’s technical operations and crew at the  
account and risk of the shipowner.  
Operator activities Combination of cargoes and  
available vessels in the market.  
Dwt. (Deadweight tonne) A measure of a vessel’s  
cargo carrying capacity.  
Tonne-mile A measure of demand for capacity.  
Calculated as the freight amount times the  
transport distance in nautical miles.  
Panamax Bulk carrier of 75,000-93,000 dwt.  
capacity – largest vessel type to pass the Panama  
Canal.  
Tramp shipping Voyages without fixed routes,  
which is characteristic of the dry cargo and tanker  
markets, which NORDEN operates in.  
E
EEOI (Energy Efficiency Operational Indicator)  
Measurement of efficiency defined as the amount  
of CO2 emitted per tonne of cargo transported 1  
mile.  
Pool Group of vessels with different owners but  
commercially operated together.  
Extension option A right, but not an obligation,  
to extend a time-chartered vessel contract at an  
agreed price.  
Port State Control The countries’ technical  
inspection of foreign vessels calling at their ports.  
Port calls The number of ports called by  
NORDEN's operated vessels, excluding time-  
charter out vessels.  
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ANNUAL REPORT 2021 NORDEN  
134  
OTHER  
SHIPPING TERMS AND ABBREVIATIONS  
 
COMPANY INFORMATION  
Company information  
Dampskibsselskabet NORDEN A/S  
52 Strandvejen  
DK-2900 Hellerup  
Telephone: +45 3315 0451  
Board of Directors  
Annual general meeting  
Klaus Nyborg, Chairman  
Johanne Riegels Østergård, Vice Chairman  
Karsten Knudsen  
The annual general meeting will take place  
on Thursday 24 March 2022 at 2.00 p.m.  
and will be held as a hybrid event with both  
physical and virtual attendance possible  
Thomas Intrator  
Helle Østergaard Kristiansen  
Stephen John Kunzer  
CVR no.: 67 75 89 19  
Financial year: 1 January - 31 December  
Municipality of domicile: Gentofte  
Christina Lerchedahl Christensen  
Henrik Røjel  
Benedicte Hedengran Wegener  
Website: norden.com  
Email: direktion@norden.com  
Executive Management  
Jan Rindbo, CEO  
Martin Badsted, CFO  
Auditor  
PricewaterhouseCoopers  
Statsaut. Revisionspartnerselskab  
44 Strandvejen  
DK-2900 Hellerup Denmark  
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COMPANY INFORMATION 135  
NORDEN  
ANNUAL REPORT 2021  
OTHER  
 
Since 1871, NORDEN has built a reputation for providing stability  
in an industry defined by volatility. We leverage the intelligence  
we have gathered, acquired and developed to deliver solutions  
that are tailored to the realities of the marketplace – delivering  
results our customers and investors can rely on.  
Dampskibsselskabet NORDEN A/S
52 Strandvejen
DK-2900 Hellerup
Denmark
Telephone: +45 3315 0451  
norden.com  
CVR no. 67 75 89 19