“Profit for third quarter 2009 is in line with expectations and better than the
second quarter. Despite the continued low freight rates for product tankers we
are satisfied with TORM's success in securing earnings above average market
levels and at the same time deliver the planned cost reductions. We see,
however, no signs of immediate market recovery, but our long-term strategic
focus on the product tanker market remains,” states CEO Mikael Skov.
• Profit before tax for the first nine months of 2009 was USD 11 million, in
line with the latest full-year forecast for 2009.
• Profit before tax for the third quarter was USD 4 million, including a
positive impact of USD 21 million from the sale of two bulk carriers. As
announced earlier, the vessels were sold during the second quarter, but the
profit was recognised in the third quarter in which delivery took place.
• The third quarter was negatively impacted by non-cash mark-to-market
adjustments of USD 7 million, with USD 5 million on financial instruments and
USD 2 million on FFA/bunker derivatives.
• In the third quarter, product tanker rates remained at the low levels seen at
the end of the second quarter. The market is still suffering from the negative
impact of low global oil demand and the addition of new tonnage. However, on
routes to and from Asia, rates picked up considerably towards the end of the
quarter, benefiting TORM's LR1 and LR2 vessels.
• Third quarter spot earnings in TORM's MR Pool were USD/day 12,580, which was
higher than the average rate levels seen on the main routes in the MR market.
In the negative market conditions, the pools focused on optimising the
transport patterns of the global fleet and its access to cargo contracts. This
resulted in more effective utilisation of the fleet and, consequently, higher
earnings.
• Bulk Panamax rates fell back in mid third quarter, but regained some ground
toward the end of the quarter. Due to TORM's high coverage of earning days, the
developments in bulk rates had limited impact on TORM's earnings.
• TORM's efficiency improvement programme - Greater Efficiency Power - had a
favourable effect on performance in the third quarter as vessel operating costs
per day dropped by an average of approximately 12% year-on-year across the
fleet. Furthermore, the administration expenses have been reduced by 21%
year-on-year. The efficiency improvement programme will, as planned, produce
annual cost savings of USD 40-60 million from 2010.
• On a quarterly basis, TORM calculates the long-term earnings potential of its
fleet based on discounted future cash flows. The value of the fleet thus
calculated supports the book values.
• At 30 September 2009, equity amounted to USD 1,274 million, equivalent to USD
18.4 per share (DKK 93.4 per share), excluding treasury shares, giving TORM an
equity ratio of 38%.
• TORM's unutilised loan facilities and cash totalled approximately USD 400
million at the end of the third quarter. Net interest-bearing debt totalled USD
1,682 million at 30 September 2009. Around 70% of the debt is due in 2013 or
later.
• At 30 September 2009, TORM had covered 49% of the remaining earning days for
2009 in the Tanker Division at USD/day 19,227 and 85% of the remaining earning
days in the Bulk Division at USD/day 17,050. For 2010, coverage at 30 September
2009 was 24% at USD/day 20,033 in the Tanker Division and 46% at USD/day 16,650
in the Bulk Division.
• TORM maintains its forecast of a profit before tax of around break-even for
2009.
Telecon-ference
A teleconference and webcast (www.torm.com) will take place today, at 15:00
Copenhagen time (CET), see details on page 9.
