Dampskibsselskabet Ord

Good morning and welcome everyone to this webcast with a presentation of the Q2 2026 report from NOAN 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 have dialed in by phone, you'll be able to ask questions verbally by pressing pound or hashtag followed by five on your phone's keypad. And 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 Those questions will not be published, but the operator will read them aloud.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 over to CEO Jan Rindbo and CFO Martin Badsted from NOAN. Please go ahead.

Thank you very much and from my side also welcome to our Q2 presentation. I think this quarter is probably one of the most sort of complicated in terms of operations, but it's also one of our better quarters in terms of the financial performance. So we'll dive obviously into that a little bit later. I'd like to just start by setting the scene, just giving you a short introduction to Norden. As you know, our purpose is to enable smarter global trade. We transport All the essential raw materials that you use in energy, construction, manufacturing and all these commodities underpin the modern living that we all know. Norden is one of the world's largest carriers. We operate a fleet now just under actually 500 vessels and we transport around 130 million tons of these essential raw materials on an annual basis. This scale gives us extensive market insight, gives us strong access to our customers and it gives us the flexibility to optimize our fleet across all these various vessel segments that Norden are in and across all the regions that we operate in. So our model combines on one hand customer solutions with very disciplined exposure management and flexible capital deployment. And that enables us to manage the shipping cycles, but also retaining strong cyclical upside. And when you look at that approach, that has generated over the last five years a return on invested capital of 25%. And that demonstrates our ability to create attractive returns through these changing markets. So as we now move on with the slides, let me explain the business model behind our results, how that actually works. So Norden is more than just an owner of vessels. We combine three closely connected capabilities, commercial operations, exposure management, and asset allocation. This commercial platform connects all the essential cargo that we carry with the right vessel capacity and enables us to optimize voyages, trading patterns, and the fleet utilization. and we manage this exposure through a combination of owned, leased and short-term chartered capacity and it allows us to adjust our fleet to markets and also to customer requirements as they change. So we allocate our capital across segments, vessels, owned, leased, short-term charters, purchase options in order to seek attractive risk-adjusted returns while we have the flexibility to recycle capital back into the business. And together, when you combine all this, these capabilities create an integrated and capital efficient model that is built around the customer solutions that we deliver, the market insight that we have, and then this disciplined execution. And this model becomes particularly valuable when trade flows are complex and customers place a premium on reliability. And that's the kind of market backdrop we are in today. So I'd like just on this slide to just highlight the market fundamentals that we see increasingly favoring this Norden model. So the supply side outlook is positive. We are seeing that particularly in dry cargo where we have an aging global fleet and where the order book actually still remains modest. And at the same time, we see the geopolitical disruptions and strained supply chains are making trade routes longer, less predictable, and operations are becoming even more complex. And these conditions, they support vessel demand, but they also increase the importance on flexibility, scale, and execution capabilities. And here we see that customers increasingly are preferring large professional and reliable operators that can secure capacity and manage their complex logistics across multiple regions. And this is sort of where Norden stands out with our fleet of just under 500 vessels, global commercial network and this customer centric approach that we have. And therefore we are actually really well positioned to benefit from these Structural Trends, not just through our freight market exposure, but also by helping our customers managing these complex supply chains. So with that introduction, I'd like to hand you over to Martin to translate this into financial numbers here in the second quarter. So Martin.

