XCSE:DNORD ESEF Annual Report
DAMPSKIBSSELSKABET NORDEN A/S (XCSE:DNORD)
ESEF Annual Report
2022-10-27
For: 2022-06-30
View Original
Added on
September 23, 2026
ANNOUNCEMENT NO. 157 – 18 August 2022
INTERIM REPORT
SECOND QUARTER
AND FIRST HALF-YEAR 2022
52, STRANDVEJEN, DK-2900 HELLERUP, DENMARK
CVR NUMBER 67758919
KEY POINTS
SECOND QUARTER 2022
Results
Business highlights
Guidance
•
•
Profit for the period: USD 179 million
(Q2 2021: USD 32 million).
•
•
•
•
•
Trading focus adding value - significant shift in market
exposure from dry cargo to product tankers across
both business units.
•
•
NORDEN expects profit for the year in the range
of USD 560-640 million, in line with announced
guidance in the beginning of August.
Profit/loss for the period per business unit*:
- Assets & Logistics: USD 26 million
(USD 2 million).
- Freight Services & Trading: USD 153 million
(USD 30 million).
Net asset value (NAV) of Assets & Logistics (including
NORDEN’s cash position) increased DKK 100 per
share during Q2.
Based on the strong cash flows and favourable
earnings outlook, the Board has decided to pay
out an interim dividend for 2022 of DKK 30 per share
to be distributed to shareholders at end of August.
The interim dividend will count as part of the dividend
policy of paying out minimum 50% of the net full-year
result.
Positive development in Assets & Logistics driven by
higher tanker values and a fully covered dry cargo
position until end of 2023 at profitable rates.
•
•
Profit for H1: USD 296 million (H1 2021: USD 17 mil-
lion), corresponding to earnings per share of DKK 57.
Return on equity: 52% in Q2 (15%), 47% in H1 (4%).
In addition, substantial market value has been built
up also in Freight Services & Trading, which is
expected to benefit earnings in H2 2022 and 2023.
•
In addition, NORDEN will initiate a share buyback
programme of USD 40 million, which will run until the
beginning of November.
* Q2 2021 comparison based on Asset Management and combined
Dry Operator and Tanker Operator profit/loss for the period, respectively.
Record margins in Freight Services & Trading due to
high exposure towards surging MR tanker rates and
a short position in dry cargo, benefitting from falling
rates.
“Fantastic second quarter result based on a significant shift in market exposure from dry cargo to product tankers. This has
enabled NORDEN to capitalise on the exceptional product tanker rates, while also generating value in a weakening dry cargo
market from an extensive cargo and cover portfolio. This highlights our trading ability and proactive risk management, which
enables us to create value in both rising and falling markets”.
CEO Jan Rindbo
—
—
NORDEN
INTERIM FINANCIAL REPORT SECOND QUARTER AND FIRST HALF-YEAR 2022
2
KEY FIGURES
AND RATIOS FOR NORDEN
Q2
Q2
H1
H1
FY
Q2
Q2
H1
H1
FY
Amount in USD million
2022
2021
2022
2021
2021
2022
2021
2022
2021
2021
Income statement
Share-related key figures and
financial ratios
Revenue
1,420.1
372.1
313.9
-0.2
854.7
2,508.0
619.8
525.1
28.2
-
1,458.6
204.6
163.7
-9.2
3,551.8
649.6
532.2
7.7
No. of shares of DKK 1 each
(including treasury shares)
Contribution margin
EBITDA
129.3
37,000,000 39,200,000 37,000,000 39,200,000 39,200,000
105.4
No. of shares of DKK 1 each
(excluding treasury shares)
Profit/loss from sale of vessels etc.
Profit/loss from sale of vessels in JV
-
-
35,487,010 37,660,561 35,487,010 37,660,561 36,763,061
1,512,990 1,539,439 1,512,990 1,539,439 2,436,939
-
-
-0.9
Number of treasury shares
Earnings per share (EPS), DKK 3)
Depreciation, amortisation and
impairment losses
36
5
57
3
34
-120.0
195.0
-14.6
-65.0
40.1
-6.4
-227.8
326.5
-27.2
-122.0
32.5
-295.5
245.5
-34.8
Diluted earnings per share
(diluted EPS), DKK 3)
EBIT
36
5
56
3
34
Financial items, net
Profit for the period
-13.0
16.9
Book value per share (excluding treasury
shares) (DKK) 3)
178.7
31.8
295.8
204.5
252
246
115
200
252
246
115
200
170
166
Share price at end of period, DKK
Statement of financial position
Total assets
2,823.9
1,248.5
1,575.4
1,699.1
-450.6
2,060.7
690.6
2,823.9
1,248.5
1,575.4
1,699.1
-450.6
2,060.7
690.6
2,453.5
993.3
Other key figures and financial ratios 4)
EBITDA ratio
ROIC 5)
Equity
22.1%
46.8%
51.5%
44.2%
44,391
716.20
699.15
12.3%
12.0%
15.1%
33.5%
41,982
625.73
616.72
20.9%
39.2%
46.6%
44.2%
86,355
716.20
680.45
11.2%
4.9%
15.0%
17.1%
Liabilities
1,370.1
1,424.7
-734.1
297.3
1,370.1
1,424.7
-734.1
297.3
1,460.2
1,631.0
-637.7
410.7
Invested capital
Net interest-bearing debt
Cash and securities
ROE 5)
4.2%
21.6%
Equity ratio
33.5%
82,435
625.73
617.05
40.5%
566.5
566.5
Total no. of vessel days for the Group
USD/DKK rate at end of the period
Average USD/DKK rate
170,270
656.12
629.18
Cash flows
From operating activities
From investing activities
349.9
-36.9
-13.4
-13.6
502.0
46.3
-65.1
38.6
433.9
2.6
1)
The Energy Efficiency Operational Indicator (EEOI) is a measurement of efficiency and is defined as the amount of CO2
emitted per tonne of cargo transported 1 mile. The calculation of EEOI has changed as of FY2021 onwards, and now also
includes vessels and voyages on T/C-out to third parties. Previously, only own voyages were included.