Contact
TORM A/S
Tuborg Havnevej 18
DK-2900 Hellerup, Denmark
Telephone: +45 39 17 92 00
Mikael Skov, CEO
Roland M. Andersen, CFO
Key figures
Million USD Q3 2009 Q3 2008 Q1-Q3 2009 Q1-Q3 2008 2008
Income statement
Net revenue 208.8 336.6 661.2 878.2 1.183.6
Time charter equivalent earnings (TCE) 149.4 244.2 486.7 680.2 905.9
Gross profit 54.4 152.3 190.8 409.3 537.8
EBITDA 59.2 150.9 170.5 432.7 572.3
Operating profit 24.2 119.6 70.2 339.6 446.3
Profit before tax 4.4 91.3 11.1 289.8 360.1
Net profit 2.1 90.8 8.1 288.4 361.4
Balance sheet
Total assets 3,360.1 3,242.5 3,360.1 3,242.5 3,317.4
Equity 1,274.3 1,268.5 1,274.3 1,268.5 1,278.9
Total liabilities 2,085.8 1,974.0 2,085.8 1,974.0 2,038.5
Invested capital 2,947.6 2,833.3 2,947.6 2,833.3 2,822.4
Net interest bearing debt 1,681.9 1,574.7 1,681.9 1,574.7 1,549.9
Cash flow
From operating activities 22.2 111.2 95.2 264.1 384.7
From investing activities -34.2 3.4 -178.5 -225.2 -262.4
Thereof investment in tangible fixed assets -87.1 -112.6 -261.3 -293.7 -377.8
From financing activities 95.7 -59.5 111.3 -10.5 -59.0
Net cash flow 83.7 55.1 28.0 28.4 63.3
Key financial figures
Margins:
TCE 71.6% 72.5% 73.6% 77.5% 76.5%
Gross profit 26.1% 45.2% 28.9% 46.6% 45.4%
EBITDA 28.4% 44.8% 25.8% 49.3% 48.3%
Operating profit 11.6% 35.5% 10.6% 38.7% 37.7%
Return on Equity (RoE) (p.a.)*) -3.5% 26.7% 0.0% 30.9% 30.6%
Return on Invested Capital (RoIC) (p.a.)**) 1.2% 15.6% 2.6% 15.8% 16.4%
Equity ratio 37.9% 39.1% 37.9% 39.1% 38.6%
Exchange rate USD/DKK, end of period 5.08 5.22 5.08 5.22 5.28
Exchange rate USD/DKK, average 5.21 4.97 5.47 4.91 5.09
Share related key figures
Earnings per share, EPS USD 0.0 1.3 0.1 4.2 5.2
Diluted earnings per share, DEPS USD 0.0 1.3 0.1 4.2 5.2
Cash flow per share, CFPS USD 0.3 1.6 1.4 3.8 5.6
Share price, end of period
(per share of DKK 5 each) DKK 51.6 126.2 51.6 126.2 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
Mio. USD Q3 2009 Q1-Q3 2009
Tanker Division Bulk Division Not Allocated Total Tanker Division Bulk
Division Not Allocated Total
Revenue 185.3 23.5 0.0 208.8 568.3 92.9 0.0 661.2
Port expenses, bunkers and
commissions -55.1 -1.0 0.0 -56.1 -159.5 -3.5 0.0 -163.0
Freight and bunkers derivatives -3.3 0.0 0.0 -3.3 -11.5 0.0 0.0 -11.5
Time charter equivalent earnings 126.9 22.5 0.0 149.4 397.3 89.4 0.0 486.7
Charter hire -42.1 -14.2 0.0 -56.3 -121.6 -43.9 0.0 -165.5
Operating expenses -36.8 -1.9 0.0 -38.7 -121.2 -9.2 0.0 -130.4
Gross Profit 48.0 6.4 0.0 54.4 154.5 36.3 0.0 190.8
Profit from sale of vessels 0.0 20.7 0.0 20.7 0.0 33.2 0.0 33.2
Administrative expenses -16.6 -1.3 0.0 -17.9 -55.3 -5.2 0.0 -60.5
Other Operating income 1.5 0.0 0.0 1.5 6.3 0.0 0.0 6.3
Share of results of jointly controlled
entities* 0.7 0.0 -0.2 0.5 2.4 0.0 -1.7 0.7
EBITDA 33.6 25.8 -0.2 59.2 107.9 64.3 -1.7 170.5
Depreciation and impairment losses -33.7 -1.3 0.0 -35.0 -94.6 -5.7 0.0 -100.3
Operating profit -0.1 24.5 -0.2 24.2 13.3 58.6 -1.7 70.2
Financial items, net - - -19.8 -19.8 - - -59.1 -59.1
Profit/(Loss) before tax - - -20.0 4.4 - - -60.8 11.1
Tax - - -2.3 -2.3 - - -3.0 -3.0
Net profit - - -22.3 2.1 - - -63.8 8.1
*) 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 third quarter of 2009 was
USD 34 million.
