NORDIC SHIPHOLDING
Company Announcement: 09/2020
Published via NASDAQ OMX on
Write down and revised Outlook for 2020
Business Updates
As mentioned in Company Announcement 7/2020 following a strong product tanker market in 1H 2020, the market softened significantly going into 2H 2020. This impacted earnings but even more so, the build-up of products in storage, the declining demand and the continued uncertainty in relation to the COVID-19 pandemic, resulted in a very soft second-hand market with declining values for all tanker segments including product tankers.
As announced in Company Announcement 8/2020 the Nordic Hanne was re-classified as an asset held for sale and in this connection an impairment loss of
Consequently, the net carrying value of the remaining fleet has been reassessed and an additional impairment loss of
Outlook
The above additional impairment losses totalling
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). Barring unforeseen circumstances, the TCE revenue for 2020 is marginally adjusted and now forecasted to be in the region of
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
The Q3 2020 announcement will be released on
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