“TORM's leading presence in the product tanker market has ensured an
exceptional result for the first nine months, and we maintain our profit
forecast for 2008,” states Mikael Skov, CEO.
• Profit before tax for the first three quarters of 2008 was USD 290 million.
• TORM forecasts a pre-tax profit for 2008 of USD 355 - 370 million as
announced on 11 August 2008, when the full-year forecast was upgraded
(announcement no. 16/2008).
• TORM has unutilised credit facilities and cash in excess of USD 700 million.
• Due to the sharp fall in oil prices from the peak in July 2008 TORM has in
the third quarter unrealized mark-to-market adjustments on FFA and bunker hedge
of USD 6 million and on financial derivatives of USD 11 million.
• Equity amounted to USD 1,269 million (DKK 6,622 million) as at 30 September
2008, equivalent to USD 18.3 per share (DKK 95.6 per share), excluding treasury
shares.
• The market value of TORM's fleet, including the order book, exceeded book
value by USD 1,589 million at 30 September 2008, equalling USD 23.0 per share
(DKK 119.8 per share), excluding treasury shares.
• The market for transport of crude oil was firm during the first part of the
third quarter, while earnings in the latter part were better for transport of
refined oil products. Product tanker earnings have dropped in the fourth
quarter, although they remain at seasonably high levels. As at 31 October 2008,
TORM had covered 63% of the remaining earning days for 2008 in the Tanker
Division at USD 25,299 per day.
• Bulk freight rates dropped towards the end of the third and into the fourth
quarter, primarily due to lower demand for coal and iron ore and concern of the
global economic development. As at 31 October 2008, TORM had covered 78% of the
remaining earning days for 2008 in the Bulk Division at USD 45,550 per day.
• At the end of the third quarter, the Company's net interest bearing debt
totalled USD 1,575 million. More than half of the debt falls due in or after
2013.
• As at 31 October 2008, TORM had covered approximately 32% of the total
fleet's earning days in 2009.
• The historically good result in combination with the development of the share
price has led TORM to propose an interim dividend of DKK 4.50 per share. The
company will call in for an extraordinary general meeting.
• “Although the product tanker market, TORM's principal business area, is
currently doing well, we have taken a number of risk precautions both
internally and vis-à-vis customers, suppliers and financial counterparties in
order to limit the effects if the financial crisis continues. Our strong
balance sheet and financial resources provide a solid foundation for the
Company to manoeuvre in more difficult market conditions in 2009,” announces
CEO Mikael Skov.
Teleconference
A teleconference and webcast (www.torm.com) will take place today, 21 November
2008, at 17:00 Copenhagen time (CET). To participate, please call 10 minutes
before the call on tel.: +45 3271 4607 (from Europe) or +1 334 323 6201 (from
the USA). A replay of the conference will be available from TORM's website.
Contact
A/S Dampskibsselskabet TORM
Tuborg Havnevej 18
DK-2900 Hellerup
Denmark
Telephone: +45 39 17 92 00
Mikael Skov, CEO
Roland M. Andersen, CFO
