Dampskibsselskabet Ord

no one that was published this morning. In the first part of the presentation, you'll be in a listen-only mode, which will be followed by a Q&A session. During the Q&A session, if you dial in by phone, you'll be able to ask questions verbally by pressing pound or hashtag followed by five on your phone's keypad. If you're watching this webcast online through a browser, you can ask your written questions in the chat below. Those questions will not be published, but the operator will read them aloud. With that, I'll hand it over to CEO Jan Rindbo and CFO Martin Balstedt from Noon. Please go ahead.

Thank you very much and hello to everyone. Thank you for joining. Let me start by just giving you a just a brief introduction to Norden. We are a leading global operator transporting the essential commodities for industrial customers worldwide. We have a capital efficient fleet strategy combining owned and chartered vessels, which enable us to navigate market cycles and deliver competitive returns. So today we will take you through our performance and the strategic positioning of the company. So let's dive straight into it. And let's do that with probably one of the most discussed topics at the moment, the conflict in the Middle East. which obviously are having big impact on both the markets and operations. So we see obviously on the tanker side strong support on the tanker rate. We've seen surging spot rates where tankers are in high demand to help rebalancing oil markets in view of the lack of the oil supply that's coming out of the Middle East. The dry cargo market reaction has been more muted and here it's probably more the additional operational impacts and costs that affects the business. We've seen obviously with higher oil prices a significant increase in the bunker costs. So they're up roughly around 50% since the start of the conflict. That does not directly impact Norden because we hedged the directional risk of the oil price, but we are seeing physical delivery premiums have spiked that cannot be hedged. Norden has, as you can see here on the map, we have seven vessels trapped inside the Persian Gulf, six dry cargo vessels and one tanker. And we have obviously suspended all new business coming into the region. But we'll obviously touch much more on the situation in the Middle East later in the presentation. If we look at the highlights, the financial highlights of the quarter, we've made $11 million net profit in the quarter, which is giving us a return of just under 8% on the return on invested capital. We have a very strong operational cash flow of $172 million in the quarter. And what is probably the most significant development overall in the quarter has been this increase in the net asset value of our business and our fleet of 11% since the end of the year. So in just one quarter, the net asset value of the company has actually gone up by 11% to now stand at 422 Danish kroner per share. and we continue to return cash to investors in this quarter we are continuing with a quarterly dividend of two Danish kroner per share and on top of that we have a share buyback program of 25 million dollars and that brings a total payout to 35 million dollars for for this quarter When we look at the group fleet overview, we continue to be very active in optimizing the fleet. We have in this quarter sold seven vessels. Four of those are from declared purchase options. We also continue to log in longer term earnings through time charter out. So we've done eight long term deals on time charter to secure forward earnings. We also continue to add ships. So we've actually added more ships than we have sold. We've added 11 vessels in the quarter, eight leases with purchase options, and then we have purchased three vessels. And we continue to sit on this big portfolio of purchase options. We have 91 in the portfolio, of which 33 can be declared over the next two years at prices that are currently 22% below current market prices. And if we dive a little bit more into the fleet and look at the fleet composition, you will notice here that we are reducing exposure mainly on the ships that are exposed to what we call the positioning margin. So that's more the ships that are dependent on directional market calls. So typically the larger dry bulk vessels, but also the MR ships. So here we have specifically sold one cape and chartered out three. We've sold two Panamaxes. On MRs, we have sold two ships and time chartered out five ships. So quite a lot of activity on these large and medium ships, but predominantly reducing exposure in those segments. And then the ships that we are adding to the fleet have all been in what we call the smaller vessel sizes. They are more exposed to the base margin part of the business. This is the core operating margin that is not dependent on the market direction. But this is where a combination of cargoes, reducing ballast time, loading more niche type cargoes at additional margin. And here we have added two handy-sized ships to the core fleet, and then nine multi-purpose ships. So we now have built a core fleet of multi-purpose ships of 22 vessels, and strategically this is one of the areas that we're focused on building. Most of these ships are new buildings. The first one will deliver later this year, and then this fleet will deliver in the coming years. One deal stands out in the quarter, and that is that we have signed a new billing contract for two ice-classed multipurpose vessels. Those ships are ordered against a long-term contract that we have signed with a Swedish mining company, and the ships will be used partly to perform that contract when they deliver in 2028. with that i will hand you over to martin who will talk a little bit more about our nav

