”Our first quarter profit after tax of USD 40 million is in line with
expectations and satisfactory in light of the difficult markets. Our Greater
Efficiency Power project is well on the way to ensure an even more efficient
future operation of the Company. Furthermore we have obtained a high degree of
coverage of the remaining earning days in 2009,” states Mikael Skov, CEO.
• The profit for the first quarter of 2009 was USD 39 million before tax and
USD 40 million after tax.
• TORM maintains the pre-tax profit forecast for 2009 of USD 100 - 140 million
incl. sale of vessels as stated on 14 May 2009 (announcement no. 7/2009).
However due to the development in freight rates there is considerable
uncertainty about the profit expectations.
• Cash flows from operating activities amounted to USD 61 million for the first
quarter.
• The Company's net interest-bearing debt was USD 1,615 million, and at the end
of the first quarter the Company's undrawn credit facilities and cash amounted
to approx. USD 600 million.
• Earnings per share (EPS) were USD 0.6 for the first quarter of 2009 against
USD 0.8 for the corresponding period of 2008.
• Return on Invested Capital (RoIC) was 6.8% p.a., and Return on Equity (RoE)
was 12.1% p.a. for the quarter. Equity amounted to USD 1,341 million (DKK 7.508
million) at 31 March 2009, equaling a 5% increase. Subsequently, in April, a
dividend of DKK 291 million (USD 51 million) was distributed for 2008. At 31
March 2009, the market value of the Company's fleet exceeded the book value by
USD 31 million (DKK 172 million), corresponding to USD 0.4 per share (DKK 2.5)
excluding treasury shares.
• The Company's “Greater Efficiency Power” project is progressing according to
plan. The project is still expected to contribute USD 40 - 60 million savings
on an annual basis effective from 2010.
• Product tanker rates began the year at a high level, only to drop to
historical lows in mid-quarter. After the end of the quarter, rates have
recovered somewhat from these low levels. The rate performance during the
period is in line with the normal seasonal fluctuations as the winter season
ends and oil transports diminish. As a consequence of reduced oil consumption
and the global recession, this year's drop in rates was more severe than usual.
At 31 March 2009, TORM had covered 42% of the remaining earning days in the
Tanker Division at USD/day 21,334.
• Following the collapse in bulk rates towards the end of 2008, earnings in the
first quarter of 2009 were on average higher than at the end of 2008. At 31
March 2009, TORM had covered 13% of the remaining earning days in the Bulk
Division at USD/day 13,434.
Teleconference TORM's Management will review the report on the first quarter of
2009 in a teleconference and webcast (www.torm.com) today, 19 May 2009, at
15.00 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 TORM A/S Telephone: +45 39 17 92 00
Tuborg Havnevej 18 Mikael Skov, CEO
DK-2900 Hellerup Roland M. Andersen,
CFO
Denmark
Million USD Q1 2009 Q1 2008 2008
Income statement
Net revenue 258.8 255.0 1.183.6
Time charter equivalent earnings (TCE) 199.1 200.1 905.9
Gross profit 97.5 110.6 537.8
EBITDA 80.7 92.7 572.3
Operating profit 48.9 62.0 446.3
Profit before tax 39.2 52.1 360.1
Net profit 39.6 52.2 361.4
Balance sheet
Total assets 3,286.6 3,156.3 3,317.4
Equity 1,340.7 1,129.6 1,278.9
Total liabilities 1,945.9 2,026.7 2,038.5
Invested capital 2,950.7 2,822.8 2,822.4
Net interest bearing debt 1,615.4 1,705.9 1,549.9
Cash flow
From operating activities 61.2 63.7 384.7
From investing activities -126.7 -221.2 -262.4
Thereof investment in tangible fixed assets -129.5 -102.9 -377.8
From financing activities -4.1 129.3 -59.0
Net cash flow -69.6 -28.2 63.3
Key financial figures
Margins:
TCE 76.9% 78.5% 76.5%
Gross profit 37.7% 43.4% 45.4%
EBITDA 31.2% 36.4% 48.3%
Operating profit 18.9% 24.3% 37.7%
Return on Equity (RoE) (p.a.)*) 12.1% 18.9% 30.6%
Return on Invested Capital (RoIC) (p.a.)**) 6.8% 9.1% 16.4%
Equity ratio 40.8% 35.8% 38.6%
Exchange rate USD/DKK, end of period 5.60 4.72 5.28
Exchange rate USD/DKK, average 5.72 4.97 5.09
Share related key figures
Earnings per share, EPS USD 0.6 0.8 5.2
Diluted earnings per share, DEPS USD 0.6 0.8 5.2
Cash flow per share, CFPS USD 0.9 0.9 5.6
Share price, end of period
(per share of DKK 5 each) DKK 43.5 140.5 55.5
Number of shares, end of period Mill. 72.8 72.8 72.8
Number of shares (excl. treasury shares),
average Mill. 69.2 69.2 69.2
*) The gain from sale of vessels is not annualized when calculating the Return
on Equity.