In the third quarter, product tanker rates remained at the low level seen at
the end of the second quarter, and the market is still suffering from the
negative impacts of low global demand for oil and the addition of new tonnage.
However, toward the end of the third quarter, rates rose significantly for the
large vessels, LR1 and LR2, driven by a demand for naphtha in the Far East and
increased exports from new refineries in the East. At the end of September,
spot rates were well over USD/day 20,000 for both LR1 and LR2 vessels, relative
to a level of just over USD/day 10,000 at the end of the second quarter.
MR rates were low throughout the quarter, primarily as a result of limited US
demand for gasoline. Third quarter spot earnings in TORM's MR Pool were USD/day
12,580, which was higher than the average rate levels seen on the main routes
in the MR market. In the negative market conditions, the pools focused on
optimising the transport patterns of the global fleet and its access to cargo
contracts. This resulted in more effective utilisation of the fleet and,
consequently, higher earnings.
The tanker market was affected by the following main factors in the third
quarter:
Positive impact:
• Use of LR1 and LR2 vessels as floating storage facilities and slow steaming
reduced the supply of available tonnage. The vessels mainly stored gasoil off
the coasts of the EU and West Africa
• Increased exports from new refineries in the East
• Higher demand for naphtha in the Far East
Negative impact:
• Continued low demand for gasoline in the USA
• Delivery of a large number of newbuildings
• High fuel costs
• Lower utilisation of refinery capacity squeezed the demand for crude oil
transports and, consequently, the earnings of some of the LR2 vessels
In the third quarter of 2009, the Tanker Division achieved freight rates which,
relative to the third quarter of 2008, were 64% lower for the LR2 segment, 30%
lower for the LR1 segment, 42% lower for the MR segment and 8% lower for the SR
segment.
The efficiency improvement programme, Greater Efficiency Power, produced an
average cost reduction per ship day of 11% relative to the third quarter of
2008.
Tanker Division Q3 08 Q4 08 Q1 09 Q2 09 Q3 09
Change
Q3 08
- Q3 09 12 month avg.
LR2 (Aframax, 90-110,000 DWT)
Available earning days 970 1,104 1,167
1,179 1,190 23%
TCE per earning day from the LR2 Pool 45,267 37,009
24,192 17,145 18,401 -59%
TCE per earning day1) 48,421 31,862 21,977
15,785 17,406 -64% 21,583
Operating days 963 1,069 1,080 1,092
1,104 15%
Operating expenses per operating day2) 7,319 8,564
7,507 7,556 6,496 -11% 7,522
LR1 (Panamax 75-85,000 DWT)
Available earning days 1,804 2,009 1,864 1,756
1,835 2%
TCE per earning day from the LR1 Pool 34,700 35,140 22,503
15,577 15,036 -57%
TCE per earning day1) 23,648 23,217 21,755 18,491
16,514 -30% 23,301
Operating days 828 828 810 819
828 1%
Operating expenses per operating day2) 7,798 7,478 7,852
7,142 6,706 -14% 7,292
MR (45,000 DWT)
Available earning days 2,668 2,796 3,174
3,344 3,602 35%
TCE per earning day from the MR Pool 29,102 22,282
20.201 14,712 14,974 -49%
TCE per earning day1) 26,458 22,298 19,802
15,363 15,349 -42% 17,951
Operating days 2,484 2,400 2,497 2,548
2,707 11%
Operating expenses per operating day2) 7,609 7,653
8,227 7,458 6,621 -13% 7,464
SR (35,000 DWT)
Available earning days 1,100 1,102 1,145
1,135 1,160 5%
TCE per earning day1) 20,078 22,338 20,963
17,483 18,378 -8% 19,767
Operating days 920 920 969
1,001 1,012 10%
Operating expenses per operating day2) 6,193 6,633
7,662 6,600 6,105 -1% 6,743
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 third quarter of
2009 was USD 26 million. USD 21 million of this was attributable to the sale of
TORM Marta and TORM Tina. The vessels were sold during the second quarter, but
the profit was recognised in the third quarter in which delivery took place.
