“The result for the first half of 2009 reflects that freight rates were at a
historic low due to lower than expected global oil consumption. Our strategic
view of the product tanker market is unchanged, and although the number of
newbuildings is a challenge short-term, we are positive on the future prospects
of the segment,” says CEO Mikael Skov.
• Profit before tax for the first six months of 2009 was USD 7 million which is
lower than expected.
• A loss before tax of USD 33 million was posted for the second quarter of
2009. The result is negatively affected by low freight rates and negative
mark-to-market non-cash adjustments of USD 25 million, hereof USD 20 million on
financial instruments primarily due to writedowns on options related to vessel
values.
• Product tanker rates were significantly lower than expected in the second
quarter. This is primarily due to lower demand for transport of oil products as
global consumption of oil was lower than anticipated. Moreover, a historically
large number of newbuildings have been delivered, and fuel costs have increased
substantially since the beginning of the year.
• Bulk rates were higher than expected in the second quarter. This is primarily
due to growing Chinese imports of iron ore and coal.
• TORM's efficiency improvement programme had a favourable effect on
performance in the second quarter as vessel operating costs per day dropped by
an average of approximately 10% year-on-year across the fleet. The efficiency
improvement programme - Greater Efficiency Power - will, as planned, produce
annual cost savings of USD 40-60 million from 2010.
• Based on broker valuations, the market value of TORM's fleet was below book
value at 30 June 2009. However, as the market for product tanker vessels is
currently illiquid, broker valuations are uncertain. The Company believes that
the value decrease is not of a lasting nature and that future earnings and cash
flow from the fleet still substantiate the book value.
• Equity amounted to USD 1,270 million at 30 June 2009, equivalent to USD 18.3
per share (DKK 96.7 per share), excluding treasury shares, which represents an
equity ratio of 39%.
• Net interest-bearing debt totalled USD 1,670 million at 30 June 2009. More
than 65% of the debt is due after 2012.
• TORM's unutilised loan facilities and cash totalled approximately USD 400
million at the end of the second quarter.
• At 30 June 2009, TORM had covered 45% of the remaining operating days in the
Tanker Division at USD 19,918 per day and 69% of the remaining operating days
in the Bulk Division at USD 17,376 per day.
• TORM sold three bulk vessels in the second quarter at a total profit of USD
27 million, of which the profit of USD 19.5 million on two of the vessels will
be recognised in the financial statements for the third quarter. In addition, a
purchase option for a modern bulk carrier was exercised, and the vessel was
resold at a profit of USD 5 million, which was recognised in the second
quarter.
• TORM maintains its forecast for a profit before tax of around break-even for
2009 as stated in announcement no. 11 dated 12 August 2009.
Telecon-
ference A teleconference and webcast (www.torm.com) will take place today, 20
August 2009, at 16:00 Copenhagen time (CET). To participate, please call 10
minutes before the conference 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
Tuborg Havnevej 18
DK-2900 Hellerup, Denmark
Telephone: +45 3917 9200
Mikael Skov, CEO
Roland M. Andersen, CFO
Key figures
Million USD Q2 2009 Q2 2008 Q1-Q2 2009 Q1-Q2 2008 2008
Income statement
