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Norden raises profit forecast well into the black

Norden raises profit forecast well into the black
Norden has raised its EBIT forecast for 2015 to $50m-$90m as its tanker and dry bulk fleets perform better than expected.

Previous expectations of an EBIT between negative $40m and positive $40m have been revised up as the tanker segment's income remains high, and dry bulk losses are lower than predicted, despite an appalling dry bulk freight market.

The tanker business unit is now expected to report an EBIT of $75m-$100m, up from the previous forecast of $35-$65m.

Even though dry bulk market has hit historic lows this year, the dry cargo department's previous forecast of between breakeven and a $60m loss has been narrowed to between breakeven and a $25m loss.

"Fleet values in dry cargo continue to be under pressure as a result of the challenging markets, and the company will perform a routine impairment test in connection with the publication of the interim report for the first half-year," the company warned.

The latest forecast for the dry bulk segment is still below that made at the start of the year, and above that made at the end of Q1, giving some insight into the volatility of the low dry bulk market.