**)The gain from sale of vessels is not annualized when calculating the Return
on Invested Capital.
Profit by division
Million USD Q1 2009
Tanker Division Bulk Division Not Allocated Total
Revenue 210.1 48.7 0.0 258.8
Port expenses, bunkers and commissions -56.4 -2.4 0.0 -58.8
Freight and bunkers derivatives -0.9 0.0 0.0 -0.9
Time charter equivalent earnings 152.8 46.3 0.0 199.1
Charter hire -39.7 -14.4 0.0 -54.1
Operating expenses -43.4 -4.1 0.0 -47.5
Gross Profit 69.7 27.8 0.0 97.5
Profit from sale of vessels 0.0 0.0 0.0 0.0
Administrative expenses -18.0 -2.1 0.0 -20.1
Other Operating income 2.4 0.0 0.0 2.4
Share of results of jointly controlled entities 1.2 0.0 -0.3 0.9
EBITDA 55.3 25.7 -0.3 80.7
Depreciation and impairment losses -29.8 -2.0 0.0 -31.8
Operating profit 25.5 23.7 -0.3 48.9
Financial items, net - - -9.7 -9.7
Profit/(Loss) before tax - - -10.0 39.2
Tax - - 0.4 0.4
Net profit - - -9.6 39.6
The activity that TORM owns in a 50/50 joint venture with Teekay and the 50%
ownership of FR8 Holding Pte. Ltd. is included in "Not-allocated".
Tanker Division The Tanker Division reported an operating profit of USD 25.5
million for the first quarter of 2009.
Product tanker rates began the year at a high level, only to drop to historical
lows in mid-quarter. After the end of the quarter, rates have for some routes
recovered from these low levels.
Freight rates starting the year strongly and then dropping towards the end of
the first and into the second quarter is in line with normal seasonal
fluctuations as the winter season ends and oil transports diminish. As a
consequence of reduced oil consumption and the global recession, this year's
drop in rates was more severe than normally.
The tanker market was affected by the following factors in the first quarter of
2009:
Positive impact:
• Long transports of gasoil from the Far East to Europe and of naphtha from
Europe to the Far East.
• Lower spot prices than forward prices for refined oil products meant
increased oil trader activity, making it profitable to use tankers as floating
storage. This reduced the product tanker fleet, thus supporting freight rates.
• Discharging delays prolonged port calls, which again reduced the available
product tanker fleet to the benefit of freight rates.
Negative impact:
• A large supply of newbuildings for delivery in 2009. An additional 45 LR2, 44
LR1 and 188 MR vessels are expected to be delivered, equalling a growth of 42%.
• The decline in global oil consumption reduced the need for oil product
transports. Energy International Administration (EIA) assesses that the global
oil consumption will decline by 1.4 million barrels in 2009, equalling a drop
in oil consumption of 2%.
• As a consequence of the global recession, a mild winter and few delays at the
Bosporus Strait, freight rates for crude oil transports in the Mediterranean
were low, affecting the Company's LR2 fleet.
• A generally negative sentiment in the crude oil and the refined product
markets.
TORM's Tanker Division achieved freight rates in the first quarter of 2009
which, relative to the first quarter of 2008, were 12% lower for the LR1
segment and 12% lower for the MR segment, whereas the rates obtained for the
LR2 segment were 23% lower. As a result of a decline in crude oil transports,
the LR2 fleet reported a significant drop in earnings, underperforming the
market in general. LR1 and MR fleet earnings were affected by the general
global economic downturn. With a relatively high coverage, the SR vessels
recorded reasonable earnings during the first quarter. At 31 March 2009, TORM
had covered 42% of the remaining earning days in the Tanker Division at USD/day
21,334.