- hereof investments in property, plant
and equipment
-0.2
0.4
-61.0
-1.1
-92.1
2)
Lost Time Injury Frequency (LTIF) is the frequency a seafarer is unable to work for more than 24 hours per 1 million working
hours. NORDEN has worked closely together with technical management partner Synergy Marine Group to ensure safety
onboard our vessels and makes continuous efforts towards safe working practices during all aspects of the operations.
From financing activities
-165.1
89.3
-434.5
67.5
-261.9
3)
4)
Converted at the USD/DKK rate at end of period.
Environmental and social figures
EEOI (gCO2/tonnes-mile) 1)
LTIF (days per million working hours) 2)
The ratios were computed in accordance with ”Recommendations and Financial Ratios” issued by the Danish Association of
Financial Analysts. However, ”Profit and loss from the sale of vessels, etc.” is not included in EBITDA. Please see definitions
in the section “Definitions of key figures and financial ratios” in the Annual Report for 2021. The figures are adjusted for the
Company´s holding of treasury shares.
9.3
-
9.5
-
9.4
0.4
9.5
0.6
8.6
0.8
5)
Figures are annualised.
—
—
NORDEN
INTERIM FINANCIAL REPORT SECOND QUARTER AND FIRST HALF-YEAR 2022
3
COMMENTS ON THE DEVELOPMENT
OF THE SECOND QUARTER AND FIRST HALF-YEAR 2022
Results
As of 30 June 2022, NORDEN had available liquidity of USD 717 million, which consisted
of USD 567 million in cash and cash equivalents supplemented by USD 150 million in
undrawn credit facilities.
The profit for the second quarter of 2022 amounted to USD 179 million (USD 32 million).
For the first half of 2022, profit amounted to USD 296 million (USD 17 million) of which
profit from vessel sales amounted to USD 28 million (USD -9 million).
Equity and capital allocation
Equity amounted to USD 1,249 million as of 30 June 2022 compared to USD 993 million at
the end of 2021. The development is mainly due to the result for the period and positive
fair value adjustments of cash flow hedges offset by dividends paid and acquisition of
treasury shares.
Both depreciations and financial expenses increased significantly compared to 2021,
which is mainly due to IFRS 16 lease accounting as more timecharter vessels are being
recognised as right-of-use assets and lease liabilities respectively.
Cash flows & liquidity
The strong profit for the period increased the annualised return on equity to 52% for Q2
2022 (15%). For the first half of 2022 the annualised return on equity was 47% (4%).
Cash flow from operating activities for the second quarter of 2022 was USD 350 million
(USD -13 million) driven by the strong profitability and a positive change in working
capital, which was mainly due to settlement of positive fair value adjustments on cash flow
hedges. For the first half of 2022, cash flow from operating activities was USD 502 million
(USD -65 million).
The Board of Directors has decided to pay out an interim dividend for 2022 of DKK 30 per
share. The interim dividend will be paid on 23 August 2022 and will count as part of the
dividend policy of paying out minimum 50% of the net full-year result. The ex-dividend
date for the interim dividend will be 19 August 2022. In addition, NORDEN will initiate
a share buyback programme of USD 40 million, which will run until the beginning of
November.
Profit for the period
Return on Equity
Available liquidity
Cash flow from operations
%
USD million
USD million
USD million
60
50
40
30
20
10
0
180
150
120
90
800
700
600
500
400
300
200
100
0
350
300
250
200
150
100
50
60
30
0
-50
0
Q2
2021
Q3
2021
Q4
2021
Q1
2022
Q2
2022
Q2
2021
Q3
2021
Q4
2021
Q1
2022
Q2
2022
Q2
2021
Q3
2021
Q4
2021
Q1
2022
Q2
2022
Q2
2021
Q3
2021
Q4
2021
Q1
2022
Q2
2022
Note: Quarterly figures are annualised
Cash and securities
Undrawn credit facilities
—
—
NORDEN
INTERIM FINANCIAL REPORT SECOND QUARTER AND FIRST HALF-YEAR 2022
4
MARKET DEVELOPMENTS
Spot rates
Dry cargo market
Product tanker market
USD thousand / day
•
Market development and spot rates
•
Market development and spot rates
80
60
40
20
0
During the first half of Q2, rate levels held out across
Handysize, Supramax and Panamax segments despite altered
trading patterns following sanctions on Russia and less
Chinese activity. As anticipated, spot rates across all vessel
segments started to gradually decline in line with lowered
demand and lower congestion levels starting to show in
China. Meanwhile, coal trade has risen to elevated levels
following high European and Indian demand. Despite spot
rates declining at the end of Q2, average Supramax spot rates
increased by 15% from USD 25,150 in Q1 to USD 28,900 per
day in Q2.
An extraordinary market increase has benefitted all product
tanker vessel types, with average MR spot rates more than
tripling from USD 12,600 to USD 41,500 per day. Low
inventory levels created a tight product tanker market, which
was further exacerbated by sanctions on Russia. This resulted
in longer distances as well as significant increases and
volatility in product tanker rates across Atlantic and Pacific
basins. While commodity demand levels are at normal levels,
the volume of refined oil products transported on water is high
and refineries are operating at high capacity.
