Dampskibsselskabet Norden A/S (DPBSF) Q3 2024 Earnings Call Transcript

Dampskibsselskabet Norden A/S (DPBSF Q3 2024 Earnings Call October 31, 2024 10:30 AM ET

Company Participants

Jan Rindbo – Chief Executive Officer
Martin Badsted – Chief Financial Officer

Conference Call Participants

Ulrik Bak – SEB

Operator

Hello and welcome to the Norden Q3 Analyst and Investor Conference Call. My name is Elliot, and I’ll be coordinating your call today. [Operator Instructions] I would now like to hand over to Jan Rindbo, Chief Executive Officer. Please go ahead.

Jan Rindbo

Thank you very much and also a warm welcome to this conference call from my side. Let me start by sharing the business highlights here for the third quarter of 2024. So during the quarter, we were operating in market conditions that were weaker than expected for both dry cargo and tankers. However, in the Freight Services & Trading unit, we did see improving margins in the dry cargo activities, but that improvement was offset by weaker tanker spot rates. We continued to trade our assets actively, and during the quarter, Norden entered into agreements to sell 5 vessels at an – expected future gains of $25 million. 2 of the vessels sold were from declared purchase options that were in line with the NAV.

Despite this recent spot market weakness in our markets, we continue to see good market fundamentals. And we also expect asset prices to continue to remain well supported by the low order books and limited yard capacity. And we are well positioned towards a structurally positive asset market through the extensive portfolio of purchase options that has significant value upside.

I will now hand you over to Martin Badsted to go through the financial highlights.

Martin Badsted

Thank you, Jan. Net profit in the quarter was $25 million, which corresponds to a return on invested capital over the last 12