Tanker Division Q1 08 Q2 08 Q3 08 Q4 08 Q1 09
Change
Q1 08
- Q1 09 12 month avg.
LR2 (Aframax, 90-110,000 DWT)
Available earning days 908 926 970 1,104 1,167 29%
TCE per earning day from the LR2 Pool 28,370 32,327 45,267 37,009 24,192 -15%
TCE per earning day1) 28,538 32,084 48,421 31,862 21,977 -23% 33,586
Operating days 819 849 963 1,069 1,080 32%
Operating expenses per operating day2) 8,646 8,359
7,319 8,564 7,507 -13% 7,937
LR1 (Panamax 75-85,000 DWT)
Available earning days 1,822 1,764 1,804 2,009 1,864 2%
TCE per earning day from the LR1 Pool 24,630 28,370 34,700 35,140 22,503 -9%
TCE per earning day1) 24,630 28,370 34,700 35,140 21,755 -12% 29,991
Operating days 819 819 828 828 810 -1%
Operating expenses per operating day2) 8,014 8,262
7,798 7,478 7,852 -2% 7,848
MR (45,000 DWT)
Available earning days 2,490 2,576 2,668 2,796 3,174 27%
TCE per earning day from the MR Pool 22,527 25,615 29,102 22,282 22,566 0%
TCE per earning day1) 22,716 23,158 26,458 22,298 19,802 -13% 22,929
Operating days 2,366 2,441 2,484 2,400 2,497 6%
Operating expenses per operating day2) 8,267 8,172
7,609 7,653 8,227 0% 7,915
SR (35,000 DWT)
Available earning days 1,088 1,092 1,100 1,102 1,145 5%
TCE per earning day1) 21,034 21,036 20,078 22,338 20,963 0% 21,104
Operating days 910 910 920 920 969 6%
Operating expenses per operating day2) 6,725 6,644
6,193 6,633 7,662 14% 6,783
1) TCE = Time Charter Equivalent Earnings = Gross freight income less bunker,
commissions and port expenses.
2) Operating expenses are related to owned vessels.
Bulk Division For the first quarter of 2009, the Bulk Division recorded an
operating profit of USD 23.7 million, including compensation in the amount of
USD 26 million for early returns of four Panamax bulk carriers, which was
already announced in the Annual Report for 2008. The compensation has been
recognized as revenue in the first quarter of 2009.
In the first quarter, bulk rates were very volatile, but higher than at the end
of 2008. Freight rates were positively affected by rising iron ore imports to
China, which at 131.4 million tons in the first quarter reached a historical
high, equaling an increase of 19% compared to the first quarter of 2008.
Moreover, 99 bulk carriers, equaling 4.0 million dwt, were scrapped during the
first quarter. At 31 March 2009, TORM had covered 13% of the remaining earning
days in the Bulk Division at USD/day 13,434.
Bulk Division Q1 08 Q2 08 Q3 08 Q4 08 Q1 09
Change
Q1 08
- Q1 09 12 month avg.
Panamax (60-80,000 DWT)
Available earning days 1,394 1,367 1,421 1,466 1,458
TCE per earning day1) 36,909 50,568 49,888 38,958 13,929 -62% 38,336
Operating days 565 585 552 600 622
Operating expenses per operating day2) 7,194 6,723 6,261
5,352 6,798 -6% 6,284
1) TCE = Time Charter Equivalent Earnings = Gross freight income less bunker,
commissions and port expenses.
2) Operating expenses are related to owned vessels.
Other activities Other (non-allocated) activities consist of investments in
joint ventures of USD -0.3 million, financial items of USD -9.7 million and tax
of USD 0.4 million.
Fleet development At the end of the first quarter of 2009, TORM's fleet
totalled 68 vessels, 61 of which were tankers and seven bulk carriers.
31 December 2008 Addition Disposal 31 March 2009
LR2 / Aframax 12.5 12.5
LR1 / Panamax 7.5 7.5
MR 29.0 1 30.0
SR 10.0 1 11.0
Tankers 59.0 2 61.0
Panamax 6.0 1 7.0
Bulkers 6.0 1 7.0
Total 65.0 3 68.0
Planned No vessels were contracted in the first quarter of 2009.
fleet changes
Pools At 31 March 2009, the three product tanker pools that TORM operates
comprised 93 vessels. To this should be added 24 vessels which TORM operates
outside pools. By the end of 2009, the three pools are expected to comprise a
total of 102 vessels and 21 vessels outside the pools.