Jan-20
Jul-20
Jul-21
Jan-22
Jun-22
Jan-21
Supramax
MR
Source: Baltic Exchange
Asset values
5-year old vessels
USD million
•
•
Period rates and asset prices
•
•
Period rates and asset prices
The 1-year T/C rate for MR Eco vessels increased by 48% to
USD 23,000 per day at the end of Q2. Similarly, asset prices for
5-year MR vessels increased by 15% to almost USD 36 million
at the end of Q2.
The 1-year T/C rates for Supramax vessels decreased by 9%
from USD 27,875 to USD 25,250 per day in line with a lowered
forward curve. Asset prices for 5-year old Supramax vessels
remained stable at USD 31.6 million at end Q2.
40
35
30
25
20
15
Market outlook
Market outlook
The extraordinarily high rate climate for product tankers is
expected to hold up for the rest of 2022, as sanctions continue
to create longer distances and ineffeciencies. Refinery
output levels are projected to stay strong for the remainder
of the year. While any premature phase-out of sanctions
and an economic recession present potential downsides to
the elevated rates, the full effect of current sanctions may
only show itself when enforced at the end of 2022, further
supporting high rates.
Jan-20
Jul-20
Jul-21
Jan-22
Jun-22
Jan-21
MR
Very low visibility ahead in the dry cargo market, yet overall
projections indicate a gradual lowering of market rates for the
remainder of 2022. This is in line with an expected reduction
in global demand and risk of an economic recession. While
China is expected to increase activity, the announced
stimulus is likely insufficient to fully offset the negative global
developments. However, the low orderbook on newbuildings
combined with high coal volumes provide cushioning to any
severe and enduring rate declines.
Supramax
Source: VesselsValue
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—
NORDEN
INTERIM FINANCIAL REPORT SECOND QUARTER AND FIRST HALF-YEAR 2022
5
ASSETS & LOGISTICS
SIGNIFICANT INCREASE IN VALUE OF PORTFOLIO
Results
Business highlights
Assets & Logistics key figures
Amount in
USD million
2022
Q2
2021
Q2 Quarters
Last 4
•
Assets & Logistics generated a profit of USD 26 million for the
quarter (USD 2 million).
•
Realised dry cargo gains and secured downside protection:
- Fully covered dry cargo portfolio for 2022 and 2023 at
profitable rates.
Contribution margin
O/A costs
83.8
-4.5
33.5
54.3
256.0
-14.5
108.7
-3.2
8.5
•
Significant increase in the net asset value (NAV) of the
business unit portfolio (including NORDEN’s net cash position)
to USD 1,868 million or DKK 377 per share. This represents
an increase of USD 383 million or DKK 100 per share driven
primarily by higher tanker values.
- 3 dry cargo vessels sold at 10-year high price levels with
profits to benefit results in H2.
- 7 extension options declared on dry cargo leases.
EBIT
Profit/Loss from sale
of vessels
-0.2
-
44.2
77.2
Profit/loss for the
period
25.6
2.1
•
Optimising tanker portfolio:
- Adding 1 tanker vessel on lease with purchase option.
- Entered into 3 long-term timecharter out contracts on MR
tankers at profitable rates.
•
Market value of both owned and leased vessels at USD 1,390
million at the end of Q2. The market value of owned vessels
exceeded book values by USD 182 million.
Portfolio overview
Dry Cargo Tankers
Total
•
•
Upward trend in product tanker period rates and asset values
providing significant upside value on extension and purchase
options.
Active fleet
Owned vessels1)
Leased vessels1) 2)
Total active
12
53
65
16
19
35
28
72
100
Current portfolio of leased vessels includes a total of 61,614
extension option days. In addition comes 78 purchase options.
Net asset value of Assets & Logistics1)
For delivery
Owned vessels1)
Leased vessels1) 2)
Total for delivery
-
5
5
2
5
7
2
10
12
Amount in USD million
Dry Cargo
451
Tankers
504
Total
955
Market value of owned vessels
Estimated market value of
T/C & Cover portfolio2)
336
99
435
1,390
243
Total
70
42
112
Total Assets & Logistics portfolio value
Net cash position
787
603
Purchase options
55
23
78
Newbuilding instalments
-71
Extension option
days
Other net assets (book values)
Total business unit NAV
306
44,817
16,797
61,614
1,868
377
1) Incl. sold vessels for future delivery
2) Minimum lease period in excess of 2 years
Business unit NAV per share, DKK
Market value of owned vessels
vs. carrying amounts
127
55
182
1)
2)
including NORDEN’s net cash position
including estimated market value of optionality
Owned vessels in portfolio values and portfolio overview are excl. owned vessels from financial
leasing transactions. NAV per share based on USD/DKK rate and share count as of balance sheet
at end Q2, excluding treasury shares held by NORDEN.
—
—
NORDEN
INTERIM FINANCIAL REPORT SECOND QUARTER AND FIRST HALF-YEAR 2022
6
FREIGHT SERVICES & TRADING
RECORD MARGINS IN STRONG TRADING ENVIRONMENT
Results
Business highlights
Freight Services & Trading key figures
Amount in
USD million
2022
Q2
2021
Q2 Quarters
Last 4
•
•
Profit of USD 153 million in Q2 2022 (USD 30 million).
•
•
Significant shift in exposure from dry cargo to product tankers.
Contribution margin
O/A costs
288.3
-53.7
153.1
75.0
808.8
Result per vessel day at USD 3,560 in Q2, increasing average
margin per vessel day since 2019 to USD 994.
