Company Announcement 07/2020

Nachrichtenquelle: globenewswire
26.08.2020, 07:17  |  110   |   |   

August 26, 2020

Company Announcement: 07/2020

Published via NASDAQ OMX on August 26, 2020

Business Updates and Outlook for 2020

Business Updates
As stated in Note 0 in the Interim Report Q1 2020, the management together with the majority shareholder of the Company had commenced merger discussions with a potential entity since late 2019.  However, these merger discussions have stalled due to the diminished financial and economic visibility that have evolved and is still evolving from the COVID-19 pandemic. 

In the meantime, the Group has offered one of its vessels, Nordic Hanne, to the market for sale.  This is in line with management’s strategy to secure longer term financing in the renegotiation of the Group’s loan facilities.  As of the date of this announcement, no potential buyer has been identified.

The Group so far has not provided any outlook for 2020 due to uncertainties arising from the COVID-19 pandemic.  The Group is now reinstating the guidance for 2020.

2020 started strongly with the vessels grossing very high TCE rates for several months.  However, TCE rates abated as the Group entered H2 2020.  Historically, Q3 is the weakest quarter and expectation is that the market will improve slowly over the winter period.  Barring unforeseen circumstances and no vessel sales, the Group is forecasted to incur a small loss or breakeven in H2 2020.

For the rest of 2020, the five vessels will continue to be commercially deployed on a pool basis (including the vessel currently earmarked for sale). 

Assuming all five vessels remain in the Handy and LR pools respectively, the TCE revenue for 2020 is forecasted to be in the region of USD 28.0 million – USD 31.0 million.

After accounting for operating expenditure budgeted by the respective technical managers, the Group’s expected EBITDA (earnings before interest, tax, depreciation and amortisation) for 2020 is in the range of USD 14.0 million – USD 17.0 million.  The result before tax is between USD 2.5 million – USD 5.5 million.  The outlook for 2020 does not take into account any impairment or write-back of impairment of vessels’ carrying values, except for the vessel currently earmarked for sale.

The Company continues to pursue growth and potential consolidation opportunities that are accretive to the Company.

For further information please contact:
Knud Pontoppidan, Chairman of the board, Nordic Shipholding A/S: +45 39 29 10 00

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