Net revenue 193.6 286.6 452.4 541.6 1,183.6
Time charter equivalent earnings (TCE) 138.2 235.9 337.3 436.0 905.9
Gross profit 38.9 146.4 136.4 257.0 537.8
EBITDA 30.6 189.1 111.3 281.8 572.3
Operating profit -2.9 158.0 46.0 220.0 446.3
Profit before tax -32.5 146.4 6.7 198.5 360.1
Net profit -33.6 145.4 6.0 197.6 361.4
Balance sheet
Total assets 3,255.7 3,211.1 3,255.7 3,211.1 3,317.4
Equity 1,269.8 1,210.6 1,269.8 1,210.6 1,278.9
Total liabilities 1,985.9 2,000.5 1,985.9 2,000.5 2,038.5
Invested capital 2,932.6 2,888.2 2,932.6 2,888.2 2,822.4
Net interest bearing debt 1,669.9 1,689.3 1,669.9 1,689.3 1,549.9
Cash flow
From operating activities 11.8 89.2 73.0 152.9 384.7
From investing activities -17.6 -7.4 -144.3 -228.6 -262.4
Thereof investment in tangible fixed assets -44.7 -78.2 -174.2 -181.1 -377.8
From financing activities 19.7 -80.3 15.6 49.0 -59.0
Net cash flow 13.9 1.5 -55.7 -26.7 63.3
Key financial figures
Margins:
TCE 71.4% 82.3% 74.6% 80.5% 76.5%
Gross profit 20.1% 51.1% 30.2% 47.5% 45.4%
EBITDA 15.8% 66.0% 24.6% 52.0% 48.3%
Operating profit -1.5% 55.1% 10.2% 40.6% 37.7%
Return on Equity (RoE) (p.a.)*) -8.0% 36.4% -0.3% 30.0% 30.6%
Return on Invested Capital (RoIC) (p.a.)**) -1.7% 16.7% 1.9% 14.1% 16.4%
Equity ratio 39.0% 37.7% 39.0% 37.7% 38.6%
Exchange rate USD/DKK, end of period 5.27 4.73 5.27 4.73 5.28
Exchange rate USD/DKK, average 5.60 4.78 5.48 4.87 5.09
Share related key figures
Earnings per share, EPS USD -0.5 2.1 0.1 2.9 5.2
Diluted earnings per share, DEPS USD -0.5 2.1 0.1 2.9 5.2
Cash flow per share, CFPS USD 0.2 1.3 1.1 2.2 5.6
Share price, end of period
(per share of DKK 5 each) DKK 54.0 167.1 54.0 167.1 55.5
Number of shares, end of period Mill. 72.8 72.8 72.8 72.8 72.8
Number of shares (excl. treasury shares),
average Mill. 69.2 69.2 69.2 69.2 69.2
*) The gain from sale of vessels and the compensation for early returns of four
Panamax bulk carriers and the mark-to-market adjustments of financial
instruments is not annualized when calculating the Return on Equity.
**) The gain from sale of vessels and the compensation for early returns of
four Panamax bulk carriers is not annualized when calculating the Return on
Invested Capital.
Profit by division
Million USD Q2 2009 Q1-Q2 2009
Tanker Division Bulk Division Not Allocated Total Tanker Division Bulk
Division Not Allocated Total
Revenue 172.9 20.7 0.0 193.6 383.0 69.4 0.0 452.4
Port expenses, bunkers and
commissions -48.0 -0.1 0.0 -48.1 -104.4 -2.5 0.0 -106.9
Freight and bunkers derivatives -7.3 0.0 0.0 -7.3 -8.2 0.0 0.0 -8.2
Time charter equivalent earnings 117.6 20.6 0.0 138.2 270.4 66.9 0.0 337.3
Charter hire -39.8 -15.3 0.0 -55.1 -79.5 -29.7 0.0 -109.2
Operating expenses -41.0 -3.2 0.0 -44.2 -84.4 -7.3 0.0 -91.7
Gross Profit 36.8 2.1 0.0 38.9 106.5 29.9 0.0 136.4
Profit from sale of vessels 0.0 12.5 0.0 12.5 0.0 12.5 0.0 12.5
Administrative expenses -20.7 -1.8 0.0 -22.5 -38.7 -3.9 0.0 -42.6
Other Operating income 2.4 0.0 0.0 2.4 4.8 0.0 0.0 4.8
Share of results of jointly controlled
entities* 0.5 0.0 -1.2 -0.7 1.7 0.0 -1.5 0.2
EBITDA 19.0 12.8 -1.2 30.6 74.3 38.5 -1.5 111.3
Depreciation and impairment losses -31.1 -2.4 0.0 -33.5 -60.9 -4.4 0.0 -65.3
Operating profit -12.1 10.4 -1.2 -2.9 13.4 34.1 -1.5 46.0
Financial items, net - - -29.6 -29.6 - - -39.3 -39.3
Profit/(Loss) before tax - - -30.8 -32.5 - - -40.8 6.7
Tax - - -1.1 -1.1 - - -0.7 -0.7
Net profit - - -31.9 -33.6 - - -41.5 6.0
*) 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's EBITDA for the second quarter was USD 19
million, against USD 55 million in the first quarter of 2009.
