Scrubber installations onboard Norden's tankers have impacted the Danish operator's third-quarter results, although it was a different story for its dry segments.
Meanwhile, Norden said its board has decided to initiate a share buy-back programme of up to $10m in total.
Norden recorded an adjusted net loss of $4.0m for the three-month period, which is an improvement on the $12m loss seen last year.
The tanker segment made an $8m loss, which was better than the $18m loss seen in the same period in 2018.
Jan Rindbo, Norden's chief executive, said the tanker division's loss was due to seasonally weak spot rates and vessels taken out of service for scheduled scrubber installations.
"However, with all but one scrubber installations completed on owned MR [medium-range] tankers and a much-improved tanker market sentiment for the fourth quarter of 2019, Norden is well positioned to capture the expected benefit," he said in the company's earnings report.
Norden's loss was offset slightly by a $4m gain made on the sale of two MR tankers during the quarter.
The 39,800-dwt Nord Geranium (built 2014) was sold for $25m to Vepamil of Ecuador and the 38,300-dwt Nord Snow Queen (built 2008) went to MSEA Tankers for $13m, including its charter, according to brokers.
Buyback plans
Norden today said it would spend up to $10m in buying back its treasury shares.
The securities will be acquired at a nominal value of up to 10% of the share capital at the market price applicable at the time of acquisition, with a deviation of up to 10%.
Norden said the board's authorisation for the buyback programme was renewed at the firm’s general meeting on 11 April.
Dry performance
As Norden predicted in late October, both its owned and operated bulker fleets turned a profit during the third quarter.
The operated fleet fared slightly better, posting $3m in for the quarter, a 50% increase on the level recorded this time last year, which Norden said was due to "trading opportunities".
"While the first half-year was challenging offering few trading opportunities, the second half-year has so far provided more opportunities for Dry Operator," Norden said in its report.
Profits halved year-on-year for Norden's owned bulkers, finishing at $2m for the period.
Full-year expectations
In late October, Norden lowered its profit expectations for 2019 after discovering a mistake in its bookkeeping.
The firm revised its forecast to between $10m and $45m, down from $25m and $60m, upon seeing the calculation error while updating estimates for its upcoming third-quarter earnings report.
Today, Norden reiterated this guidance and added that it expects a strong fourth quarter for its Dry Operator segment.
It expects the division to post a "positive" full-year result of between $5m and $20m.