Very strong earnings from utilising high and volatile MR rates:
- Benefitted from increased exposure ahead of exceptionally
strong product tanker rates.
-20.7 -156.7
Profit/loss for period
Vessel days
29.7
406.2
43,008 42,012 166,109
•
Year-on-year activity growth of 2% compared to Q2 2021.
- Utilised regional arbitrage opportunities to capture rate
volatility between Atlantic and Pacific basins.
Result per
vessel day (USD/day) 3,560
707
2,445
- Declared several extension options on vessels added in
2021, ensuring forward capacity at low rates.
Historical performance
•
•
Well positioned to utilise weakening dry cargo market:
- Adjusted short-term exposure to a short position (more
cargoes than tonnage) to benefit from falling freight rates.
- Utilised strong customer relations to enter into forward cargo
contracts for the rest of the year at attractive rates.
Avg. since
FY
2021
2019
Result per vessel day (USD)
Vessel days
994
1,214
152,420 164,189
10.6%* 10%
Annual activity growth
*
Based on 12-month rolling average compared to same
period 2 years prior.
Substantial market value built up, which is expected to
benefit earnings in H2 2022 and 2023.
Average no. of operated vessels
Dry cargo vessels:
Result per vessel day
Activity levels
USD / day
No. of vessel days
180,000
3,000
2,500
2,000
1,500
1,000
164,189
2,733
149,330
2020
136,220
150,000
120,000
90,000
60,000
30,000
0
10.6%
annual
1,214
2021
345
Average
944
growth rate
514
H1 67,597
2019
H1 83,732
2022
500
0
187
Product tanker vessels:
2019
2020
2022
H1
2021
Result per vessel day
Average result per vessel day
Vessel days
127
2022 figures based on year-to-date profit and number of vessel days.
—
—
NORDEN
INTERIM FINANCIAL REPORT SECOND QUARTER AND FIRST HALF-YEAR 2022
7
OUTLOOK FOR 2022
Guidance
Seasonality and uncertainty
Further information
Thomas France
Investor Communications Partner
+45 3315 0451
“NORDEN expects
profit for the year
in the range of USD
560-640 million”
In line with the guidance announcement
in August, NORDEN expects profit for the
year in the range of USD 560-640 million.
This is based on high exposure towards
substantially increased product tanker
market rates, good short-term positioning
towards a weakening dry cargo market,
high long-term dry cargo cover at
profitable rates and active asset trading.
Given the war in Ukraine, sanctions on
Russia, remaining COVID-19 disruption
and macroeconomic uncertainties in
general, the freight market uncertainty
and volatility is expected to remain high.
With an agile business model and strong
operating platform, NORDEN is well-
equipped to manage this uncertainty and
adjust exposure accordingly.
Assets & Logistics
Events after the reporting date
The Assets & Logistics business unit
expects much better earnings in 2022
based on high coverage at attractive rates
on the dry cargo fleet.
No significant events have occurred
between the reporting date and the
publication of this annual report, which
have not already been included and
adequately disclosed in the quarterly
report, and which materially affect the
assessment of the Company’s and Group’s
results of operations or financial position.
In addition, dry cargo vessel sale gains are
expected to contribute positively.
Freight Services & Trading
Forward-looking statements
The Freight Services & Trading business
unit expects a net result significantly
above the combined result for the two
operators in 2021. The expectation is
based on a margin per vessel day above
the record level from 2021 (see table on
page 7). The business unit remains well
positioned to capitalise on a significantly
improved tanker market, while having
ensured downside protection and actively
adjusted exposure to benefit from a
weakening dry cargo market.
This interim report contains certain forward-looking
statements reflecting Management’s present
judgement of future events and financial results.
Statements relating to 2022 and the years ahead
are inherently 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 report include,
but are not limited to: Changes to macroeconomic
and political conditions – particularly in the Group’s
principal markets; changes to NORDEN’s rate
assumptions and budgeted operating expenses;
volatility in freight rates and tonnage prices;
regulatory changes; counterparty risks; any
disruptions to traffic and operations as a result of
external events etc.
—
—
NORDEN
INTERIM FINANCIAL REPORT SECOND QUARTER AND FIRST HALF-YEAR 2022
8
Executive Management
Board of Directors
—
—
NORDEN
INTERIM FINANCIAL REPORT SECOND QUARTER AND FIRST HALF-YEAR 2022
9
CONSOLIDATED
INCOME STATEMENT
CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME
Q2
2022
Q2
2021
H1
2022
H1
2021
FY
2021
Q2
2022
Q2
2021
H1
2022
H1
2021
FY
2021
Amount in USD million
Amount in USD million
Note
2
Note
Profit/loss for the period
Revenue
Other comprehensive income to be
reclassified to the income statement:
Other operating income
Vessel operation costs
Contribution margin
-1,057.4
-727.9
-1,906.4
-1,258.0
-2,908.9
3
Fair value adjustment for the period,
cash flow hedges
7
-131.4
-171.4
-35.3
Other comprehensive income, total
after tax
Overhead and administration costs
-58.2
-23.9
-94.7
-40.9
-117.4
-131.4
-171.3
-35.3
Profit/loss before depreciation,
amortisation and impairment
losses, etc. (EBITDA)
Total comprehensive income for the
period, after tax
-99.6
-99.6
-154.4
-154.4
Profit/loss from sale of vessels etc.