After a sluggish first quarter during which much of the winter market failed to
materialise, the demand for tonnage dropped further in the second quarter, and
the freight rates remained at a very low level throughout the quarter.
The tanker market was affected by the following major factors in the second
quarter of 2009:
Positive impact:
• Arbitrage shipping of gasoline from Europe to the Middle East and of middle-
distillates from the Far East to Europe.
• Use of LR2 and LR1 vessels as floating storage facilities and slow steaming
reduced the supply of available tonnage.
• Higher, but still low demand for naphtha in the Far East resulted in
increased demand for LR1 and LR2 vessels.
Negative impact:
• The fall in global demand for oil.
• Delivery of a large number of newbuildings.
• Substantially higher fuel costs.
• The number of port days has dropped by approximately 10% in 2009 as compared
with 2008 as a result of significantly lower volumes of refined oil products to
be transported.
• A fall in the number of return voyages from the US to Europe reduced MR
vessel earnings.
The Tanker Division achieved freight rates in the second quarter of 2009 which,
relative to the second quarter of 2008, were 51% lower for the LR2 segment, 32%
lower for the LR1 segment, 34% lower for the MR segment and 17% lower for the
SR segment.
Operating costs per ship day in the Tanker Division decreased by an average of
approximately 8% in the quarter as compared with the second quarter of 2008 as
a result of the efficiency improvement programme.
Tanker Division Q2 08 Q3 08 Q4 08 Q1 09 Q2 09
Change
Q2 08
- Q2 09 12 month avg.
LR2 (Aframax, 90-110,000 DWT)
Available earning days 926 970 1,104 1,167 1,179 27%
TCE per earning day from the LR2 Pool 32,327 45,267 37,009 24,192 17,145 -47%
TCE per earning day1) 32,084 48,421 31,862 21,977 15,785 -51% 28,598
Operating days 849 963 1,069 1,080 1,092 29%
Operating expenses per operating day2) 8,359 7,319 8,564 7,507 7,556 -10% 7,745
LR1 (Panamax 75-85,000 DWT)
Available earning days 1,764 1,804 2,009 1,864 1,756 0%
TCE per earning day from the LR1 Pool 28,370 34,700 35,140 22,503 15,577 -45%
TCE per earning day1) 27.036 23.648 23.217 21,755 18,491 -32% 21,838
Operating days 819 828 828 810 819 0%
Operating expenses per operating day2) 8,262 7,798 7,478 7,852 7,142 -14% 7,567
MR (45,000 DWT)
Available earning days 2,576 2,668 2,796 3,174 3,344 30%
TCE per earning day from the MR Pool 25,615 29,102 22,282 20.201 14,712 -43%
TCE per earning day1) 23,158 26,458 22,298 19,802 15,363 -34% 20,628
Operating days 2,441 2,484 2,400 2,497 2,548 4%
Operating expenses per operating day2) 8,172 7,609 7,653 8,227 7,458 -9% 7,731
SR (35,000 DWT)
Available earning days 1,092 1,100 1,102 1,145 1,135 4%
TCE per earning day1) 21,036 20,078 22,338 20,963 17,483 -17% 20,203
Operating days 910 920 920 969 1,001 10%
Operating expenses per operating day2) 6,644 6,193 6,633 7,662 6,600 -1% 6,780
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 EBITDA for the Bulk Division for the second quarter of 2009 was
USD 13 million. USD 13 million of this was attributable to the sale of TORM
Baltic and the exercise of a purchase option followed by the subsequent resale
of the modern Panamax bulk carrier TORM Skagen. Moreover, TORM Marta and TORM
Tina were sold, but were not delivered until early in the third quarter,
wherefore the profit will be recognised in the third quarter.
Bulk rates doubled in the second quarter, although from a very low level. The
rates were better than expected, primarily as a result of growing Chinese steel
production and imports of iron ore and coal. Chinese iron ore imports are
estimated to have increased by approximately 30% in 2009 compared with 2008.
The Bulk Division's earnings per day were 73% lower in the second quarter of
2009 than in the same quarter of 2008.