Results
First quarter The first quarter of 2009 showed a gross profit of USD 98
million, against USD 111 million for
2009 the corresponding quarter of 2008. Profit before depreciation (EBITDA) for
the period was USD 81 million, against USD 93 million for the first quarter of
2008. The decline in gross profit and EBITDA was due to generally lower freight
rates for product tankers as well as bulk carriers.
In the first quarter of 2009, depreciation amounted to USD 32 million.
The operating profit for the first quarter of 2009 was USD 49 million, against
USD 62 million in the same quarter of 2008. Of this amount, the Tanker and Bulk
Divisions contributed USD 26 million and USD 24 million, respectively. In the
first quarter of 2009, financial items amounted to USD -10 million, against USD
-10 million in the same quarter of 2008.
Profit after tax was USD 40 million, against USD 52 million in the first
quarter of 2008.
Assets Total assets fell from USD 3,317 million to USD 3,287 million in the
first quarter of 2009.
Liabilities The Company's net interest-bearing debt rose from USD 1,550 million
to USD 1,615 million, primarily as a consequence of a large investment program
in the first quarter of 2009. At the end of the first quarter, the Company had
cash and undrawn credit facilities amounting to approx. USD 600 million at its
disposal and considers this adequate for the existing newbuilding program.
Equity In the first quarter of 2009, equity rose from USD 1,279 million to USD
1,341 million, primarily as a result of earnings during the period. With lower
total assets and higher equity, the Company's equity as a percentage of total
assets rose from 38.6% at 31 December 2008 to 40.8% at 31 March 2009.
At 31 March 2009, TORM held 3,556,364 treasury shares, corresponding to 4.9% of
the Company's share capital, which is unchanged compared with 31 December 2008.
Subsequent events On 14 May 2009, TORM sold TORM Martha and TORM Baltic at a
price of USD 42.5 million.
Outlook TORM maintains the profit forecast before tax for 2009 of USD 100-140
million incl. sale of vessels, as stated in Stock Exchange Announcement No. 7
of 14 May 2009. However due to the development in freight rates there is
considerable uncertainty about the profit expectations.
Sensitivity At the beginning of the second quarter of 2009, 38% of the earning
days of the Company's tankers and bulk carriers were covered for the remainder
of the year.
Hedging as per 31 March 2009
Total days Covered days Covered
in % USD/day
Product tank
LR2 4,263 909 21% 29,145
LR1 5,826 2,637 45% 22,760
MR 11,690 5,017 43% 20,863
SR 3,514 2,059 59% 17,207
Dry bulk
Panamax 4,496 583 13% 13,434
Total 29,789 11,205 38% 20,923
Safe Harbor Matters discussed in this release may constitute forward-looking
statements. Forward-looking statements reflect our
Forward-looking current views with respect to future events and financial
performance and may include statements concerning plans,
statements objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than statements of
historical facts. The forward-looking statements in this release are based upon
various assumptions, many of which are based, in turn, upon further
assumptions, including without limitation, Management's examination of
historical operating trends, data contained in our records and other data
available from third parties. Although TORM believes that these assumptions
were reasonable when made, because these assumptions are inherently subject to
significant uncertainties and contingencies which are difficult or impossible
to predict and are beyond our control, TORM cannot assure you that it will
achieve or accomplish these expectations, beliefs or projections.
Important factors that, in our view, could cause actual results to differ
materially from those discussed in the forward looking statements include the
strength of world economies and currencies, changes in charter hire rates and
vessel values, changes in demand for “tonne miles” of oil carried by oil
tankers, the effect of changes in OPEC's petroleum production levels and
worldwide oil consumption and storage, changes in demand that may affect
attitudes of time charterers to scheduled and unscheduled dry-docking, changes
in TORM's operating expenses, including bunker prices, dry-docking and
insurance costs, changes in governmental rules and regulations including
requirements for double hull tankers or actions taken by regulatory
authorities, potential liability from pending or future litigation, domestic
and international political conditions, potential disruption of shipping routes
due to accidents and political events or acts by terrorists. Risks and
uncertainties are further described in reports filed by TORM with the US
Securities and Exchange Commission, including the TORM Annual Report on Form
20-F and its reports on Form 6-K.
