Productivity Key to Progress in European Shipbuilding

Nordstrom and Thulin Declare Jubilee Dividend

Swedish bulk shipping group Nordstrom and Thulin (N&T) closed its 140th year with more than doubled profits, and is making a similar payout for shareholders, by way of a jubilee dividend. Profits after financial items jumped from Kr54m to Kr140m ($22.8m) and earnings per share advanced from Kr1.86 to Kr3.86. The directors are therefore recommending that the dividend payout should increase from Kr1 to Kr2. Group liquidity at the year end slipped back from Kr938m to Kr783m, and available liquid funds, including unutilized bank overdraft facilities amounted to Kr696m, compared with Kr762m in the previous year. The decline can partly be attributed to increased investment during the year, including a third vessel for the Gotland ferry service.

At the end of 1990, an appraisal of the fleet was carried out by two independent brokers. Based on their appraisal, the net asset value before tax was calculated to be Kr35 per share on a fully diluted basis, against Kr40 in 1989. The core deep sea fleet comprises a 150,000 dwt combination carrier, and five cape sized bulk carriers ranging from 100,000 to 150,000 dwt. Two of the ships are operated on charter, and the company also has three Cape sized tankers on charter. N&T has two 160,000 dwt bulk carriers on order in Poland, and three smaller product tankers under construction. During the year, the company acquired an additional 25% in the two bulk carrier newbuildings, which have been chartered from 1992 with purchase options. Commenting on the results, Nordstrom President Ronald Bergmann told Marine Money “Our results were not greatly affected by the Gulf crisis, and the improvement reflected a general increase in the freight markets. There has also been a further improvement in the market during the first quarter.”

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