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Dampskibsselskabet NORDEN A/S
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NASDAQ OMX Copenhagen A/S Announcement no. 19
6, Nikolaj Plads 22 June 2010
1067 Copenhagen K
NORDEN raises its expectations for 2010
NORDEN has entered into agreements which improve earnings and optimise the
newbuilding programme.
Today, NORDEN has agreed to cancel the contract regarding a Capesize vessel
which has been chartered out to a business partner since 2008. As compensation
for cancelling the contract, NORDEN will receive a one-off payment, which
equals the value of the difference between the time charter hire and the
expected market rate in the remaining duration of the contract of 3 years.
NORDEN expects to recognise the whole amount at the end of June. The vessel is
redelivered to the Company in August.
On the basis of this, NORDEN raises its expectations for the operating profit
for 2010 before selling profits, depreciation and net financials (EBITDA) by
USD 30 million to USD 200-250 million, and expectations to the primary
operating profit (EBIT) are raised correspondingly. The upward adjustment
concerns the activities in Dry Cargo, while the expectations in Tankers are
unchanged.
Outlook for 2010 (USD million):
At 22 June At 19 May At 9 March
EBITDA 200-250 170-220 155-205
Profit from sale of vessels
(excluding profits of 5
million in joint venture) 29 29 26
EBIT 185-235 155-205 135-185
Furthermore, NORDEN has agreed to adjust an order for Handysize newbuildings
with a Far Eastern shipyard. Together with the previously announced adjustment
of orders for Handysize newbuildings at another shipyard (see interim report
from 19 May), the adjustments mean that the original 8 vessels under the 2
orders have been converted to 9 vessels and that the unit cost per vessel has
been reduced so that NORDEN's total purchase price under the 2 orders is
reduced by approximately USD 8 million.
Expected delivery of NORDEN's owned Handysize newbuildings:
Excl. sold vessels 2010 2011 2012
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
After adjustments 0 0 1 1 2 4 1 2 1 1 0
Before adjustments 1 1 3 2 2 1 1 1 0 0 0
Kind regards,
Dampskibsselskabet NORDEN A/S
Carsten Mortensen
CEO & President
Contact at tel. +45 3315 0451: Martin Badsted, Senior Vice President, and Hans
Bøving, Head of Corporate Communications.
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Dampskibsselskabet NORDEN A/S
52, Strandvejen
DK-2900 HELLERUP
CVR no. 67758919
www.ds-norden.com