Bulk Panamax rates fell back in mid third quarter, but regained some ground
toward the end of the quarter, and their third-quarter performance was thus
relatively better than that of the larger Capesize vessels. Chinese coal and
iron ore imports remain the most significant driver of bulk rates.
Going into the quarter, TORM's coverage of earning days was high, and therefore
the spot rate developments had limited impact on Bulk Division earnings.
The bulk market was affected by the following main factors in the third quarter:
Positive impact:
• Continued extensive Chinese coal and iron ore imports, which reached a new
high during the third quarter
• During the quarter, the number of waiting days rose to its highest level in
2009, but subsequently fell at the end of the quarter
• Higher steel production, principally in China, but also to some extent in
Europe and Japan
Negative impact:
• Delivery of a large number of newbuildings
• Slowdown in the phasing out of old vessels due to the higher freight rates
The Bulk Division's earnings per day were 64% lower in the third quarter of
2009 than in the same quarter of 2008.
The efficiency improvement programme, Greater Efficiency Power, produced an
average cost reduction per ship day of 28% relative to the third quarter of
2008.
Bulk Division Q3 08 Q4 08 Q1 09 Q2 09 Q3 09
Change
Q3 08
- Q3 09 12 month avg.
Panamax (60-80,000 DWT)
Available earning days 1,421 1,466 1,458 1,496 1,255 -12%
TCE per earning day1) 49,888 38,958 13,929 13,756 17,968 -64% 21,242
Operating days 552 600 622 636 392 -29%
Operating expenses per operating day2) 6,261 5,352 6,798 5,106 4,477 -28%
5,530
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 profits on investments in
joint ventures of USD 0 million, financial expenses of USD 20 million and tax
of USD 2 million.
Fleet development In the third quarter, TORM took delivery of two MR
newbuildings and delivered the two sold Panamax bulk carriers TORM Marta and
TORM Tina to their new owners. At the end of the quarter, TORM's fleet of owned
vessels comprised 63 tankers and four bulk carriers. In addition to these, TORM
had 25 tankers and ten bulk carriers on time charter. Additional 37 tankers
were either in pools or under commercial management.
Planned fleet changes No vessels were contracted in the third quarter of 2009,
and at the end of the quarter the order book thus comprised 12 MR vessels and
four Kamsarmax vessels. The remaining Capex relating to the order book amounted
to USD 483 million.
Results
Third quarter 2009 The gross profit for the third quarter of 2009 was USD 54
million, against USD 152 million for the corresponding quarter of 2008. The
administration expenses were USD 17.9 million, against USD 22.6 million for the
third quarter of 2008, corresponding to a reduction of 21%. Profit before
depreciation (EBITDA) for the period was USD 59 million, against USD 151
million for the third quarter of 2008. The decline in gross profit and EBITDA
was due to significantly lower freight rates for both tankers and bulk
carriers.
Depreciation was USD 35 million during the third quarter of 2009.
An operating profit of USD 24 million was posted for the third quarter of 2009,
against USD 120 million for the same quarter of 2008. The Tanker and Bulk
Divisions contributed profits of USD 0 million and USD 25 million,
respectively.
In the third quarter, there was a negative effect from non-cash mark-to-market
adjustments of USD 7 million, with USD 5 million on financial instruments and
USD 2 million on FFA/bunker derivatives.
In the third quarter of 2009, financials amounted to an expense of USD 20
million, against an expense of USD 28 million in the same quarter of 2008.
A profit after tax of USD 2 million was posted in the third quarter of 2009,
against USD 91 million in the third quarter of 2008.