-0.2
-
-9.2
Attributable to:
Depreciation, amortisation and
impairment losses
Shareholders of NORDEN
4
5
-120.0
-65.0
-0.3
-227.8
-122.0
-
-295.5
Share of profit/loss of joint ventures
Profit/loss from operations (EBIT)
Financial income
6
6
-15.6
-8.0
-28.5
-14.9
-35.1
Financial expenses
Profit/loss before tax
Tax
-1.7
-1.9
-3.5
-2.6
-6.2
Profit/loss for the period
Attributable to:
Shareholders of NORDEN
Earnings per share (EPS)
Earnings per share (USD)
Earnings per share, diluted (USD)
—
—
NORDEN
INTERIM FINANCIAL REPORT SECOND QUARTER AND FIRST HALF-YEAR 2022
10
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
30/6
2022
30/6
2021
31/12
2021
30/6
2022
30/6
2021
31/12
2021
Amount in USD million
Note
Amount in USD million
Note
Assets
Equity and liabilities
Share capital
Vessels
8
9
-167.2
-31.2
Right-of-use assets
Property and equipment
Prepayments on vessels and newbuildings
Total Tangible assets
Reserve for hedges
Retained earnings
Total Equity
10
Loans
Investments in joint ventures
Receivables from subleasing
Total Financial assets
-
Lease liabilities
Bonds
9
9
Total Non-current liabilities
Total Non-current assets
Loans
-
-
-
Lease liabilities
Trade payables
Debt to joint ventures
Tax payables
Inventories
Receivables from subleasing
Freight receivables
Receivables from joint ventures
Other receivables
Other payables
Deferred income
934.3
643.3
-
780.1
Prepayments
1,402.0
773.6
963.1
Cash and cash equivalents
Liabilities relating to vessels held for sale
Total Current liabilities
Vessels held for sale
Total Current assets
Total Liabilities
Total Equity and liabilities
Total Assets
—
—
NORDEN
INTERIM FINANCIAL REPORT SECOND QUARTER AND FIRST HALF-YEAR 2022
11
CONSOLIDATED STATEMENT
OF CASH FLOWS
Q2
Q2
H1
H1
FY
Q2
Q2
H1
H1
FY
Amount in USD million
Note
2022
2021
2022
2021
2021
Amount in USD million
Note
2022
2021
2022
2021
2021
Profit/loss for the period
Liquidity at beginning of the period
Exchange rate adjustments
-2.3
-0.4
-2.7
-0.5
-2.4
Reversal of items from the income
statement
-23.8
-96.4
Change in liquidity for the period
Liquidity at end period
Change in working capital
-121.5
-236.4
Instalments on sublease
receivables
Cash and cash equivalents with rate
agreements of more than 3 months, etc.
-0.1
-0.2
-1.3
-0.8
-7.6
Income tax, paid
Cash and cash equivalents at end
period acc. to the statement of financial
position
Cash flows from operating activities
-13.4
-65.1
566.5
297.3
566.5
297.3
410.7
Investments in vessels and vessels
held for sale and other tangible
assets
8
-0.2
-61.0
-1.1
-92.1
30/6
2022
30/6
2021
31/12
2021
Additions in prepayments on
newbuildings
Amount in USD million
Note
10
-9.7
-57.8
-
-104.7
-69.6
-
-155.8
-2.4
Which can be explained as follows
Demand deposits and cash balance
Money market investment
Investment in Joints Ventures
383.7
100.5
82.3
182.5
69.6
200.1
154.1
56.5
Proceeds from sale of vessels and
newbuildings
Change in cash and cash equiva-
lents with rate agreements of more
than 3 months, etc.
Other cash and cash equivalents
45.2
566.5
297.3
410.7
-56.1
-44.7
Cash flows from investing activities
-36.9
-13.6
Dividend paid to shareholders
Acquisition of treasury shares
Proceeds from share options
Proceeds from issue of bonds
Proceeds from loans
-
-17.3
-
-2.9
-96.7
-47.5
-53.0
-11.3
-53.0
-33.1
-
-
-
-
-
-
-25.5
-45.6
-223.2
-
-
Repayment of bonds
-
Repayment of loans
-18.0
-119.3
-212.9
-58.6
-227.8
-107.0
-395.1
-268.4
Instalments on lease liabilities
Interest, received
9
Interest, paid
-13.1
-165.1
-7.9
-24.5
-434.5
-14.8
-35.0
-261.9
Cash flows from financing activities
Cash flow from operating,
investing and financing activities
—
—
NORDEN
INTERIM FINANCIAL REPORT SECOND QUARTER AND FIRST HALF-YEAR 2022
12
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
Shareholders of NORDEN
Share Reserve for
Retained
earnings
Total
equity
Amount in USD million
capital
hedges
Equity at 1 January 2022
-31.2
Total comprehensive income for the period
Capital reduction
-
-
-0.3
-
Acquisition of treasury shares
Exercise of share options
Share-based payment
-
-
-47.5
-47.5
-
-
-
-
Dividends paid
-
-
-
-
-105.4
-105.4
Dividends related to treasury shares
Changes in equity
-0.3
Equity at 30 June 2022
Shareholders of NORDEN
Share Reserve for
Retained
earnings
Total
equity
capital
hedges
Amount in USD million
Equity at 1 January 2021
Total comprehensive income for the period
Capital reduction
-
-171.3
-154.4
-
-0.3
-
Acquisition of treasury shares
Exercise of share options
Share-based payment
-
-
-11.3
-11.3
-
-
-
-
Dividends paid
-
-
-
-
-57.8
-57.8
Dividends related to treasury shares
Changes in equity
-0.3
-171.3
-40.3
-211.9
Equity at 30 June 2021
-167.2
—
—
NORDEN
INTERIM FINANCIAL REPORT SECOND QUARTER AND FIRST HALF-YEAR 2022
13
NOTES TO THE INTERIM CONSOLIDATED
FINANCIAL STATEMENTS
1. Basis of preparation and changes to NORDEN’s accounting policies
1.1 Basis of preparation
Standards not yet in force
The interim consolidated financial statements for the 6 months ended 30 June 2022 have been prepared in
accordance with IAS 34 Interim financial reporting as adopted by the EU and additional Danish disclosure
requirements for the interim financial reporting of listed companies.