Operating costs per ship day in the Bulk Division fell by an average of
approximately 24% in the quarter as compared with the second quarter of 2008 as
a result of the efficiency improvement programme.
Bulk Division Q2 08 Q3 08 Q4 08 Q1 09 Q2 09
Change
Q2 08
- Q2 09 12 month avg.
Panamax (60-80,000 DWT)
Available earning days 1,367 1,421 1,466 1,458 1,496 9%
TCE per earning day1) 50,568 49,888 38,958 13,929 13,756 -73% 28,915
Operating days 585 552 600 622 636 9%
Operating expenses per operating day2) 6,723 6,261 5,352 6,798 5,106 -24% 5,868
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 are losses on investments in
joint ventures of USD 1.2 million, financial expenses of USD 29.6 million and
tax of USD 1.1 million. FR8 contributed a loss of USD 1.3 million in the second
quarter.
Fleet development At the end of the second quarter 2009, TORM's fleet of owned
vessels comprised 61 tankers and six bulk carriers. Furthermore TORM has
chartered-in 24 tankers and 10 bulk carriers and in addition has 40 tankers in
either pools or under commercial management. In the second quarter, TORM signed
agreements to sell three bulk carriers, one of which was delivered in the
second quarter. The remaining two bulk carriers were delivered to the buyers in
the third quarter.
Owned vessels
31. March
2009 Addition Disposal 30. June
2009
LR2 / Aframax 12.5 - - 12.5
LR1 / Panamax 7.5 - - 7.5
MR 30.0 - - 30.0
SR 11.0 - - 11.0
Tankers 61.0 - - 61.0
Panamax 7.0 - 1.0 6.0
Bulkers 7.0 - 1.0 6.0
Total 68.0 - 1.0 67.0
Planned No vessels were contracted in the second quarter of 2009.
fleet changes
Results
Second quarter 2009 The second quarter of 2009 showed a gross profit of USD 39
million, against USD 146 million for the corresponding quarter of 2008. Profit
before depreciation (EBITDA) for the period was USD 31 million, against USD 189
million for the second quarter of 2008. The decline in gross profit and EBITDA
was primarily due to substantially lower freight rates in both the Tanker
Division and the Bulk Division.
In the second quarter of 2009, depreciation amounted to USD 34 million.
An operating loss of USD 3 million was posted in the second quarter of 2009,
against an operating profit of USD 158 million in the same quarter of 2008. The
Tanker and Bulk Divisions contributed a loss of USD 12 million and a profit of
USD 10 million respectively, whereas a loss of USD 1 million is unallocated.
There was a total negative effect from mark-to-market non-cash adjustments of
USD 25 million in the second quarter with USD 20 million on financial
instruments and USD 5 million on FFA/bunker derivatives. The mark-to-market
adjustments on financial instruments were primarily due to a writedown of USD
23 million on options related to vessel values taken over in connection with
the acquisition of OMI.
In the second quarter of 2009, financials amounted to an expense of USD 30
million, against an expense of USD 12 million in the same quarter of 2008. The
difference was primarily due to the above-mentioned mark-to-market non-cash
adjustments.
A loss after tax of USD 34 million was posted in the second quarter of 2009,
including a profit of USD 13 million on the sale of vessels, against a profit
of USD 145 million in the second quarter of 2008, where a profit of USD 52
million was recognised on the sale of vessels.
Assets Total assets fell from USD 3,287 million to USD 3,256 million in the
second quarter of 2009. TORM receives quarterly valuations on its fleet value
from three internationally acknowledged shipbrokers and calculates a value in
use derived from discounted cash flow valuations. Based on the broker
valuations, the market value of TORM's fleet was below book value at 30 June
2009. However, as the market for product tanker vessels is currently illiquid,
broker valuations are uncertain.
Liabilities During the second quarter of 2009, the Company's net interest
bearing debt rose from USD 1,615 million to USD 1,670 million. The item mainly
comprises net borrowing in connection with the delivery of vessels, the cash
effect of the distribution of dividend and positive cash earnings of the
period. More than 65% of the debt is due after 2012. TORM's unutilised loan
facilities and cash totalled approximately USD 400 million at the end of the
second quarter.