Forward looking statements are based on management's current evaluation, and
TORM is only under obligation to update and change the listed expectations to
the extent required by law.
The TORM share
The price of a TORM share was DKK 43.5 as of 31 March 2009, against DKK 55.5 at
the beginning of the year - a reduction of DKK 12 per share, corresponding to a
reduction of 22% in the quarter.
Accounting policies
The presented interim report for the first quarter of 2009 has been prepared in
accordance with IAS 34 "Interim Financial Reporting", as adopted by the EU, and
additional Danish regulations governing presentation of interim reports by
listed companies.
Except for the instances mentioned below, the interim report has been prepared
using the accounting polices as for the Annual Report for 2008. The accounting
policies are described in more detail in the Annual Report for 2008.
As from 1 January 2009, TORM has implemented the following new or amended
standards and interpretations: Amendment to IAS 1 "Presentation of Financial
Statements", amendment to IAS 23 "Borrowing Costs", smaller changes from
Improvements to IFRSs, IFRIC 12 "Service Concission Agreements" and IFRIC 13
"Customer Loyalty Programmes". The new or amended standards and interpretations
have not affected recognition and measurement in TORM's interim report for the
first quarter of 2009. The implementation of the amendments to IAS 1 has
changed the presentation in the interim report as Comprehensive income is
presented in a separate statement. Comprehensive income was previously included
in the statement of changes in Equity.
The interim report for the first quarter of 2009 is unaudited, in line with the
normal practice.
Information
Teleconference
TORM will host a telephone conference for financial analysts and investors on
19 May 2009 at 15:00 Copenhagen time (CET), reviewing the interim report for
the first quarter of 2009. The conference call will be hosted by Mikael Skov,
CEO, and Roland M. Andersen, CFO, and will be conducted in English.
To participate, please call 10 minutes before the conference on tel.: +45 3271
4607 (from Europe) or +1 334 323 6201 (from the USA). The teleconference will
also be webcast via TORM's website www.torm.com. The presentation material can
be downloaded from the website.
Next reporting
TORM's financial report for the first half of 2009 will be released on 20
August 2009.
Statement by the Board of Directors and Management on the Interim Report
The Board of Directors and Management have considered and approved the interim
report for the period 1 January - 31 March 2009.
The interim report, which is unaudited, has been prepared in accordance with
the general Danish financial reporting requirements governing listed companies,
including the measurement and recognition provisions in IFRS which are expected
to be applicable for the Annual Report 2009.
We consider the accounting policies applied to be appropriate, and in our
opinion the interim report gives a true and fair view of the Group's assets,
liabilities, financial position and of the results of operations and
consolidated cash flows.
Copenhagen, 19 May 2009
Management Board of Directors
Mikael Skov, CEO Niels Erik Nielsen, Chairman
Roland M. Andersen, CFO Christian Frigast, Deputy Chairman
Peter Abildgaard
Lennart Arrias
Margrethe Bligaard
Bo Jagd
Jesper Jarlbæk
Gabriel Panayotides
Angelos Papoulias
E. Michael Steimler
Nicos Zouvelos
About TORM TORM is one of the world's leading carriers of refined oil products
as well as a significant participant in the dry bulk market. The Company
operates a combined fleet of more than 130 modern vessels, principally through
a pooling cooperation with other respected shipping companies who share TORM's
commitment to safety, environmental responsibility and customer service.
TORM was founded in 1889. The Company conducts business worldwide and is
headquartered in Copenhagen, Denmark. TORM's shares are listed on the
Copenhagen Stock Exchange (ticker TORM) as well as on the NASDAQ (ticker TRMD).
For further information, please visit www.torm.com.