The new and amended standards and interpretations that are issued, but not yet effective, up to the date
of issuance of the Group’s consolidated financial statements. The Group intends to adopt these new and
amended standards and interpretations, if applicable, when they become effective.
The interim consolidated financial statements do not include all the information and disclosures required
in the annual financial statements and should be read in conjunction with the Group’s annual consolidated
financial statements for the year ended 31 December 2021.
New and amended financial reporting standards are either irrelevant or insignificant to NORDEN.
Significant accounting estimates and judgements
The accounting estimates and judgements, which Management deems to be significant to the preparation of
the consolidated financial statements, are impairment test and non-lease component for leases under IFRS 16
Leases. Reference is made to note 1.4 “Significant accounting estimates and judgements” on page 79 for a
further description in the consolidated annual report for 2021.
The accounting policies, judgements and estimates are consistent with those applied in the consolidated
annual report for 2021, apart from changes described below.
1.2 Changes in accounting policies and disclosures
The Group has adopted standards and interpretations effective as of 1 January 2022. The Group has not early
adopted any other standard, interpretation or amendments that have been issued but are not yet effective.
Adoption of new or amended IFRSs
NORDEN has implemented amendments and interpretations to existing standards effective as of 1 January
2022. None of these interpretations or amendments have had any significant effect on the accounting policies
applied by NORDEN.
For a complete description of accounting policies, see the notes to the consolidated financial statements for
2021, pages 76-114 in the consolidated annual report for 2021.
—
—
NORDEN
INTERIM FINANCIAL REPORT SECOND QUARTER AND FIRST HALF-YEAR 2022
14
NOTES TO THE INTERIM CONSOLIDATED
FINANCIAL STATEMENTS
2. Segment information
Q2 2022
Q2 2021
Freight
Freight
Assets &
Logistics
Services &
Trading
Assets &
Logistics
Services &
Trading
Amount in USD million
Eliminations
Total
Eliminations
Total
Revenue – services rendered, external
Revenue – services rendered, internal
Revenue – sublease financial income
Voyage costs
60.1
91.5
0.3
1,359.5
-
-
1,419.6
-
14.5
88.8
0.3
839.9
-
-
-88.8
-
854.4
-
-91.5
0.2
-
3.8
-87.7
0.2
87.5
-
0.5
-
0.3
-9.7
-437.8
921.9
9.3
-443.7
976.4
9.4
-4.1
-330.4
509.5
2.8
-3.4
-92.2
-0.6
92.8
-
-337.9
516.8
2.2
T/C equivalent revenue
142.2
-0.1
99.5
0.0
Other operating income
Charter hire and OPEX element
Operating costs owned vessels
Contribution margin
-37.2
-21.1
83.8
-4.5
-642.9
-
-592.6
-21.1
372.1
-58.2
-27.1
-18.1
54.3
-3.2
-437.3
-
-371.6
-18.1
129.3
-23.9
288.3
-53.7
-
75.0
-20.7
-
Overhead and administration costs
-
-
Profit/loss before depreciation, amortisation
and impairment losses, etc. (EBITDA)
79.3
-0.2
-46.9
1.3
234.6
-
-
-
-
-
-
-
-
-
-
-
313.9
-0.2
51.1
-
54.3
-
-
-
-
-
-
-
-
-
-
-
105.4
-
Profit/loss from sale of vessels, etc.
Depreciation, amortisation and impairment losses
Share of profit/loss of joint ventures
Profit/loss from operations (EBIT)
Financial income
-73.1
-
-120.0
1.3
-42.3
-0.3
8.5
0.1
-22.7
-
-65.0
-0.3
40.1
1.6
33.5
0.4
161.5
0.6
195.0
1.0
31.6
1.5
Financial expenses
-8.3
25.6
-
-7.3
154.8
-1.7
153.1
-15.6
180.4
-1.7
-6.3
2.3
-0.2
2.1
-1.7
31.4
-1.7
29.7
-8.0
33.7
-1.9
31.8
Profit/loss before tax
Tax
Profit/loss for the period
25.6
178.7
Adjusted for:
Profit/loss from sale of vessels, etc.
Adjusted Results for the period*
0.2
-
-
0.2
-
-
-
-
25.8
153.1
-
178.9
2.1
29.7
-
31.8
* Adjusted result for the period was computed as “profit/loss for the period” adjusted for “Profit and loss from sale of vessels, etc.” including vessels in joint ventures.