Assets Total assets rose from USD 3,256 million to USD 3,360 million in the
third quarter of 2009.
On a quarterly basis, TORM calculates the long-term earnings potential of its
fleet based on discounted future cash flows. The value of the fleet thus
calculated supports the book values. In addition, TORM receives quarterly
valuations of its fleet's market value from three internationally acknowledged
shipbrokers. Based on the broker valuations, the market value of TORM's fleet
was below book value at 30 September 2009. However, as the market for product
tankers is currently illiquid, the broker valuations are subject to significant
uncertainty.
Liabilities During the third quarter of 2009, the net interest-bearing debt
rose from USD 1,670 million to USD 1,682 million. The item mainly comprised net
borrowing in connection with the delivery of vessels and positive cash earnings
of the period. Around 70% of the debt is due in 2013 or later.
Total equity In the third quarter of 2009, equity rose from USD 1,270 million
to USD 1,274 million, which is principally the result of earnings during the
period. Equity as a percentage of total assets dropped from 39% at 30 June 2009
to 38% at 30 September 2009.
At 30 June 2009, TORM held 3,556,364 treasury shares, corresponding to 4.9% of
the Company's share capital, which was unchanged from 30 June 2009.
Liquidity TORM's unutilised loan facilities and cash totalled approximately USD
400 million at the end of the third quarter.
Outlook TORM's forecast for 2009 of a profit before tax of around break-even,
as stated in announcement no. 11 dated 12 August 2009, is unchanged.
Sensitivity At 30 September 2009, TORM had covered 49% of the remaining earning
days for 2009 in the Tanker Division at USD/day 19,227 and 85% of the remaining
earning days in the Bulk Division at USD/day 17,050. For 2010, coverage was 24%
at USD/day 20,033 in the Tanker Division and 46% at USD/day16,650 in the Bulk
Division.
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 51.5 at 30 September 2009, against DKK 54 at
the beginning of the third quarter, equivalent to a decrease of DKK 3.5 (6%).
Accounting policies
This interim report for the third quarter 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 same 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 Concession Agreements” and IFRIC 13
“Customer Loyalty Programmes”. The new standards and interpretations have not
affected recognition and measurement in TORM's interim report for the third
quarter 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 third 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
18 November 2009 at 15:00 Copenhagen time (CET), reviewing the interim report
for the third 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 +1 887 491 0064 (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 Annual Report 2009 will be released on 11 March 2010.
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 September 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, 18 November 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
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 runs a
fleet of approximately 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, Denmark. TORM's shares are listed on the NASDAQ