Income statement
Million USD Q1 2009 Q1 2008 2008
Revenue 258.8 255.0 1,183.6
Port expenses, bunkers and commissions -58.8 -54.5 -264.1
Freight and bunkers derivatives -0.9 -0.4 -13.6
Time charter equivalent earnings 199.1 200.1 905.9
Charter hire -54.1 -46.0 -193.8
Operating expenses -47.5 -43.5 -174.3
Gross profit (Net earnings from shipping activities) 97.5 110.6 537.8
Profit from sale of vessels 0.0 0.0 82.8
Administrative expenses -20.1 -19.7 -89.9
Other operating income 2.4 3.6 14.5
Share of results of jointly controlled entities 0.9 -1.8 27.1
EBITDA 80.7 92.7 572.3
Depreciation and impairment losses -31.8 -30.7 -126.0
Operating profit 48.9 62.0 446.3
Financial items -9.7 -9.9 -86.2
Profit before tax 39.2 52.1 360.1
Tax 0.4 0.1 1.3
Net profit 39.6 52.2 361.4
Earnings per share, EPS
Earnings per share, EPS (USD) 0.6 0.8 5.2
Earnings per share, EPS (DKK)*) 3.3 3.7 26.6
*) The key figures have been translated from USD to DKK using the average
USD/DKK exchange change rate for the period in question.
Statement of comprehensive income
Million USD Q1 2009 Q1 2008 2008
Net profit for the period 39.6 52.2 361.4
Other comprehensive income:
Exchange rate adjustment arising on translation
of entities using a measurement currency different
from USD -0.1 0.2 0.0
Fair value adjustment on hedge instruments 16.4 -2.4 -56.5
Value adjustment on hedge instruments transferred
to income statement 4.8 -1.9 15.1
Value adjustment on hedge instruments transferred
to vessels -1.2 - -
Fair value adjustment on available for sale investments -1.0 -1.1 -4.8
Transfer to income statement on sale of available for sale
investments 0.0 0.0 -2.6
Other comprehensive income after tax 18.9 -5.2 -48.8
Total comprehensive income 58.5 47.0 312.6
Income statement quarter by quarter
Million USD Q1 08 Q2 08 Q3 08 Q4 08 Q1 09
Revenue 255.0 286.6 336.6 305.4 258.8
Port expenses, bunkers and commissions -54.5 -59.4 -76.5 -73.7 -58.8
Freight and bunkers derivatives -0.4 8.7 -15.9 -6.0 -0.9
Time charter equivalent earnings 200.1 235.9 244.2 225.7 199.1
Charter hire -46.0 -44.3 -50.4 -53.1 -54.1
Operating expenses -43.5 -45.2 -41.5 -44.1 -47.5
Gross profit (Net earnings from shipping activities)
110.6 146.4 152.3 128.5 97.5
Profit from sale of vessels 0.0 52.0 10.8 20.0 0.0
Administrative expenses -19.7 -19.8 -22.6 -27.8 -20.1
Other operating income 3.6 3.1 4.3 3.5 2.4
Share of results of jointly controlled entities -1.8 7.4 6.1 15.4 0.9
EBITDA 92.7 189.1 150.9 139.6 80.7
Depreciation and impairment losses -30.7 -31.1 -31.3 -32.9 -31.8
Operating profit 62.0 158.0 119.6 106.7 48.9
Financial items -9.9 -11.6 -28.3 -36.4 -9.7
Profit before tax 52.1 146.4 91.3 70.3 39.2
Tax 0.1 -1.0 -0.5 2.7 0.4
Net profit 52.2 145.4 90.8 73.0 39.6
Earnings per share, EPS
Earnings per share, EPS (USD) 0.8 2.1 1.3 1.1 0.6
Assets
Million USD 31 March 2009 31 March
2008 31 Dec. 2008
NON-CURRENT ASSETS
Intangible assets
Goodwill 89.2 89.2 89.2
Other intangible assets 2.4 5.6 2.4
Total intangible assets 91.6 94.8 91.6
Tangible fixed assets
Land and buildings 3.6 4.1 3.7
Vessels and capitalized dry-docking 2,421.4 2,171.5 2,325.9
Prepayments on vessels 273.0 331.0 272.7
Other plant and operating equipment 9.9 6.7 9.2
Total tangible fixed assets 2,707.9 2,513.3 2,611.5
Financial assets
Investment in jointly controlled entities 134.6 119.0 130.5
