Norden announced a $205m profit for 2021, up from $86m in 2020; adjusted for profits from vessel sales, its results were $198m for 2021 and $106m for 2020. Fourth quarter profit in 2021 alone was $123m, compared to $3m in the same quarter of 2020.
The company forecast a $210-280m profit in 2022, including $37m in known gains from vessel sales.
For 2021, the group’s dry bulk segment profits comfortably covered losses in the tanker segment, topped up by a small profit in asset management. From a $59m profit in 2020, the dry bulk operation made a $230m profit in 2021.
Dry bulk managed to expand its average fleet size by 14% on-year at a time of soaring rates; the average result per vessel day jumped 345% from $559 in 2020 to $1,931 in 2021. Norden said that dry bulk vessel supply was effectively restricted by port congestion related to COVID-19. A similar situation in the container trades was so severe that the dry bulk market benefited from carrying cargoes that would in normal times have been shipped in containers, said Norden.
In its market outlook for dry bulk in 2021, Norden expects continued strength. “Globally, port congestion is not expected to evaporate in the short-term, as COVID-19 variations continue to pose a threat to supply chains. China is expected to have subdued activity in the first half of 2022. We expect the Chinese economy to be fiscally stimulated and demand for dry cargo to increase from March onwards,” it said.
Norden’s tanker segment recorded a $30m loss for 2021, down from a $18m profit in 2020. COVID-19’s impact on fuel demand and oil production was blamed for a 65% drop in average MR Atlantic spot rates $6,800 per day and a 51% drop in average MR Pacific spot rates $7,800 per day.
The company said it believes the market bottomed out in 2021, and so has positioned for a rebound in the second half of 2022 after a challenging start to the year.
“Demand for tanker transport is expected to increase with more tonne-miles related to ongoing market disruptions in line with the need for restocking oil inventories combined with a gradual recovery of oil demand,” said Norden. The pace of recovery will depend on OPEC+ countries’ capacity and ability to hike production, however.
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