Interim report – first quarter 2014

| Source: Dampskibsselskabet NORDEN A/S

Attached please find the full report as PDF file.


Announcement no. 21

13 May 2014

Interim report – first quarter 2014

Today, the Board of Directors approved the interim report for the first quarter of 2014. The full report is attached as PDF file and contains the following highlights:

• EBITDA as expected USD -8 million (Q1 2013: USD 10 million)

• Heavy decrease in the dry cargo market has continued into the second quarter with unexpected magnitude, but improvement is expected in the second half-year

• Disappointing MR market but surprisingly strong Handysize market in tankers

• Investments in additional 7.5 eco vessels in the beginning of the quarter bring the order book up to 37 vessels

• Continued increasing ship values especially in Dry Cargo

• Changed estimate of the vessels’ useful lives, etc. has a positive effect on EBIT of USD 5 million due to lower depreciation

• A share buy-back of USD 10 million is planned to be carried out during the next 3 months

• Expectations for 2014 EBITDA are adjusted downwards to USD -40 to USD 60 million (USD 20-120 million)

President and CEO Carsten Mortensen in comment:

As expected, the first quarter saw challenging market conditions, not least in dry cargo where the Atlantic market more or less collapsed. This collapse has also had a significant impact on the second quarter, which we were otherwise expecting to contribute positively to operating earnings. Therefore, we now take the consequence of this and make a downward adjustment of the expectations for the results for the year. However, this does not change the fact that we are still expecting an improvement of the markets in the second half-year and that I am pleased with the continued increase in ship values, which are now USD 175 million above carrying amounts.”

A telephone conference will be held today at 3:30 p.m. (CET) where CEO Carsten Mortensen, CFO Michael Tønnes Jørgensen and Executive Vice President Martin Badsted will comment on the report. By 3:25 p.m. (CET) at the latest, Danish participants should dial in on +45 3272 8018 while participants from abroad should dial in on +44 (0) 145 255 5131 or +1 866 682 8490. The telephone conference can be followed live at where the accompanying presentation is also available.

Further information: CEO Carsten Mortensen, tel. +45 3315 0451.