Norden Sells Last Capesize

Norden Danish shipping company Norden has entered two separate deals, one to sell the Capesize vessel Nord-Energy and the other to buy a Supramax vessel. Both deliveries will take place in the course of the first quarter of 2016. The move comes within the companys recently introduced Focus & Simplicity strategy, under which Norden is focusing on Panamax and Supramax vessels within its dry cargo ownership sector. Following the sale, Norden does no longer own Capesize vessels and currently only operates one chartered vessel of this type. Norden said that the sale of the 180,310 dwt, 2004-built Nord Energy will be at an accounting loss of USD 14.8 million, which will be included in the annual results for 2015. The loss is especially driven by the development in fleet values seen in the fourth quarter of 2015. The market values of vessels dropped significantly during the quarter, and the company has consequently started on a routine impairment test for the purpose of assessing the need for a write-down of the carrying amount of the fleet, Norden explains. As a result of the sale of Nord Energy, expectations to the 2015 EBIT results including profits from vessel sales are adjusted to USD 43-63 million compared to the previous USD 58-78 million, the company said.