Like so many companies in its sector, Nordic Tankers has been feeling the pressure of low freight rates and glum market conditions but hope is on the horizon for the Copenhagen stock exchange listed company, which has found a viable solution to its high debt position through the decision to divide the company into two – selling its chemical tankers business to a company controlled by European investment firm Triton, while arranging a loan repayment freeze (until March 2013) for its other assets, as agreed with its creditors, Nordea and Danish Ship Finance.
Though the new firm will operate under the Nordic Tankers brand with CEO Tommy Thomsen at its helm, the product tanker activities will stay in the listed entity, with a change of name from “Nordic Tankers A/S” to “Nordic Shipholding A/S”. In future, Nordic Tankers will become a tonnage provider, through a fleet of six product tankers (37,000dwt-73,000dwt).
This restructuring has occurred as fellow Danish shipping giant Torm faces the consequences of poor shipping markets and plunging share prices which have resulted in debts of $1.87 billion for the firm – sobering circumstances which highlight the truly testing times the tanker industry must face.
Describing the challenges of the last 12 months for Nordic Tankers, Mr Thomsen said: “It’s been a difficult year. It’s been challenging because of the poor market conditions and for tankers in general, but particularly for chemical tankers, it’s been tough. But under the circumstances, we are happy that, for Nordic Tankers, we have been able to keep what we estimated in terms of expectations for the year – the communicated expectations for 2011 were fulfilled, as predicted and we were able to maintain that as the year progressed.”