OMX Copenhagen (ticker: TORM) and on NASDAQ in New York (ticker: TRMD). For
further information, please visit www.torm.com.
Income statement
Million USD Q3 2009 Q3 2008 Q1-Q3 2009 Q1-Q3 2008 2008
Revenue 208.8 336.6 661.2 878.2 1,183.6
Port expenses, bunkers and commissions -56.1 -76.5 -163.0 -190.4 -264.1
Freight and bunkers derivatives -3.3 -15.9 -11.5 -7.6 -13.6
Time charter equivalent earnings 149.4 244.2 486.7 680.2 905.9
Charter hire -56.3 -50.4 -165.5 -140.7 -193.8
Operating expenses -38.7 -41.5 -130.4 -130.2 -174.3
Gross profit (Net earnings from shipping activities)
54.4 152.3 190.8 409.3 537.8
Profit from sale of vessels 20.7 10.8 33.2 62.8 82.8
Administrative expenses -17.9 -22.6 -60.5 -62.1 -89.9
Other operating income 1.5 4.3 6.3 11.0 14.5
Share of results of jointly controlled entities 0.5 6.1 0.7 11.7 27.1
EBITDA 59.2 150.9 170.5 432.7 572.3
Depreciation and impairment losses -35.0 -31.3 -100.3 -93.1 -126.0
Operating profit 24.2 119.6 70.2 339.6 446.3
Financial items -19.8 -28.3 -59.1 -49.8 -86.2
Profit before tax 4.4 91.3 11.1 289.8 360.1
Tax -2.3 -0.5 -3.0 -1.4 1.3
Net profit 2.1 90.8 8.1 288.4 361.4
Earnings per share, EPS
Earnings per share, EPS (USD) 0.0 1.3 0.1 4.2 5.2
Earnings per share, EPS (DKK)*) 0.2 6.5 0.6 20.4 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 Q3 2009 Q3 2008 Q1-Q3 2009 Q1-Q32008 2008
Net profit for the period 2.1 90.8 8.1 288.4 361.4
Other comprehensive income:
Exchange rate adjustment arising on translation
of entities using a measurement currency different
from USD 0.0 -0.1 0.0 0.0 0.0
Fair value adjustment on hedge instruments 0.5 -40.0 25.0 -42.6 -56.5
Value adjustment on hedge instruments transferred 0.1 6.9 3.9 4.9 15.1
to income statement
Value adjustment on hedge instruments transferred 0.0 0.0 -1.2 0.0 -
to assets
Fair value adjustment on available for sale investments 1.5 -1.8 2.2 -3.9 -4.8
Transfer to income statement on sale of available for sale investments
0.0 0.0 0 0.0 -2.6
Other comprehensive income after tax
2.1 -35.0 29.9 -41.6 -48.8
Total comprehensive income 4.2 55.8 38.0 246.8 312.6
Income statement by quarter
Million USD Q3 08 Q4 08 Q1 09 Q2 09 Q3 09
Revenue 336.6 305.4 258.8 193.6 208.8
Port expenses, bunkers and commissions -76.5 -73.7 -58.8 -48.1 -56.1
Freight and bunkers derivatives -15.9 -6.0 -0.9 -7.3 -3.3
Time charter equivalent earnings 244.2 225.7 199.1 138.2 149.4
Charter hire -50.4 -53.1 -54.1 -55.1 -56.3
Operating expenses -41.5 -44.1 -47.5 -44.2 -38.7
Gross profit (Net earnings from shipping activities) 152.3 128.5 97.5 38.9 54.4
Profit from sale of vessels 10.8 20.0 0.0 12.5 20.7
Administrative expenses -22.6 -27.8 -20.1 -22.5 -17.9
Other operating income 4.3 3.5 2.4 2.4 1.5
Share of results of jointly controlled entities 6.1 15.4 0.9 -0.7 0.5
EBITDA 150.9 139.6 80.7 30.6 59.2
Depreciation and impairment losses -31.3 -32.9 -31.8 -33.5 -35.0
Operating profit 119.6 106.7 48.9 -2.9 24.2
Financial items -28.3 -36.4 -9.7 -29.6 -19.8
Profit before tax 91.3 70.3 39.2 -32.5 4.4
Tax -0.5 2.7 0.4 -1.1 -2.3
Net profit 90.8 73.0 39.6 -33.6 2.1
Earnings per share, EPS*
Earnings per share, EPS (USD) 1.3 1.1 0.6 -0.5 0.0
*) The key figures have been translated from USD to DKK using the average
USD/DKK exchange change rate for the period in question.
