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Interim Financial Report
Third Quarter 2024
NORDEN
5
Strategic scorecard
Update on the Strategic Scorecard
Cash flow from investing activities was USD -99 million in
the third quarter (USD -35 million), mainly as a result of large
prepayments on newbuildings of USD -91 million.
The value creation based on the return on invested capital
(ROIC) has in the past five years been 23% per year and 15% in
the last twelve months, outperforming our target of average min.
12% per year over a rolling five year period. The positive returns
confirms the long-term value-creation from an agile and flexible
business model, despite short-term fluctuations in earnings.
Achieved
Target
Value creation
Return on Invested Capital (ROIC)
- avg. Q4 2019-Q3 2024
Rolling five years
Average a min of
Cash flow from financing activities was USD -129 million (USD
-166 million), due to cash distributions to shareholders through
dividends and share buy-backs as well as instalments on lease
liabilities.
12%
23%
per year
Growing the business in a profitable way is a core part of our
strategy and we aim at growing the number of vessel days by 5%
CAGR per year. In the last twelve months we have had a CAGR of
6%, just above our target of 5%.
Free cash flow was USD -61 million (USD 96 million), mainly
impacted by the lower earnings and investing activities,
including the acqusition of Norlat Shipping. Free cash flow for
the first nine months was USD -267 million (USD 235 million).
Growth
Total number of vessel days
- baseline Q4 2018 - Q3 2019
Rolling five years:
CAGR a min. of
5%
CAGR 6%
per year
During the quarter, the profitability in Freight Services & Trading
was affected by continued high charter costs and weak tanker
spot rates, resulting in an average margin per day for the last
twelve months of USD -359 per day, well below the min. target of
USD 500 per day. However, measuring the development over the
past five years, the average margin has been USD 1,147 per day
and thus well above our long-term target.
During the third quarter of 2024, cash and cash equivalents
decreased to USD 194 million (USD 557 million end FY 2023).
Net interest-bearing debt increased to USD 464 million
compared to USD 45 million by end FY 2023, mainly as a result
of increased CAPEX spending.
Profitability
Rolling five years:
Average a min. of
Margin per day in FST
- avg. per day Q4 2019-Q3 2024
USD 500
USD 1,147
per day
At end Q3 2024, NORDEN had committed credit facilities of USD
200 million, of which USD 120 million were undrawn and directly
accessible.
In regards to decarbonisation, we have reduced EEOI by 14% by
the end of the third quarter compared to our baseline in 2022,
and we are on track to deliver on the 2030 target of a reduction
of min. 16% in EEOI. We continue to focus on optimising and
renewing our fleet by investing in fuel efficiency through paint
upgrades, hull cleanings and other initiatives.
Decarbonisation
Reduction in emission
intensity (EEOI)
Target by 2030 latest:
Reduction a min. of.
NORDEN shareholders’ share of equity as of end Q3 2024
was USD 1,253 million (USD 1,198 million end FY 2023),
reflecting the positive net profit for the period and allocation to
shareholders during the quarter. The solvency ratio was 53% by
end Q3 2024, compared to 51% by end FY 2023.
– baseline FY 2022
16%
14%
While targeting total shareholder returns (TSR) of min. 10% per
year on average, the returns in the past twelve months have
been negative 22%. In the past five years, NORDEN has however
generated a positive return of 38% per year, which highlights
the long-term value creation and the benefit of our diversified
business model.
Shareholder returns
Rolling five years:
Average a min. of
Total shareholder returns (TSR)
- avg. Q4 2019-Q3 2024
10%
38%
per year
