Making Money While Reducing Exposure

It is all well and good that companies are extracting themselves from their obligations at a price. DS Norden A/S (“Norden”), on the other hand demonstrates that it can do it while turning a profit. Of course it is advantaged by its long-term charering-in strategy. In this instance, the company agreed to sell 2 Panamax and 4 Handymax bulk carriers for a gross price of $175 million yielding a $13 million profit after it exercises the purchase options and resells the vessels.

Following the sales, NORDEN expects total proceeds of USD 247 million and a profit of USD 25 million from already agreed sales of vessels in 2009. In 2010, proceeds of USD 140 million and a profit of USD 30 million from already agreed sales of vessels are

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