Assets
Million USD 30 Sep. 2009 30 Sep. 2008 31 Dec. 2008
NON-CURRENT ASSETS
Intangible assets
Goodwill 89.2 89.2 89.2
Other intangible assets 2.3 3.1 2.4
Total intangible assets 91.5 92.3 91.6
Tangible fixed assets
Land and buildings 3.7 3.8 3.7
Vessels and capitalized dry-docking 2,421.4 2,240.6 2,325.9
Prepayments on vessels 293.0 308.1 272.7
Other plant and operating equipment 9.9 7.6 9.2
Total tangible fixed assets 2,728.0 2,560.1 2,611.5
Financial assets
Investment in jointly controlled entities 132.3 113.8 130.5
Loans to jointly controlled entities 39.2 49.4 42.2
Other investments 8.6 9.9 6.4
Other financial assets 8.5 46.0 31.0
Total financial assets 188.6 219.1 210.1
TOTAL NON-CURRENT ASSETS 3,008.1 2,871.5 2,913.2
CURRENT ASSETS
Bunkers 21.0 29.0 18.3
Freight receivables, etc. 62.8 127.6 120.2
Other receivables 52.3 56.7 72.0
Other financial assets 4.3 0.0 10.7
Prepayments 15.3 9.2 14.7
Cash and cash equivalents 196.3 133.4 168.3
352.0 355.9 404.2
Assets held for sale 0.0 15.1 0.0
TOTAL CURRENT ASSETS 352.0 371.0 404.2
TOTAL ASSETS 3,360.1 3,242.5 3,317.4
Equity and liabilities
Million USD 30 Sep. 2009 30 Sep. 2008 31 Dec. 2008
EQUITY
Common shares 61.1 61.1 61.1
Treasury shares -18.1 -18.1 -18.1
Revaluation reserves 2.1 3.4 -0.1
Retained profit 1,230.1 1,247.0 1,209.5
Proposed dividends 0.0 0.0 55.1
Hedging reserves -5.0 -29.0 -32.7
Translation reserves 4.1 4.1 4.1
TOTAL EQUITY 1,274.3 1,268.5 1,278.9
LIABILITIES
Non-current liabilities
Deferred tax liability 55.1 55.3 55.1
Mortgage debt and bank loans 1,702.2 1,514.6 1,505.8
Finance lease liabilities 32.1 0.0 0.0
Acquired liabilities related to options on vessels 2.3 20.9 10.7
Acquired time charter contracts 0.1 6.5 3.9
TOTAL NON-CURRENT LIABILITIES 1,791.8 1,597.3 1,575.5
Current liabilities
Mortgage debt and bank loans 142.0 193.5 212.4
Finance lease liabilities 1.9 0.0 0.0
Trade payables 32.6 61.6 49.0
Current tax liabilities 11.2 15.2 9.7
Other liabilities 97.5 93.1 179.8
Acquired liabilities related to options on vessels 1.8 0.0 0.0
Acquired time charter contracts 6.3 11.5 11.2
Deferred income 0.7 1.8 0.9
TOTAL CURRENT LIABILITIES 294.0 376.7 463.0
TOTAL LIABILITIES 2,085.8 1,974.0 2,038.5
TOTAL EQUITY AND LIABILITIES 3,360.1 3,242.5 3,317.4
Equity 1 January - 30 September 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-Q3 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 - - 6.1 - - - - 6.1
Comprehensive income for the period - - 8.1 - 2.2 27.7 0.0 38.0
Total changes in equity Q1-Q3 2009 0.0 0.0 20.6 -55.1 2.2 27.7 0.0 -4.6
Equity at 30 September 2009 61.1 -18.1 1,230.1 0.0 2.1 -5.0 4.1 1,274.3
Equity 1 January - 30 September 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-Q3 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 - - 5.8 - - - - 5.8
Comprehensive income for the period - - 288.4 - -3.9 -37.7 0.0 246.8
Total changes in equity Q1-Q3 2008 0.0 0.0 293.4 -64.5 -3.9 -37.7 0.0 187.3
Equity at 30 September 2008 61.1 -18.1 1,247.0 0.0 3.4 -29.0 4.1 1,268.5
Statement of cash flows
Million USD Q3 2009 Q3 2008 Q1-Q3 2009 Q1-Q3 2008 2008
Cash flow from operating activities
Operating profit 24,2 119,7 70,2 339,7 446,3
Adjustments:
Reversal of profit from sale of vessels -20,7 -10,8 -33,2 -62,8 -82,8
