Norden joins Maersk in downgrading full year forecast

Norden joins Maersk in downgrading full year forecast

Citing the “very weak” tanker spot market, Norden has become the second Danish owner in consecutive days to lower its full year financial forecast.

Norden warned yesterday it might not even make a profit, lowering its full year forecast to anywhere from $0 to $30m, down from an earlier prediction of $10m to $50m.

The downgrade comes despite Norden upping its estimate for how it will perform on the dry operating side.

“The Tanker market has worsened throughout 2018 and is currently at unexpectedly low levels,” Norden stated, warning the division could lose as much as $35m this year.

The new estimate is based on a continued very poor market in the third quarter followed by moderate seasonal improvements in the fourth quarter.

Norden publishes its interim report next Wednesday.

Yesterday, Splash reported that Maersk had also been forced to lower its full year forecasts too, citing weak container freight rates and high bunker bills.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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