Norden books massive 2015 deficit after new impairment and loss

China's economy has made the price of dry bulk vessels slide big-time. As such, Norden impairs its fleet, makes provisions for USD 340 million and reduced its full-year 2015 operating profit guidance by close to USD 290 million.

Photo: Norden

The crisis in dry bulk has in no way bypassed Danish carrier Norden. This was made abundantly clear when the company late on Wednesday in a corporate statement reduced its operating profit guidance for 2015 from a projected profit of USD 43-63 million to instead a deficit of USD 277-297 million.

The downgraded guidance goes hand in hand with new provisions totaling USD 340 million, with no cash flow effect, that Norden will include in its 2015 annual report. The provisions will cover the fact that the book value of Norden's dry bulk vessels is impaired by USD 180 million, and the company also makes provisions for additional USD 160 million to cover losses from dry bulk vessels on long-term charter, informs the carrier.

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