Notice to the Stock Exchange no. 34 - 2008
Summary
Nordic Tankers A/S reported a profit of USD 2.6 million for the period 1
January to 30 September 2008. The Supervisory Board considers the financial
results to be unsatisfactory. Revenue for the third quarter amounted to USD
12.9 million and net profit to USD 2.8 million - and broken down by segment:
Revenue Net profit
Handy- size tankers USD 5.2 m USD 1.4 m
Chemical tankers - 4.5 - - 0.3
-
LR1 product tankers - 3.2 - - 1.6 -
Not allocated - -0.5
-
Pre-tax profit for the full year is expected to be in the region of USD 23
million. Of which the sale of NORDIC LISBETH contributes with USD 19 million.
Profit after tax is expected to be in the region of USD 20 million.
The results are primarily attributable to a weak first quarter with
extraordinary expenses relating to docking of one of the company's vessels as
well as lower freight rates and higher interest expenses than expected. In the
second and third quarters, freight rates were higher, which partly offset the
poor results posted in the first quarter. Higher than expected operating
expenses and extraordinary expenses, however, pull in the other direction.
As an element of the Supervisory Board's announced efforts to optimise the
value creation of the company, a binding agreement on the sale of the company's
LR1 product tanker NORDIC LISBETH was concluded at the end of July. The vessel
is sold at a price that is USD 19 million higher than the book value of the
vessel. Under the agreement, NORDIC LISBETH is to be delivered not later than
on 1 December 2008.
In August, the Supervisory Board of Nordic Tankers A/S presented the future
strategy.
Nordic Tankers A/S is still committed to developing into a significant company
within the shipping industry. The company will switch from being a passive
tonnage provider to being an active asset manager. One shipping segment will be
phased out and focus will remain on the other two segments.
The main elements of the strategy:
• Continued focus on shipping
• Development of own organisation
• Disposal of the LR1 product tankers
• Reduction from three to two tanker segments
• Development of the engagement in the remaining two segments
• Possible introduction of new shipping segments
The somewhat higher freight rates and higher operating expenses during the
period 1 January to 30 September 2008 are expected to continue in the last
quarter of 2008. Thus, Nordic Tankers expects revenue for the full year 2008 to
amount to about USD 46 million and EBITDA to amount to about USD 24 million.
For comments to this interim report, please contact
Geir Jansen CEO, telephone: +45 40 50 43 32