|Norden's bunker costs up $101m in 2021|
|Shipper spent $659m on marine fuel last year — an 18.1% rise.
|D/S Norden door plate. Image credit: D/S Norden|
|Updated on 04 Mar 2022 16:37 GMT
|D/S Norden reports that bunker expenses rose by just over $100m last year compared to 2020.
The total amount spent on marine fuel in 2021 was $659m, representing a rise of $101.1m, or 18.1 percent.
Norden: Bunker costs, 2017-2021
Norden also sold 545,756 tonnes at an average price of $548.20 for 2022, and 60,000 tonnes with a mean value of $451.80 for 2023.
The Danish owner-operator notes that it uses bunker swaps with price reference in Rotterdam to hedge bunker prices west of Suez, and in Singapore to hedge bunker prices east of Suez. This is the result of an analysis of the structure of the bunker market in which it concluded that Rotterdam and Singapore prices are separate and identifiable components of bunker prices in other ports.
In terms of bunker price risk, Norden estimates that a 10 percent drop in bunker prices at year-end would negatively impact equity by $12m.
Key financial results for 2021
In its financial results for the year, Norden posted a net profit of $205m, which was the company's best result in 11 years.
Revenue for 2021 increased by $954m, or 36.7 percent, to $3,551.8m, whilst EBITDA jumped $189.7m, or 55.4 percent, to $532.2m.