Thank you very much. Yes, as Jan already alluded to at the highlights page, the NAV developed quite positively during the quarter, up 11% to 422 kroners per share. And it was actually a broad-based increase in the value of assets, both in dry and in tankers. You'll see from the table here that currently actually, in terms of our own fleet, the majority of the value, 800 million, lies within dry, whereas 200 million are in tankers. But when you look at the value of the TC portfolio, including purchase options, it's actually a little bit overweight tankers with 263 million dollars. On the right hand side, you will see sensitivity analysis of what happens to the 422 per share if we change both the forward curve and the asset values by 10 or 20 percent. And you will see the outcome ranging from 308 to 559 kroners per share, all actually either in line or above the current share price. Sorry for that, it's a little bit slow. So looking at the market development in dry, it was actually a fairly strong quarter. When you look at the turquoise line in the middle of the graph, you will see that the spot rates for supers, as an example, were far higher than 2025. Actually, they were up 41% over the quarter. And that was mainly driven by the standard commodities, iron ore, bauxite, grains, whereas coal was actually quite weak, although we are seeing that changing currently. We do have a firm view on the long-term outlook for dry cargo. not least based on a favorable supply side, where you'll see on the right-hand side that the order book is actually matched more or less by the share of the fleet, which is over 20 years. So there's good reason to believe that you can actually still have favorable fundamentals in the dry cargo market going forward. Looking at our earnings in dry cargo, you will see that we made on EBIT level a loss of $45 million, which is, of course, unsatisfactory. It was mainly driven by dry operator large and small, which both made a loss in the quarter. Of course, some of this was related to cost as a result of the Persian Gulf conflict, where we both have vessels stuck within the Persian Gulf, but certainly also the regional bunker premium that Jan talked about in the beginning, which are hedged to the extent possible, but there are still some non-hedgable items of the bunker exposure we have that has cost us quite dearly during the quarter. Of course, it's not all the Persian Gulf. It's also what we call regional positioning, which really means that we have decided to reposition some of our vessels from the Pacific into the Atlantic in expectations of higher Atlantic rates. The benefits from this has yet to materialize, but we still expect some of that to show up in the Q2 earnings. And we do see gradual improvement in earnings in dry operator going forward. In tankers, it was a super strong spot market during the quarter, of course, driven by the dislocation of trade flows following the closure of the Strait of Hormuz. You see the graph here actually coming up to close to $70,000 a day. That was actually an average of very large regional discrepancies, where the US Gulf ramped up exports quite aggressively and paying rates close to $100,000 a day, whereas it was a little bit more muted, but still good rates of call it $30,000 a day in the East. The development in rates has turned around in recent days. And of course, the underlying problem here is that with the closure of the Strait of Hormuz, we are lacking 15 to 20% of volumes that will normally have occupied a lot of seaborne capacity. But also here, actually, fundamentally, we are not so worried about the supply side, as you will see on the right-hand side also here. The order book is matched more or less with the share of the fleet being more than 20 years old. But we do think some of this order book is starting to accelerate deliveries during the second half. That should put some pressure on rates going forward. In tankers, we made a total EBIT of $47 million, and it was actually mainly in the dry owner, which has some spot exposure through our Norian product pool. The tanker owner made $37 million and the tanker operator just over $10 million in the quarter. That brings me to the full year guidance, which, as you know, we upgraded end of April and we raised it by 40 million dollars to a new guidance of 70 to 140 million dollars. And that includes a reservation of 30 million dollars to cover possible costs for the six TC vessels that we have stocked within the Persian Gulf. which is really based on an assumption that those vessels may stay there actually until the end of the year before they can get out. The earnings that we expect for 2026 are quite front-end loaded, meaning that much of it should come in Q2 and then taper off within the second half of the year. And in terms of risk exposure, we have about 2,300 open tanker days and close to 7,000 open dry cargo days, all being long against the market. That concludes my part of the slides, and I'll hand you back to Jan.