Norden flies to Copenhagen, raises guidance 2026 thanks to increase in crude oil transport tariffs

(Il Sole 24 Ore Radiocor) - Norden surged on the Copenhagen Stock Exchange after raising its guidance for 2026, reflecting the increase in oil transportation tariffs as a result of the war that led to the blockade of the Strait of Hormuz. The exercise will also benefit from increased revenue from ship sales. The Danish shipping company's share price around mid-morning (on Tuesday 27 April) was up 8% at 309.10 kroner. "Thanks to ship sales and a stronger tanker market, Norden revises upwards its net profit forecast for the full year 2026, bringing it to $70-140 million from the previously indicated $30-100 million," a statement read. In the first quarter of 2026, the group's net profit stood at $11m (DKK 72m), 'driven by the excellent performance of the tanker business' (the oil tankers), but 'partially offset by disappointing results in the dry cargo business'. Excluding the impact of leasing contracts, the oil sector's Ebit amounted to USD 47.3 million, while the 'dry cargo' Ebit recorded a loss of USD 45 million.

 "The oil sector's performance has been driven by a surge in spot rates, fuelled by disruptions in global oil flows following the conflict in Iran and the subsequent rebalancing of trade to meet regional demand. Although the outlook for the oil sector remains uncertain and dependent on the resumption of flows through the Strait of Hormuz, we anticipate a significant increase in spot earnings for the full year 2026,' Norden explains. At the same time, the first quarter was difficult for the Dry Cargo division, with losses due to charter charges to cover cargo commitments and additional operational and insurance costs related to the conflict in Iran. "Repositioning costs for part of the fleet were also incurred in the first quarter, which are expected to generate value in the second quarter. As a result, we expect a gradual quarterly improvement in the Dry Cargo business unit,' Norden points out. The group also continued 'its asset enhancement strategy' and has sold seven vessels since the beginning of the year, three from the owned fleet and four under purchase options. For the full year 2026, Norden now expects revenue from completed transactions to be USD 64 million from the originally projected USD 20 million. Founded in 1871, Norden is one of Denmark's oldest internationally operating shipping companies, with offices on six continents.