Citing a weak dry cargo market and a disappointing tanker market, the company revised down its EBITDA forecast for 2014 from between breakeven and negative $60m to between -$40m and -$60m.
Revenues in the quarter rose by 4% to $1.06bn, but were more than matched by a 7% increase in costs to $1.07bn.
The group's dry cargo segment lost $53m in the first six months of the year, with tankers losing $2.9m and reporting a EBITDA of $-6m. Average time charter equivalent earnings in the dry bulk sector were $12,252 per day, compared to $11,236 per day in the same period 2013. For tankers, the H1 $14,048 per day average in 2013 fell to $12,811 per day this year.
For dry bulk the company cited downward pressure from the continued absence of bauxite and nickel ores, a reduction in Chinese coal imports and a lacklustre South American grain season. While the market is expected to improve in the second half of the year, it is not expected to reach the rates of the last six months of 2013.
Negative impacts were felt in the tanker segment due to a contraction of the vegetable oil market, vessels shifting into Norden's clean product territory from the dirty product trades and refinery maintenance closures in the US.
Interim CEO Klaus Nyborg, who took over in the wake of Carsten Mortensen's departure for BW Group, commented: "The second quarter was more challenging than expected at the beginning of the year, and the 2014 markets have not yet met the expectations of a gradual improvement – neither within dry cargo nor tankers.
"The market rates are still expected to improve towards the end of the year but not to such an extent that we can maintain our previous expectations for the results for the year."
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