Loans to jointly controlled entities 40.9 113.8 42.2
Other investments 5.4 12.7 6.4
Other financial assets 27.8 46.0 31.0
Total financial assets 208.7 291.5 210.1
TOTAL NON-CURRENT ASSETS 3,008.2 2,899.6 2,913.2
CURRENT ASSETS
Bunkers 19.0 22.8 18.3
Freight receivables, etc. 73.5 71.9 120.2
Other receivables 61.1 71.6 72.0
Other financial assets 10.7 0.0 10.7
Prepayments 15.4 13.6 14.7
Cash and cash equivalents 98.7 76.8 168.3
TOTAL CURRENT ASSETS 278.4 256.7 404.2
TOTAL ASSETS 3,286.6 3,156.3 3,317.4
Equity and liabilities
Million USD 31 March 2009 31 March
2008 31 Dec. 2008
EQUITY
Common shares 61.1 61.1 61.1
Treasury shares -18.1 -18.1 -18.1
Revaluation reserves -1.1 6.2 -0.1
Retained profit 1,252.4 1.007.2 1.209.5
Proposed dividends 55.1 64.5 55.1
Hedging reserves -12.7 4.4 -32.7
Translation reserves 4.0 4.3 4.1
TOTAL EQUITY 1,340.7 1,129.6 1,278.9
LIABILITIES
Non-current liabilities
Deferred tax liability 55.0 55.6 55.1
Mortgage debt and bank loans 1,501.7 1.005.3 1.505.8
Acquired liabilities related to options on vessels 3.4 31.6 10.7
Acquired time charter contracts 2.1 11.7 3.9
TOTAL NON-CURRENT LIABILITIES 1,562.2 1,104.2 1,575.5
Current liabilities
Mortgage debt and bank loans 212.4 777.4 212.4
Other financial liabilities 0.0 10.0 0.0
Trade payables 28.8 42.3 49.0
Current tax liabilities 7.9 13.2 9.7
Other liabilities 122.0 63.8 179.8
Acquired liabilities related to options on vessels 1.7 0.0 0.0
Acquired time charter contracts 9.7 14.3 11.2
Deferred income 1.2 1.5 0.9
TOTAL CURRENT LIABILITIES 383.7 922.5 463.0
TOTAL LIABILITIES 1,945.9 2,026.7 2,038.5
TOTAL EQUITY AND LIABILITIES 3,286.6 3,156.3 3,317.4
Equity 1 January - 31 March 2009
Million
USD Common Treasury Retained Proposed Revaluation Hedging Translation Total
shares shares profit dividends reserves reserves reserves
Equity at 1 January 2009 61.1 -18.1 1,209.5 55.1 -0.1 -32.7 4.1 1,278.9
Changes in equity Q1 2009:
Purchase treasury shares, cost - - - - - - - 0.0
Disposal treasury shares, cost - - - - - - - 0.0
Dividends paid - - - - - - - 0.0
Dividends paid on treasury shares - - - - - - - 0.0
Exchange rate adjustment on dividends paid - - - - - - - 0.0
Share-based compensation - - 3.3 - - - - 3.3
Comprehensive income for the period - - 39.6 - -1.0 20.0 -0.1 58.5
Total changes in equity Q1 2009 0.0 0.0 42.9 0.0 -1.0 20.0 -0.1 61.8
Equity at 31 March 2009 61.1 -18.1 1,252.4 55.1 -1.1 -12.7 4.0 1,340.7
Equity 1 January - 31 March 2008
Million
USD Common Treasury Retained Proposed Revaluation Hedging Translation Total
shares shares profit dividends reserves reserves reserves
Equity at 1 January 2008 61.1 -18.1 953.6 64.5 7.3 8.7 4.1 1,081.2
Changes in equity Q1 2008:
Share-based compensation - - 1.4 - - - - 1.4
Comprehensive income for the period - - 52.2 - -1.1 -4.3 0.2 47.0
Total changes in equity Q1 2008 0.0 0.0 53.6 0.0 -1.1 -4.3 0.2 48.4
Equity at 31 March 2008 61.1 -18.1 1,007.2 64.5 6.2 4.4 4.3 1,129.6
Statement of cash flows
Million USD Q1 2009 Q1 2008 2008
Cash flow from operating activities
Operating profit 48.9 62.0 446.3
Adjustments:
Reversal of profit from sale of vessels 0.0 0.0 -82.8
Reversal of depreciation and impairment losses 31.8 30.7 126.1
Reversal of share of results of jointly controlled entities -0.9 1.8 -27.1
Reversal of other non-cash movements -0.3 -4.6 -7.8
Dividends received 0.0 0.2 1.3
