Attached please find the full report as PDF file. Dampskibsselskabet NORDEN A/S _______________________________________________________________________________ NASDAQ OMX Copenhagen A/S Announcement no. 39 Nikolaj Plads 6 19 November 2008 DK-1067 Copenhagen K Interim report - third quarter 2008 First three quarters - highlights The profit for the first three quarters of 2008 was USD 718 million corresponding to DKK 3.5 billion. The profit is 49% up on the same period last year and is the best result for the first three quarters in the Company's history. Seen on its own, the profit for the third quarter was USD 120 million. With an EBITDA of USD 197 million (+43%) and an EBIT of USD 273 million (+78%), the operating profit was very strong, but this is to some extent offset by negative fair value adjustments of certain hedging instruments as a result of the oil price development and FFA hedging. The dry cargo rates were dropping heavily during the quarter, but due to its long-term coverage of tonnage at reasonable rates, the Dry Cargo Department achieved an EBITDA of USD 171 million. In the third quarter, the Tanker Department reached its highest operating profit ever with an EBITDA of USD 25 million. The tanker department continues to benefit from its strengthened position in the attractive spot markets for product tankers. In the third quarter, the Company's operations generated a positive cash flow of USD 87 million. In the first three quarters, the Company's operations have generated a total cash flow of USD 410 million. NORDEN has taken advantage of the flexibility of its business model to promptly adjust capacity and activities to the significantly changed conditions in the dry cargo market. At the same time, NORDEN is positioning itself for the long-term possibilities. The number of short-term chartered vessels has been substantially reduced since 1 October, and in total, the Company can return more than 100 short-term chartered vessels before the end of 2008. The coverage has increased, and thus, the rest of the year's known capacity in the Dry Cargo Department de facto was fully covered at the beginning of November, and 66% of the known capacity in the Tanker Department had also been covered at this time. For 2009, the coverage was increased to 80% in the Dry Cargo Department and 34% in the Tanker Department. Based on the broker estimates which the Company has been able to collect at 1 November as well as received offers on some of NORDEN's owned vessels, the theoretical Net Asset Value (NAV) is estimated to have been DKK 280-320 per share at this time. At present, there is significant uncertainty regarding the estimation of the Company's NAV and theoretical NAV. NORDEN adjusts the total expectations for the annual profit for 2008 to be in the range of USD 740-800 million, against earlier announced USD 800-880 million. The adjustment is essentially due to the dropping oil prices, which trigger large negative fair value adjustments of certain hedging instruments (IAS 39). For the whole year, the IAS 39 adjustments are estimated to amount to USD -65 million, whereas the expected adjustments amounted to USD -10 million in the announcement of 1 October. The expectations for the Tanker Department remain an operating profit (EBITDA) of USD 60-70 million, whereas the EBITDA expectations in the Dry Cargo Department are narrowed to USD 500-530 million due to the drop in rates, loss on one counterparty and postponement of a number of profitable cargoes. This is, however, somewhat counterbalanced by earnings on new business and savings. Mogens Hugo Carsten Mortensen Chairman of the Board President & CEO Today at 11.00 hours (CET), NORDEN will hold an information meeting at 52, Strandvejen, DK-2900 Hellerup, where CEO Carsten Mortensen and Senior Vice President Martin Badsted will comment on the third quarter and the expectations for the whole year. Furthermore, a telephone conference will be held at 16.00 hours (CET). By 15.55 hours (CET) at the latest, Danish participants should dial +45 3271 4767 while participants from abroad should dial +44 (0) 208 817 9301 or +1 718 354 1226. The telephone conference can also be followed live at www.ds-norden.com where the accompanying presentation also is available. Further information: CEO Carsten Mortensen, tel. +45 3315 0451. _______________________________________________________________________________ Dampskibsselskabet NORDEN A/S 52, Strandvejen DK-2900 HELLERUP www.ds-norden.com
Dampskibsselskabet NORDEN A/S, Interim report - third quarter 2008
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