—
—
NORDEN
INTERIM FINANCIAL REPORT SECOND QUARTER AND FIRST HALF-YEAR 2022
15
NOTES TO THE INTERIM CONSOLIDATED
FINANCIAL STATEMENTS
2. Segment information – continued
H1 2022
H1 2021
Freight
Freight
Assets &
Logistics
Services &
Trading
Assets &
Logistics
Services &
Trading
Amount in USD million
Eliminations
Total
Eliminations
Total
Revenue – services rendered, external
Revenue – services rendered, internal
Revenue – sublease financial income
Voyage costs
98.3
183.2
0.6
2,408.8
-
-
2,507.1
-
33.9
167.3
0.6
1,424.1
-
-
1,458.0
-
-183.2
-167.3
0.3
-
0.9
-
-
0.6
-16.7
265.4
-0.1
-788.3
1,620.8
18.3
7.7
-797.3
1,710.7
18.2
-8.1
-572.3
851.8
4.9
-
-580.4
878.2
4.0
T/C equivalent revenue
-175.5
193.7
-0.3
-167.3
Other operating income
-
-0.6
Charter hire and OPEX element
Operating costs owned vessels
Contribution margin
-72.7
-37.5
155.1
-8.7
-1,174.4
-
175.5
-1,071.6
-37.5
619.8
-94.7
-54.4
-35.8
103.2
-5.6
-755.3
-
167.9
-641.8
-35.8
204.6
-40.9
-
-
-
-
-
-
464.7
-86.0
101.4
-35.3
Overhead and administration costs
Profit/loss before depreciation, amortisation
and impairment losses, etc. (EBITDA)
146.4
28.2
-93.2
1.0
378.7
-
-
-
-
-
-
-
-
-
-
-
525.1
28.2
97.6
-9.2
-81.5
-
66.1
-
-
-
-
-
-
-
-
-
-
-
163.7
-9.2
Profit/loss from sale of vessels, etc.
Depreciation, amortisation and impairment losses
Share of profit/loss of joint ventures
Profit/loss from operations (EBIT)
Financial income
-134.6
-
-227.8
1.0
-40.5
-
-122.0
-
82.4
0.5
244.1
0.8
326.5
1.3
6.9
25.6
1.3
32.5
1.9
0.6
Financial expenses
-15.6
67.3
-0.2
-12.9
232.0
-3.3
-28.5
299.3
-3.5
-12.2
-4.7
-0.3
-5.0
-2.7
24.2
-2.3
21.9
-14.9
19.5
-2.6
Profit/loss before tax
Tax
Profit/loss for the period
67.1
228.7
295.8
16.9
Adjusted for:
Profit/loss from sale of vessels, etc.
Adjusted Results for the period*
-28.2
-
-
-28.2
9.2
-
-
9.2
38.9
228.7
-
267.6
4.2
21.9
-
26.1
* Adjusted result for the period was computed as “profit/loss for the period” adjusted for “Profit and loss from sale of vessels, etc.” including vessels in joint ventures.
—
—
NORDEN
INTERIM FINANCIAL REPORT SECOND QUARTER AND FIRST HALF-YEAR 2022
16
NOTES TO THE INTERIM CONSOLIDATED
FINANCIAL STATEMENTS
3. Expenses by nature
6. Financial income and expenses
Q2
Q2
H1
H1
FY
Q2
Q2
H1
H1
FY
Amount in USD million
2022
2021
2022
2021
2021
Amount in USD million
2022
2021
2022
2021
2021
Vessel operating costs
Overhead and administration costs
Total
1,057.4
58.2
727.9
23.9
1,906.4
94.7
1,258.0
40.9
2,908.9
117.4
Interest income
0.8
0.2
0.1
-
1.1
0.2
0.3
-
0.3
-
Fair value adjustment, cross currency swaps
1,115.6
751.8
2,001.1
1,298.9
3,026.3
Exchange rate adjustments
-
1.5
-
1.6
-
Total financial income
1.0
1.6
1.3
1.9
0.3
These costs can be split by nature:
Voyage costs excluding bunker oil
Bunker oil
188.7
255.0
157.0
171.9
358.6
438.7
275.6
295.8
609.6
659.0
Interest costs
4.4
-
2.4
0.1
5.5
-
7.8
-
4.5
0.1
11.1
0.1
Fair value adjustment, cross currency swaps
Interest expense on lease liabilities
Exchange rate adjustments
Total financial expenses
Expenses related to the service component of
right-of-use assets
8.7
2.5
15.6
16.7
4.0
10.3
-
23.9
-
71.1
48.6
137.3
91.6
205.9
Expenses related to short-term leases
Operating costs owned vessels*
Other external costs
Staff costs
521.5
21.3
332.3
12.0
5.5
934.3
37.6
559.2
20.8
1,361.1
73.3
8.0
28.5
14.9
35.1
7.1
12.4
9.3
20.4
7. Fair value adjustment – hedging Instruments
50.9
24.5
751.8
82.2
46.6
97.0
30/6
2022
30/6
2021
31/12
2021
Total
1,115.6
2,001.1
1,298.9
3,026.3
Amount in USD million
* Technical management services (inclusive of cost related to seafarers) is included in operating costs owned
vessels.
Fair value of cash flow hedge
Fair value adjustment at the beginning period
Fair value adjustment for the period, net
End
-31.2
99.0
67.8
4.1
-171.4
-167.3
4.1
-35.3
-31.2
4. Depreciation
Q2
Q2
H1
H1
FY
Amount in USD million
2022
2021
2022
2021
2021
Fair value adjustment for the period, cash flow
hedges can be specified as follows:
Vessels
10.0
109.7
0.3
10.8
53.9
0.3
20.4
206.9
0.5
22.2
99.4
42.6
252.1
0.8
Right-of-use assets
Property and equipment
Total
0.4
Bunker hedging
38.0
22.7
5.5
120.0
65.0
227.8
122.0
295.5
- of which has been transferred to the income statement
due to inefficiency
-
27.5
2.3
-1.8
-187.7
-0.5
1.9
-39.0
0.4
FFA hedging
5. Share of profit/loss of joint ventures
Q2
2022
Q2
2021
H1
2022
H1
2021
FY
2021
Foreign currency risk hedging
Amount in USD million
End
67.8
-167.3
-31.2
Profit/loss from shares in joint ventures
Share of Profit/loss from sale of vessels
Share of impairment of tangible assets
Total
1.3
-
-
-
1.0
-
0.3
2.3
-0.9
-0.3
1.1
The fair value measurement hierarchy of hedging is measured based upon significant observable inputs
(level 2).
