EMEA News
Norden Looks to Slash $5.5 Million From its Bunker Bill "for the Benefit of the Environment and the Bottom Line"
Dampskibsselskabet Norden A/S (Norden) last week said it is planning to slash $5.5 million off its bunker bill through fuel efficiency gains.
In comments made following the company's annual general meeting on April 23, chairman Mogens Hugo said that in light of its $416 million loss for 2014 that not even a strong tanker market could offset, Norden is preparing for "a continuously strong headwind" by introducing a number of initiatives.
They include making the company's vessels "go further to the litre for the benefit of the environment and the bottom line," Hugo stated.
The chairman went on to say that "We have also set a target for our saving. In 2015, we aim to improve the fuel efficiency of the core fleet by 3 percent. If we see the same activity as in 2014, this will equal a reduction of 17,000 tonnes of fuel – or, measured by the going rate for bunkers, $5.5 million."
The other initiatives include reducing the dry cargo fleet, securing new credit facilities, and launching a cost saving programme.
Hugo also discussed the drop in oil prices and pointed out that because Norden doesn't perform price speculations the company took an unrealized loss on hedging instruments of close to $62 million in 2014.
However, he added that the decline in prices led to increased trading, which in turn allowed Norden's tanker department to generate its best results since 2008.
"Tanker EBITDA amounted to a total of $44 million – which is 13 percent above last year's result," he said.
"It is now up to someone else to run NORDEN," Hugo concluded.
"I can calmly step aside and leave the helm to Klaus Nyborg, who has been marked out to be the chairman of this proud company and its 144 years of history."
In March Norden first revealed its $416 million 2014 loss, despite savings of $90 million in bunker costs.