Total equity In the second quarter of 2009, equity fell from USD 1,341 million
to USD 1,270 million, which is the result of earnings during the period and
dividends paid. Equity as a percentage of total assets dropped from 40.8% at 31
March 2009 to 39.0% at 30 June 2009.
At 30 June 2009, TORM held 3,556,364 treasury shares, corresponding to 4.9% of
the Company's share capital, which is unchanged from 31 March 2009.
Subsequent events In the second quarter, TORM signed agreements to sell TORM
Marta and TORM Tina for delivery in the third quarter. The sale of the two
vessels will produce a profit of USD 19.5 million in the third quarter.
Outlook TORM maintains its forecast for profit before tax of around break-even
for 2009 as stated in announcement no. 11 dated 12 August 2009.
Sensitivity At 30 June 2009, approximately 69% of the earning days of the
Company's Panamax bulk carriers were covered for the remainder of the year. For
the Tanker Division, approximately 45% of the remaining operating days were
covered for the rest of the year.
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 54 as of 30 June 2009, against DKK 43.5 at
the beginning of the second quarter - equivalent to an increase of DKK 10.5
(24%).
In the second quarter, the Company distributed a dividend of DKK 4.0 per share.
The total return to shareholders for the second quarter of 2009 was thus DKK
14.5 per share (calculated excluding reinvestment), corresponding to a total
return of 33%.
Accounting policies
This interim report for the first half of 2009 has been prepared in accordance
with IAS 34 “Interim financial reporting” as adopted by the EU and additional
Danish regulations governing the presentation of interim reports by listed
companies.
Except for the instances mentioned below, the interim report has been prepared
using the accounting policies as for the Annual Report for 2008. The accounting
policies are described in more detail in the Annual Report 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”, minor 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 half of 2009. The presentation 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 half of 2009 is unaudited, in line with the
normal practice.
Information
Teleconference
TORM will host a telephone conference for financial analysts and investors on
20 August 2009 at 16:00 Copenhagen time (CET), reviewing the interim report for
the first half 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 third quarter of 2009 will be released on 18
November 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 - 30 June 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, 20 August 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 140 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. TORM's shares are listed on the OMX Nordic
Exchange Copenhagen (symbol: TRMD). For further information, please visit
www.torm.com.
Income statement
Million USD Q2 2009 Q2 2008 Q1-Q2 2009 Q1-Q2 2008 2008
Revenue 193.6 286.6 452.4 541.6 1,183.6
Port expenses, bunkers and commissions -48.1 -59.4 -106.9 -113.9 -264.1
Freight and bunkers derivatives -7.3 8.7 -8.2 8.3 -13.6
Time charter equivalent earnings 138.2 235.9 337.3 436.0 905.9
Charter hire -55.1 -44.3 -109.2 -90.3 -193.8
Operating expenses -44.2 -45.2 -91.7 -88.7 -174.3
