Dampskibsselskabet Norden (DNORD) Q3 2024 earnings summary

Executive summary

• Q3 2024 net profit was USD 25 million, with year-to-date profit at USD 133 million and ROIC of 15% for the last twelve months.

• Market conditions were weaker than expected in both dry cargo and tankers, with dry cargo margins improving but offset by a significant decline in tanker spot rates.

• Five vessels were sold during the quarter, expected to generate future gains of USD 25 million, with two sales from declared purchase options.

• Interim payout of USD 21 million via dividend and a new USD 12 million share buy-back program were announced.

• The business remains well-positioned for a positive asset market due to low order books, limited yard capacity, and a large portfolio of purchase options.

Financial highlights

• Q3 2024 EBIT was USD 32 million, EBITDA reached USD 115 million, and contribution margin was USD 131 million.

• Net profit for the quarter was USD 25 million, with a 12-month ROIC of 15%.

• Net interest-bearing debt at end Q3 2024 was USD 464 million, up from USD 34 million a year earlier.

• Net asset value at end-September was DKK 433 per share.

• Revenue for Q3 2024 was USD 1,064 million, up from USD 899 million year-over-year.

Outlook and guidance

• Full-year 2024 net profit guidance narrowed to USD 160-210 million, including USD 83 million gains from vessel sales, mainly due to weaker tanker markets.

• Margins in dry cargo are expected to improve, while tanker margins are likely to decline further in Q4 due to lagging effects of weak spot rates.

• Assets & Logistics earnings expected to remain stable for the rest of the year.

• By end October, 1,800 open tanker vessel days and about 240 open dry cargo vessel days remain for 2024.

• High market uncertainty expected to persist due to geopolitical and macroeconomic factors.