Strategy

Long-term growth in challenging times

Based on NORDEN’s vision, the strategy plan Long-term Growth in Challenging Times defines a number of growth and earnings targets for the years 2011-13 and launches initiatives which will also enhance our strategic prospects beyond this period. The strategy plan positions NORDENs for long-term growth under various market conditions and also focuses on a financially strong shipping company’s options in cyclical markets.

The strategy is designed to produce solid, long-term earnings and solid cash flows and withstand volatile market conditions to the extent possible.

Through dividends, share buybacks and share price increases, we aim to ensure that our shareholders receive higher total returns than those of comparable companies. For the financial years 2006-10, NORDEN distributed approx. DKK 3.5 billion to the shareholders. More on dividends

Dry cargo: Among the global market leaders

Cargo volume growth of 15% p.a.

NORDEN strives to be the first choice for large, well-established cargo owners, and we therefore aim to increase our market share with mining and commodity companies, energy producers, construction groups, commodity-intensive industries, etc. Consistent focus on concluding new COA’s is to produce average annual growth of 15% in both transported cargo and contractually secured cargo. This will also allow us to create new activity as operator in connection with the routes in the cargo programme.

We want to be among the global market leaders in Post-Panamax, Panamax, Supramax/Handymax and Handysize vessels types and active in the Capesize vessel type.

Strategic alliances

We will enter into more joint ventures and strategic partnerships, for example sharing cargoes and vessels with selected customers. A growing number of customers have a strategic interest in participating in transports, and by virtue of its values, financial strength and long-term focus, NORDEN holds a strong position towards such customers.

Core fleet expansion

We will continue to expand the cost-efficient and modern core fleet through new-buildings, long-time charters and acquisitions. At the same time, we will optimise our order book, for example by selling vessels with a view to reinvesting in tonnage with better specifications and for later delivery. Dry cargo newbuildings

See more details on NORDENs dry cargo fleet and on dry cargo.

Tanker: Increase owned fleet

Increase owned fleet to +25 vessels

NORDEN wants to be a greater player in the product tanker market with focus on the Handysize and MR vessel types.

A main target for Tankers is to take advantage of the challenging market conditions to invest in quality tonnage at attraicive prices. During 2011-13, we will seek to expand the owned fleet to more than 25 vessels. A larger owned fleet will provide economies of scale and it is easier for us to meet oil companies’ stricter quality and safety requirements on vessels controlled by us. The expansion of the fleet is combined with consistent efforts to ensure that NORDEN remains one of the best companies in terms of quality, safety, work environment and other parameters. Tanker newbuildings

Daily earnings above spot rates

Strict cost control, optimisation of systems and processes, cultivation of new business and good operator activities are factors that are to help ensure that our daily earnings will continue to be above spot rates. 

More details on NORDENs tanker fleet  and on tanker 

NORDEN’s goal is to be a leading shipping company and the preferred partner in global tramp shipping 

The Company seeks to achieve this goal through the above strategy plan and:

• Organisational development 
• Risk management 
• Financial strength 
• Corporate Social Responsibility 

Organisational development

Long-term growth over the strategy period places heavy demands on our organisation. There is particular focus on the operation and manning of a growing fleet of owned vessels in a cost and energy efficient manner and with high standards. Moreover, it is of vital importance that we continue to strengthen systems, improve knowledge sharing, make processes more flexible, and that we continue to recruit, develop and retain first-class managers and employees. In order to do so, NORDEN offers competitive base salaries and pension schemes combined with bonuses, employee shares and share options, and we offer attractive career opportunities.

NORDEN also focuses on recruiting shipping trainees and ships' officer cadets to secure our future development.

Partner focus

NORDEN is dedicated to treat shipyards and customers as partners. Although marginally better terms might during certain periods be achieved by changing partners, we are convinced that building and maintaining lasting relations with long-term partners provides the strongest basis for sustainable growth. By having representative offices close to customers on main markets, we strive to continually improve customer service and build on mutually valuable partnerships.

Risk management

Active risk management is a key element in our business model. We actively manage the primary commercial risks relating to the shipping market: fluctuations in freight rates and prices of vessels. We continually adapt the fleet capacity and costs through a flexible business model, and.we equally adjust coverage to market conditions and expectations. Other risks not related to the shipping market – bunker prices, exchange rates etc. – are hedged in so far as possible. More about NORDENs Risk Management & Risk Profile

Financial strength

NORDEN maintains strong financial resources in order to be able to take advantage of the opportunities arising in volatile markets. Shipping is a cyclical business and strong capital resources are key for our ability to withstand fluctuations. Also, the  capital structure will continuously reflect our considerable liabilities in the form of future time charter payments and payments to shipyards.

Corporate Social Responsibility

Safety and environment are high on NORDEN’s list of priorities – we therefore operate only modern, double-hulled tanker tonnage and continuously work on minimising propulsion resistance and optimising fuel consumption on owned vessels in order to cut CO2 and other emissions. We recognise a responsibility for climate changes, the environment, occupational health, employee conditions, safety at sea and other Corporate Social Responsibility (CSR) issues. A CSR Executive Body is striving to ensure that NORDEN has a systematic management approach to CSR. More details on CSR

 More details on NORDEN’s strategy in the pdf Annual Report 2010 page 5