Gross profit (Net earnings from shipping activities)
38.9 146.4 136.4 257.0 537.8
Profit from sale of vessels 12.5 52.0 12.5 52.0 82.8
Administrative expenses -22.5 -19.8 -42.6 -39.5 -89.9
Other operating income 2.4 3.1 4.8 6.7 14.5
Share of results of jointly controlled entities -0.7 7.4 0.2 5.6 27.1
EBITDA 30.6 189.1 111.3 281.8 572.3
Depreciation and impairment losses -33.5 -31.1 -65.3 -61.8 -126.0
Operating profit -2.9 158.0 46.0 220.0 446.3
Financial items -29.6 -11.6 -39.3 -21.5 -86.2
Profit before tax -32.5 146.4 6.7 198.5 360.1
Tax -1.1 -1.0 -0.7 -0.9 1.3
Net profit -33.6 145.4 6.0 197.6 361.4
Earnings per share, EPS
Earnings per share, EPS (USD) -0.5 2.1 0.1 2.9 5.2
Earnings per share, EPS (DKK)*) -2.7 9.9 0.5 13.9 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 Q2 2009 Q2 2008 Q1-Q2 2009 Q1-Q2 2008 2008
Net profit for the period -33.6 145.4 6.0 197.6 361.4
Other comprehensive income:
Exchange rate adjustment arising on translation
of entities using a measurement currency different
from USD 0.1 -0.1 0.0 0.1 0.0
Fair value adjustment on hedge instruments 8.1 -0.2 24.5 -2.6 -56.5
Value adjustment on hedge instruments transferred
to income statement -1.0 -0.1 3.8 -2.0 15.1
Value adjustment on hedge instruments transferred
to assets 0.0 0.0 -1.2 0.0 0.0
Fair value adjustment on available for sale investments 1.7 -1.0 0.7 -2.1 -4.8
Transfer to income statement on sale of available for sale
investments 0,0 0,0 0,0 0,0 -2,6
Other comprehensive income after tax 8.9 -1.4 27.8 -6.6 -48.8
Total comprehensive income -24.7 144.0 33.8 191.0 312.6
Income statement by quarter
Million USD Q2 08 Q3 08 Q4 08 Q1 09 Q2 09
Revenue 286.6 336.6 305.4 258.8 193.6
Port expenses, bunkers and commissions -59.4 -76.5 -73.7 -58.8 -48.1
Freight and bunkers derivatives 8.7 -15.9 -6.0 -0.9 -7.3
Time charter equivalent earnings 235.9 244.2 225.7 199.1 138.2
Charter hire -44.3 -50.4 -53.1 -54.1 -55.1
Operating expenses -45.2 -41.5 -44.1 -47.5 -44.2
Gross profit (Net earnings from shipping activities)
146.4 152.3 128.5 97.5 38.9
Profit from sale of vessels 52.0 10.8 20.0 0.0 12.5
Administrative expenses -19.8 -22.6 -27.8 -20.1 -22.5
Other operating income 3.1 4.3 3.5 2.4 2.4
Share of results of jointly controlled entities 7.4 6.1 15.4 0.9 -0.7
EBITDA 189.1 150.9 139.6 80.7 30.6
Depreciation and impairment losses -31.1 -31.3 -32.9 -31.8 -33.5
Operating profit 158.0 119.6 106.7 48.9 -2.9
Financial items -11.6 -28.3 -36.4 -9.7 -29.6
Profit before tax 146.4 91.3 70.3 39.2 -32.5
Tax -1.0 -0.5 2.7 0.4 -1.1
Net profit 145.4 90.8 73.0 39.6 -33.6
Earnings per share, EPS
Earnings per share, EPS (USD) 2.1 1.3 1.1 0.6 -0.5
Assets
Million USD 30 June 2009 30 June
2008 31 Dec. 2008
NON-CURRENT ASSETS
Intangible assets
Goodwill 89.2 89.2 89.2
Other intangible assets 2.4 3.9 2.4
Total intangible assets 91.6 93.1 91.6
Tangible fixed assets
Land and buildings 3.7 3.9 3.7
Vessels and capitalized dry-docking 2,354.4 2,168.7 2,325.9
Prepayments on vessels 306.8 313.6 272.7
Other plant and operating equipment 11.4 6.5 9.2
Total tangible fixed assets 2,676.3 2,492.7 2,611.5
Financial assets
Investment in jointly controlled entities 131.8 109.0 130.5
Loans to jointly controlled entities 39.7 111.8 42.2
Other investments 7.1 11.7 6.4
Other financial assets 4.3 46.0 31.0
Total financial assets 182.9 278.5 210.1
TOTAL NON-CURRENT ASSETS 2,950.8 2,864.3 2,913.2