Dividends received from joint controlled entities 0.7 1.3 3.9
Interest received and exchange rate gains 1.8 9.7 13.4
Interest paid -17.6 -23.9 -84.3
Income taxes paid -1.7 -1.3 -4.2
Change in inventories, accounts receivables and payables -1.5 -12.2 -0.1
Net cash inflow/(outflow) from operating activities 61.2 63.7 384.7
Cash flow from investing activities
Investment in tangible fixed assets -129.5 -102.9 -377.8
Investment in equity interests and securities 0.0 -118.4 -133.9
Loans to jointly controlled entities 1.3 0.0 69.6
Payment of liability related to options on vessels 1.5 0.0 -6.7
Acquisition of enterprises and activities 0.0 0.0 0.0
Sale of equity interests and securities 0.0 0.0 17.4
Sale of non-current assets 0.0 0.1 169.0
Net cash inflow/(outflow) from investing activities -126.7 -221.2 -262.4
Cash flow from financing activities
Borrowing, mortgage debt and other financial liabilities 18.0 137.6 1.020.7
Repayment/redemption, mortgage debt -22.1 -8.3 -955.9
Dividends paid 0.0 0.0 -123.8
Purchase/disposals of treasury shares 0.0 0.0 0.0
Cash inflow/(outflow) from financing activities -4.1 129.3 -59.0
Increase/(decrease) in cash and cash equivalents -69.6 -28.2 63.3
Cash and cash equivalents, beginning balance 168.3 105.0 105.0
Cash and cash equivalents, ending balance 98.7 76.8 168.3
Quarterly statement of cash flows
Million USD Q1 08 Q2 08 Q3 08 Q4 08 Q1 09
Cash flow from operating activities
Operating profit 62.0 158.0 119.7 106.6 48.9
Adjustments:
Reversal of profit from sale of vessels
Reversal of depreciation and impairment losses 0.0 -52.0 -10.8 -20.0 0.0
Reversal of share of results of jointly controlled
entities 30.7 31.1 31.3 33.0 31.8
Reversal of other non-cash movements 1.8 -7.4 -6.1 -15.4 -0.9
Dividends received -4.6 -2.4 -0.8 0.0 -0.3
Dividends received from joint controlled entities 0.2 1.2 0.0 -0.1 0.0
Interest received and exchange rate gains 1.3 0.2 1.5 0.9 0.7
Interest paid 9.7 2.8 3.7 -2.8 1.8
Income taxes paid -23.9 -18.4 -20.2 -21.8 -17.6
Change in inventories, accounts receivables and payables -1.3 -0.3 0.4 -3.0 -1.7
Net cash inflow/(outflow) from operating activities -12.2 -23.6 -7.5 43.2 -1.5
Cash flow from operating activities 63.7 89.2 111.2 120.6 61.2
Cash flow from investing activities
Investment in tangible fixed assets -102.9 -78.2 -112.6 -84.1 -129.5
Investment in equity interests and securities -118.4 -15.1 0.0 -0.4 0.0
Loans to jointly controlled entities 0.0 0.0 64.0 5.6 1.3
Payment of liability related to options on vessels 0.0 0.0 -11.0 4.3 1.5
Acquisition of enterprises and activities 0.0 0.0 0.0 0.0 0.0
Sale of equity interests and securities 0.0 17.4 0.0 0.0 0.0
Sale of non-current assets 0.1 68.5 63.0 37.4 0.0
Net cash inflow/(outflow) from investing activities -221.2 -7.4 3.4 -37.2 -126.7
Cash flow from financing activities
Borrowing, mortgage debt and other financial
liabilities 137.6 869.8 0.0 13.3 18.0
Repayment/redemption, mortgage debt -8.3 -884.8 -59.5 -3.3 -22.1
Dividends paid 0.0 -65.3 0.0 -58.5 0.0
Purchase/disposals of treasury shares 0.0 0.0 0.0 0.0 0.0
Cash inflow/(outflow) from financing activities 129.3 -80.3 -59.5 -48.5 -4.1
Increase/(decrease) in cash and cash equivalents -28.2 1.5 55.1 -34.9 -69.6
Cash and cash equivalents, beginning balance 105.0 76.8 78.3 133.4 168.3
Cash and cash equivalents, ending balance 76.8 78.3 133.4 168.3 98.7