Thank you very much. So, Norden had a good quarter in Q2. As you can see from the graph on the left-hand side here in the dark blue bar, we made a net profit of 101 million dollars in the second quarter. That means that our return on invested capital grew to 11% when measured over a 12-month basis. Asset values actually continued to increase, leaving our NAV at the end of the quarter at 466 kroners per share, which implies an increase of 23% since the beginning of the year. And finally, we continue to distribute cash to our shareholders, now distributing 34 million dollars in line with what we also did after Q1. And those 34 million dollars are composed of a dividend of 2 kroners per share and a share buyback of 25 million dollars. Looking at the development in the two segments, there were improvements in both of them. As you see from the graph here, the tanker division made 81 million dollars in the second quarter, which was up some 30 million dollars compared to the year before. That was based on a very strong spot market, driven of course by geopolitical disruptions and uncertainty, and not least good performance in the chartering teams. TriCargo delivered an EBIT of $8 million, which of course is not enough, but it was a huge improvement over the minus 45 million delivered in Q1. As we discussed in Q1, we invested in fleet repositioning, i.e. moving vessels from the Pacific into the Atlantic, despite the incurring costs in that respect, but in anticipation of better rates in the Atlantic going forward. That has panned out as expected and has resulted in benefits from the fleet position in Q2, which we expect to continue during the rest of the year. Another important factor when interpreting these numbers is that within dry cargo we had a number of ships getting stuck in the Persian Gulf and that in our estimation added some 30 million dollars of extra costs in the first half of the year. So of course without these extraordinary costs, performance would have been even stronger. We continue to proactively manage our core fleet. The asset management team has been super active in the first half of the year, doing 29 sale and purchase transactions. The overall intention with this is of course to take money off the table, because the asset values are so high. But it is actually also a movement of the exposure within our portfolio away from the commoditized and large vessels such as CapeSize and Panamaxes and MRs and moving the capital into the smaller segments where specialized capabilities and customer relations are more important. So we are investing in handy size and multi-purpose vessels. And that actually means that even though we are taking sales gains off the table with our vessel sales, we are still investing in the fleet and maintaining a core fleet of around 80 units and maintaining a large amount of purchase options, providing good upside going forward. And with the fleet changes and the improvements in asset values, we saw our net asset value, as I said, improve to 466 kroner per share, compared to an increase of 23% since the beginning of the year. As you can see in the pie chart, around two thirds of the NAV is concentrated in dry cargo, 19% in tankers and the rest in other net assets with 14%, covering of course balance sheet debt, cash and other investments. And on the right-hand side, we provide some sensitivity analysis indicating that if the asset values and forward rates increase, for instance, by or change by 20%, that will either, if it's a decline, lead to an NAV of 333 kroners per share, or if it's an improvement, to an NAV of 625 million kroners per share. Turning to the market developments, it was overall strong markets in both dry and tankers. You can see here from the two top graphs that spot rates increased in dry by some 70% year on year and in MR about 63% year on year. That improvement was of course also visible in asset values, which increased both by 27 to 28% across the different segments. The supermax or the dry cargo market strength was driven by an actually strong demand picture, especially in thermal coal, iron ore and miner bogs, whereas the bauxite imports were a little bit weak despite having been a growth driver in the most recent quarters. The outlook for dry, in our view, is actually quite firm. We expect a 27 that is probably similar, slightly lower than 26, which has been a good year so far, driven again by strong demand, but certainly also by a modest supply outlook. The order book is increasing as people are chasing these returns in the market, but so far we don't think it's alarming and there is still an aging of the fleet, which will provide decent scrapping potential to offset the higher fleet growth going forward. On the tanker side, what is happening is of course disruptions in trade flows that are keeping spot rates high, even though fundamentals are looking weaker by the week here. So you have actually seen ton-mile growth being quite negative, and you have seen order books growing quite a lot, especially in crude, and that of course starts to imply that maybe there's some more uncertainty on the level of tanker rates going forward. Also in tankers, we see a very strong order book development. And even though there is also aging of the fleet there, it seems like the order book acceleration is somewhat running ahead of that aging, so that the scrapping potential is not enough perhaps to support the market fully. That then means that if we look at our guidance, we actually increased our guidance back in the early parts of July based on a strong performance in Q2. And we issued there a guidance of 120 to 190 million dollars. And now, after also a good performance over the summer, we have decided to increase the bottom to 140 million dollars, narrowing the interval to 140 to 190 million dollars of net profits for the full year. We are in terms of open capacity mainly exposed to dry cargo with some 4,500 open days and less in tankers where we have around 1,200 open days. But overall for the next coming years we are fairly highly covered in both the large dry cargo vessels types and within MR with a cover of 80% over the coming couple of years. And with that, I will hand you back to Jan and final words.