CURRENT ASSETS
Bunkers 20.7 26.1 18.3
Freight receivables, etc. 57.0 101.9 120.2
Other receivables 58.3 79.9 72.0
Other financial assets 11.5 0.0 10.7
Prepayments 15.1 7.9 14.7
Cash and cash equivalents 112.6 78.3 168.3
275.2 294.1 404.2
Assets held for sale 29.7 52.7 0.0
TOTAL CURRENT ASSETS 304.9 346.8 404.2
TOTAL ASSETS 3,255.7 3,211.1 3,317.4
Equity and liabilities
Million USD 30 June 2009 30 June
2008 31 Dec. 2008
EQUITY
Common shares 61.1 61.1 61.1
Treasury shares -18.1 -18.1 -18.1
Revaluation reserves 0.6 5.2 -0.1
Retained profit 1,227.7 1,154.1 1,209.5
Proposed dividends 0.0 0.0 55.1
Hedging reserves -5.6 4.1 -32.7
Translation reserves 4.1 4.2 4.1
TOTAL EQUITY 1,269.8 1,210.6 1,278.9
LIABILITIES
Non-current liabilities
Deferred tax liability 55.2 55.4 55.1
Mortgage debt and bank loans 1,644.0 1,572.4 1,505.8
Acquired liabilities related to options on vessels 2.8 31.6 10.7
Acquired time charter contracts 0.3 8.8 3.9
TOTAL NON-CURRENT LIABILITIES 1,702.3 1,668.2 1,575.5
Current liabilities
Mortgage debt and bank loans 138.5 195.2 212.4
Trade payables 25.6 48.6 49.0
Current tax liabilities 8.7 14.1 9.7
Other liabilities 100.0 59.4 179.8
Acquired liabilities related to options on vessels 1.8 0.0 0.0
Acquired time charter contracts 8.7 12.7 11.2
Deferred income 0.3 2.3 0.9
TOTAL CURRENT LIABILITIES 283.6 332.3 463.0
TOTAL LIABILITIES 1,985.9 2,000.5 2,038.5
TOTAL EQUITY AND LIABILITIES 3,255.7 3,211.1 3,317.4
Equity 1 January - 30 June 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-Q2 2009:
Purchase treasury shares, cost - - - - - - - 0.0
Disposal treasury shares, cost - - - - - - - 0.0
Dividends paid - - - -51.2 - - - -51.2
Dividends paid on treasury shares - - 2.5 - - - - 2.5
Exchange rate adjustment on dividends paid - - 3.9 -3.9 - - - 0.0
Share-based compensation - - 5.8 - - - - 5.8
Comprehensive income for the period - - 6.0 - 0.7 27.1 0.0 33.8
Total changes in equity Q1-Q2 2009 0.0 0.0 18.2 -55.1 0.7 27.1 0.0 -9.1
Equity at 30 June 2009 61.1 -18.1 1,227.7 0.0 0.6 -5.6 4.1 1,269.8
Equity 1 January - 30 June 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-Q2 2008:
Purchase treasury shares, cost - - - - - - - 0.0
Disposal treasury shares, cost - - - - - - - 0.0
Dividends paid - - - -68.6 - - - -68.6
Dividends paid on treasury shares - - 3.3 - - - - 3.3
Exchange rate adjustment on dividends paid - - -4.1 4.1 - - - 0.0
Share-based compensation - - 3.7 - - - - 3.7
Comprehensive income for the period - - 197.6 - -2.1 -4.6 0.1 191.0
Total changes in equity Q1-Q2 2008 0.0 0.0 200.5 -64.5 -2.1 -4.6 0.1 129.4
Equity at 30 June 2008 61.1 -18.1 1,154.1 0.0 5.2 4.1 4.2 1,210.6
Statement of cash flows
Million USD Q2 2009 Q2 2008 Q1-Q2 2009 Q1-Q2 2008 2008
Cash flow from operating activities
Operating profit -2.9 158.0 46.0 220.0 446.3
Adjustments:
Reversal of profit from sale of vessels -12.5 -52.0 -12.5 -52.0 -82.8
Reversal of depreciation and impairment losses 33.5 31.1 65.3 61.8 126.1
Reversal of share of results of jointly controlled
entities 0.7 -7.4 -0.2 -5.6 -27.1
Reversal of other non-cash movements 5.6 -2.4 5.3 -7.0 -7.8
Dividends received 0.0 1.2 0.0 1.4 1.3
Dividends received from joint controlled entities 2.1 0.2 2.8 1.5 3.9
Interest received and exchange rate gains 2.4 2.8 4.2 12.5 13.4
Interest paid -12.1 -18.4 -29.7 -42.3 -84.3
