MEXICO: The positive momentum for Nordic Shipholding continued into the third quarter. A strong market, lower operating cost and an impairment reversal led to a profit of USD 12.2 million for the first nine months, compared to a loss of USD 4.6 million for the same period in 2014.
This has enabled substantial repayments on the loan facilities, resulting in an improved equity ratio. The improved performance has led to an upward revision in the forecast for the full year.”
The comparison figures for period ended 30 September 2014 are stated in parenthesis.
This Q3 report covers the period 1 January 2015 to 30 September 2015.
For the 9 months ended 30 September 2015 (‘9M 2015’), the Group generated a profit after tax of USD 12.2 million, which includes a one-off gain of USD 5.8 million from the reversal of impairment loss on the vessels deployed in the Handytankers Pool. Excluding the reversal of prior years’ impairment, the Group generated a profit after tax of USD 6.4 million compared to a loss after tax of USD 4.6 million in the same period last year (‘9M 2014’). The higher average TCE rates from the vessels deployed in Handytankers Pool, higher TCE income earned by the LR1 vessel (Nordic Anne) as well as lower vessel operating expenses contributed to the better performance in the first 3 quarters of 2015.
Despite the higher gross freight revenue generated by the vessels in the Handytankers Pool, the total gross revenue earned in 9M 2015 was marginally lower by 2.5% as the 9M 2015 revenue comprised time-charter income (i.e. net of voyage expenses) from the LR1 vessel (Nordic Anne) whilst the 9M 2014 gross revenue represented freight income from the LR1 vessel.
TCE earnings rose 41.3% to USD 26.6 million (USD 18.9 million) in 9M 2015 due to higher TCE earnings for the vessels in the Handytankers Pool arising primarily from higher gross freight rates and reduced bunker expenses. The TCE income in 9M 2015 from the 3-year time-charter locked in for Nordic Anne was also higher than the LR1 pool earnings in 9M 2014.
