Analyst Comment

HCA Market Close 28.10.22: Featuring NORDEN

By Philip CoombesEquity Research Analyst

HCA Market Close 28.10.22 – DS NORDEN considers an extraordinary dividend and HC Andersen Capital publishes a new robotics report.

Market Movements:

Denmark: OMX:C25 (+0.11%) ; Sweden: OMX:S30 (+0.31%) ; Norway: OBX:OSL (+0.10%) ; S&P 500 (+1.85%) ; Nasdaq (+2.10%); Stoxx 600 (+0.14%)

Market Drivers:

Markets gained, pulled higher by strong apple earnings.

Markets gained today, led by Apple and oil stocks. The move in Apple was sufficient to outweigh the drag of Amazon’s disappointing earnings helping the Nasdaq to lead markets higher.

Corporate earnings this week have been a key driver of the market. The weak earnings from bellwethers such as Meta and Google helped drive Treasury yields lower on expectations of a less aggressive Fed. Looking beneath the hood, a shift has started moving capital away from the new economy (mega-cap tech) and towards the old economy, with oil and industrials outperforming.

Snacks from the HCA Platform:

DS NORDEN announced a confirmation of rumours that the company is considering an extraordinary dividend of DKK 25 with its Q3 2022 earnings. The extraordinary dividend would return approximately USD 125m to shareholders, taking total dividends thus far for 2022 to USD 275m. Given NORDEN’s dividend policy to return +50% of its result for the year, an extraordinary dividend would take total dividends paid for the year to 75% of 50% of its mid-range guidance for the year 2022. Despite the news, the shares fell 4.1% today. NORDEN will decide on whether to issue an extraordinary dividend on 3 Nov at the company’s ordinary board meeting.

HC Andersen Capital published a new Robotics sector report today, giving investors an introduction to the macro themes of nearshoring and deglobalisation which, among other things, can be a driver for the industry over the next decade. To learn more about the Danish and global robotics sector, read the report here: https://lnkd.in/eXBVPpBR

Disclaimer: HC Andersen Capital receives payment from the companies for a #DigitalIR agreement./ Philip Coombes 18:48

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NORDEN is an internationally operating shipping company with 12 global offices, headquartered in Copenhagen, Denmark, and listed on Nasdaq OMX Copenhagen. The company is present in the dry cargo and product tanker markets with a combination of operator and asset trading activities. NORDEN’s trading-oriented business model is based on the two business units ‘Assets & Logistics’ and ‘Freight Services & Trading’ – dividing the business into asset trading and operator activities. The company’s business activities are based on an asset-light trading strategy, only owning a small percentage (~5%) of its total operated vessel fleet consisting of close to 500 vessels. The agility of the business model enables NORDEN to continuously adjust short-term market exposure towards dry cargo and product tanker market developments while capitalizing on asset trading opportunities. In-house data and advanced analytics, risk management, and market research provide a data-driven approach to shipping, making proactive use of volatile markets.