Income taxes paid -0.1 -0.3 -1.8 -1.6 -4.2
Change in inventories, accounts receivables and
payables -4.9 -23.6 -6.4 -35.8 -0.1
Net cash inflow/(outflow) from operating activities 11.8 89.2 73.0 152.9 384.7
Cash flow from investing activities
Investment in tangible fixed assets -44.7 -78.2 -174.2 -181.1 -377.8
Investment in equity interests and securities 0.0 -15.1 0.0 -133.5 -133.9
Loans to jointly controlled entities 1.1 0.0 2.4 0.0 69.6
Payment of liability related to options on vessels 0.0 0.0 1.5 0.0 -6.7
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 17.4 17.4
Sale of non-current assets 26.0 68.5 26.0 68.6 169.0
Net cash inflow/(outflow) from investing
activities -17.6 -7.4 -144.3 -228.6 -262.4
Cash flow from financing activities
Borrowing, mortgage debt and other financial
liabilities 245.4 869.8 263.4 1,007.4 1,020.7
Repayment/redemption, mortgage debt -177.0 -884.8 -199.1 -893.1 -955.9
Dividends paid -48.7 -65.3 -48.7 -65.3 -123.8
Purchase/disposals of treasury shares 0.0 0.0 0.0 0.0 0.0
Cash inflow/(outflow) from financing activities 19.7 -80.3 15.6 49.0 -59.0
Increase/(decrease) in cash and cash equivalents 13.9 1.5 -55.7 -26.7 63.3
Cash and cash equivalents, beginning balance 98.7 76.8 168.3 105.0 105.0
Cash and cash equivalents, ending balance 112.6 78.3 112.6 78.3 168.3
Statement of cash flows by quarter
Million USD Q2 08 Q3 08 Q4 08 Q1 09 Q2 09
Cash flow from operating activities
Operating profit 158,0 119,7 106,6 48,9 -2,9
Adjustments:
Reversal of profit from sale of vessels -52,0 -10,8 -20,0 0,0 -12,5
Reversal of depreciation and impairment losses 31,1 31,3 33,0 31,8 33,5
Reversal of share of results of jointly controlled
entities -7,4 -6,1 -15,4 -0,9 0,7
Reversal of other non-cash movements -2,4 -0,8 0,0 -0,3 5,6
Dividends received 1,2 0,0 -0,1 0,0 0,0
Dividends received from joint controlled entities 0,2 1,5 0,9 0,7 2,1
Interest received and exchange rate gains 2,8 3,7 -2,8 1,8 2,4
Interest paid -18,4 -20,2 -21,8 -17,6 -12,1
Income taxes paid -0,3 0,4 -3,0 -1,7 -0,1
Change in inventories, accounts receivables and
payables -23,6 -7,5 43,2 -1,5 -4,9
Net cash inflow/(outflow) from operating activities 89,2 111,2 120,6 61,2 11,8
Cash flow from investing activities
Investment in tangible fixed assets -78.2 -112.6 -84.1 -129.5 -44.7
Investment in equity interests and securities -15.1 0.0 -0.4 0.0 0.0
Loans to jointly controlled entities 0.0 64.0 5.6 1.3 1.1
Payment of liability related to options on vessels 0.0 -11.0 4.3 1.5 0.0
Acquisition of enterprises and activities 0.0 0.0 0.0 0.0 0.0
Sale of equity interests and securities 17.4 0.0 0.0 0.0 0.0
Sale of non-current assets 68.5 63.0 37.4 0.0 26.0
Net cash inflow/(outflow) from investing activities -7.4 3.4 -37.2 -126.7 -17.6
Cash flow from financing activities
Borrowing, mortgage debt and other financial
liabilities 869.8 0.0 13.3 18.0 245.4
Repayment/redemption, mortgage debt -884.8 -59.5 -3.3 -22.1 -177.0
Dividends paid -65.3 0.0 -58.5 0.0 -48.7
Purchase/disposals of treasury shares 0.0 0.0 0.0 0.0 0.0
Cash inflow/(outflow) from financing activities -80.3 -59.5 -48.5 -4.1 19.7
Increase/(decrease) in cash and cash equivalents 1.5 55.1 34.9 -69.6 13.9
Cash and cash equivalents, beginning balance 76.8 78.3 133.4 168.3 98.7
Cash and cash equivalents, ending balance 78.3 133.4 168.3 98.7 112.6