-
-0.3
-
-
-0.3
-0.3
-
1.3
1.0
—
—
NORDEN
INTERIM FINANCIAL REPORT SECOND QUARTER AND FIRST HALF-YEAR 2022
17
NOTES TO THE INTERIM CONSOLIDATED
FINANCIAL STATEMENTS
7. Fair value adjustment – hedging Instruments – continued
8. Vessels
30/6
2022
30/6
2021
31/12
2021
30/6
2022
30/6
2021
31/12
2021
Amount in USD million
Amount in USD million
As of 30 June 2022, outstanding hedging contains:
Cost at 1 January
951.3
60.2
-
1,079.7
0.7
1,079.7
104.1
-1.3
Additions
Bunker hedging
Disposals
-1.3
Beginning, 1 January
7.4
53.2
9.2
37.2
21.9
-47.4
20.9
9.2
42.3
29.4
-73.5
7.4
Transferred from prepayments on vessels and newbuildings
Transferred to tangible assets held for sale
Cost
45.9
-168.6
888.8
47.8
76.6
Fair value adjustments
-93.1
1,033.8
-307.8
951.3
Realised contracts, transferred to revenue
Realised contracts, transferred to operating costs
End
85.4
-108.0
38.0
Depreciation at 1 January
Depreciation
-209.8
-20.4
-
-249.8
-22.2
1.3
-249.8
-42.6
1.3
FFA hedging
Depreciations related to derecognised assets
Transferred to tangible assets held for sale
Depreciation
Beginning, 1 January
-39.0
12.4
-5.2
-264.8
176.6
-94.3
-5.2
-288.1
546.5
-292.2
-39.0
45.8
-184.4
30.5
81.3
Fair value adjustments
-240.2
-209.8
Realised contracts, transferred to revenue
Realised contracts, transferred to operating costs
End
134.6
-80.5
27.5
Impairment at 1 January
-38.5
-15.8
22.8
-62.5
-
-62.5
-14.4
38.4
-187.7
Impairment losses for the year
Transferred to tangible assets held for sale
Impairment
2.1
Foreign currency risk hedging
Beginning, 1 January
Fair value adjustments
End
-31.5
-60.4
-38.5
0.4
1.9
2.3
0.1
-0.6
-0.5
0.1
0.3
0.4
Carrying amount
672.9
733.2
703.0
—
—
NORDEN
INTERIM FINANCIAL REPORT SECOND QUARTER AND FIRST HALF-YEAR 2022
18
NOTES TO THE INTERIM CONSOLIDATED
FINANCIAL STATEMENTS
9. Leases – lessee
10. Prepayments on vessels and newbuildings
30/6
2022
30/6
2021
31/12
2021
30/6
2022
30/6
2021
31/12
2021
Amount in USD million
Amount in USD million
Right-of-use assets
Cost at 1 January
Additions
Cost at 1 January
11.3
104.7
-45.9
-44.9
25.2
15.5
69.6
-47.8
-
15.5
155.8
-76.6
-83.4
11.3
958.3
171.4
48.1
527.3
175.1
42.4
527.3
443.1
67.5
Additions
Transferred to vessels
Remeasurements
Disposals related to redelivered vessels
Cost
Transferred to tangible assets held for sale
-44.7
-35.3
709.5
-79.6
958.3
Cost
37.3
1,133.1
Impairment
-
-
-
Depreciation at 1 January
Depreciation
-401.8
-206.9
44.8
-228.6
-99.4
-228.7
-252.1
79.0
Carrying amount
25.2
37.3
11.3
Depreciations related to redelivered vessels
Depreciation
34.5
-563.9
-293.5
-401.8
11. Related party disclosure
No significant changes have occurred to related parties or types and scale of transactions with these parties
other than what is disclosed in the consolidated annual report for 2021.
Carrying amount
569.2
416.0
556.5
Lease Liabilities
Lease liabilities at 1 January
Additions
607.7
191.6
47.9
355.4
175.7
41.1
355.4
454.7
66.9
12. Contingent assets and liabilities
Since the end of 2021, no significant changes have occurred to contigent assets and liabilities other than those
referred to in this interim report.
Remeasurements
Instalments made
-223.2
-
-107.0
-0.8
-268.4
-0.9
Disposals related to cancelled leases
Lease liabilities at end of period
624.0
464.4
607.7
—
—
NORDEN
INTERIM FINANCIAL REPORT SECOND QUARTER AND FIRST HALF-YEAR 2022
19
NOTES TO THE INTERIM CONSOLIDATED
FINANCIAL STATEMENTS
13. Overview of deliveries of owned vessels and CAPEX
Deliveries of owned vessels
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Number of vessels
2022
2022
2023
2023
2023
2023
2024
Total
MR
-
-
2
-
-
-
-
-
-
-
-
-
-
2
1
Logistics assets
1
CAPEX
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Amount in USD million
2022
2022
2023
2023
2023
2023
2024
Total
Newbuilding payments
and secondhand purchases
18
1
47
-
4
-
-
3
-
-
-
72
16
Other CAPEX*
5
5
5
Future payments to NORDEN from sold vessels: USD 145.2 million.
* Capex includes ordinary dockings, acquisition and installation of scrubbers and ballast water treatment systems.
14. Events after the reporting date
See page 8 in the Management Review.
—
—
NORDEN
INTERIM FINANCIAL REPORT SECOND QUARTER AND FIRST HALF-YEAR 2022
20