Analyst Bjorn Kristian Roed dropped his rating on the
Oslo-listed firm from buy to hold suggesting its 2012 heroics would not spill
over into this year.
“We estimate negative earnings growth in 2013 for the
company on the back of reduced demand for mining equipment,” he said.
With this in mind the company will struggle to measure up
to market earnings expectations, he adds.
Roed notes WW ASA has no newbuildings on order so will
have to charter additional tonnage at higher rates to meet volumes commitment.
“This makes us see limited earnings momentum to lift the
shares going forward, and we find it fairly priced at current levels,” he said.
Roed predicts the owner will see operating profit dip
from an exceptional $442m in 2012 to $428m in 2013. This leaves Danske 4% below
consensus.
“The company has finished its capex programme and is in
the process of placing new orders in the near term,” he added.
“By ordering a newbuilding today, the vessel will not be
delivered until Q4 14 at the earliest, which makes earnings growth from new
tonnage limited in 2014 and 2015.
“We have seen a strong growth in the company’s charter in
costs in 2012, which indicates that its current fleet is close to fully
utilised.
“This would make the company in need to charter in
tonnage at higher rates to absorb volumes, which would put pressure on the
company’s margins going forward, we believe.”
