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2020: NORDEN secures USD $54 million, 26-scrubber order

16 Aug 2018

Copenhagen listed dry cargo and tanker shipping firm Dampskibsselskabet NORDEN A/S has entered into a USD $54 million, 26-scrubber order during the second quarter (Q2) of 2018, it says.

“Throughout the last 18 months, NORDEN has evaluated how the sulphur cap will affect both the shipping and bunker markets,” it says.

“The cost difference between low sulphur and high sulphur fuel oil is expected to increase significantly for a sustained period, making scrubbers an attractive choice for compliance.

“Therefore, NORDEN has during 2018 secured installation of 26 scrubbers with options for five more.”

According to NORDEN, two scrubbers will be installed on newbuildings, 16 retrofitted on selected, owned vessels, and the remaining eight will be installed on long-term chartered tonnage; it did not specify which vessel types will be upgraded with scrubbers.

The costs, broken down, are estimated to amount to approximately USD $41 million on owned vessels and approximately USD $13 million in increased time charter hire over the coming years.

“Recognising uncertainties, NORDEN considers the investment highly attractive with an estimated financial return of approximately 25% within 5 years on own vessels with significant upside,” it explains.

NORDEN operates a mix of owned and chartered tonnage including 71 tankers and 63 dry bulk vessels, according to latest Q2 2018 figures.

Photo credit: Dampskibsselskabet NORDEN A/S 
Published: 16 August, 2018

 

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