Reversal of depreciation and impairment losses 35,0 31,3 100,3 93,1 126,1
Reversal of share of results of jointly controlled
entities -0,5 -6,1 -0,7 -11,7 -27,1
Reversal of other non-cash movements -0,6 -0,8 4,7 -7,8 -7,8
Dividends received 0,0 0,0 0,0 1,4 1,3
Dividends received from joint controlled entities 0,0 1,5 2,8 3,0 3,9
Interest received and exchange rate gains 0,1 3,7 4,3 16,2 13,4
Interest paid -14,4 -20,2 -44,1 -62,5 -84,3
Income taxes paid -0,1 0,4 -1,9 -1,2 -4,2
Change in inventories, accounts receivables and
payables -0,8 -7,5 -7,2 -43,3 -0,1
Net cash inflow/(outflow) from operating activities 22,2 111,2 95,2 264,1 384,7
Cash flow from investing activities
Investment in tangible fixed assets -87,1 -112,6 -261,3 -293,7 -377,8
Investment in equity interests and securities 0,0 0,0 0,0 -133,5 -133,9
Loans to jointly controlled entities 0,5 64,0 2,9 64,0 69,6
Payment of liability related to options on vessels 0,0 -11,0 1,5 -11,0 -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 0,0 0,0 17,4 17,4
Sale of non-current assets 52,4 63,0 78,4 131,6 169,0
Net cash inflow/(outflow) from investing
activities -34,2 3,4 -178,5 -225,2 -262,4
Cash flow from financing activities
Borrowing, mortgage debt and other financial
liabilities 110,5 0,0 373,9 1.007,4 1.020,7
Repayment/redemption, mortgage debt -14,8 -59,5 -213,9 -952,6 -955,9
Dividends paid 0,0 0,0 -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 95,7 -59,5 111,3 -10,5 -59,0
Increase/(decrease) in cash and cash equivalents 83,7 55,1 28,0 28,4 63,3
Cash and cash equivalents, beginning balance 112,6 78,3 168,3 105,0 105,0
Cash and cash equivalents, ending balance 196,3 133,4 196,3 133,4 168,3
Statement of cash flows by quarter
Million USD Q3 08 Q4 08 Q1 09 Q2 09 Q3 09
Cash flow from operating activities
Operating profit 119,7 106,6 48,9 -2,9 24,2
Adjustments:
Reversal of profit from sale of vessels -10,8 -20,0 0,0 -12,5 -20,7
Reversal of depreciation and impairment losses 31,3 33,0 31,8 33,5 35,0
Reversal of share of results of jointly controlled
entities -6,1 -15,4 -0,9 0,7 -0,5
Reversal of other non-cash movements -0,8 0,0 -0,3 5,6 -0,6
Dividends received 0,0 -0,1 0,0 0,0 0,0
Dividends received from joint controlled entities 1,5 0,9 0,7 2,1 0,0
Interest received and exchange rate gains 3,7 -2,8 1,8 2,4 0,1
Interest paid -20,2 -21,8 -17,6 -12,1 -14,4
Income taxes paid 0,4 -3,0 -1,7 -0,1 -0,1
Change in inventories, accounts receivables and
payables -7,5 43,2 -1,5 -4,9 -0,8
Net cash inflow/(outflow) from operating activities 111,2 120,6 61,2 11,8 22,2
Cash flow from investing activities
Investment in tangible fixed assets -112,6 -84,1 -129,5 -44,7 -87,1
Investment in equity interests and securities 0,0 -0,4 0,0 0,0 0,0
Loans to jointly controlled entities 64,0 5,6 1,3 1,1 0,5
Payment of liability related to options on vessels -11,0 4,3 1,5 0,0 0,0
Acquisition of enterprises and activities 0,0 0,0 0,0 0,0 0,0
Sale of equity interests and securities 0,0 0,0 0,0 0,0 0,0
Sale of non-current assets 63,0 37,4 0,0 26,0 52,4
Net cash inflow/(outflow) from investing activities 3,4 -37,2 -126,7 -17,6 -34,2
Cash flow from financing activities
Borrowing, mortgage debt and other financial
liabilities 0,0 13,3 18,0 245,4 110,5
Repayment/redemption, mortgage debt -59,5 -3,3 -22,1 -177,0 -14,8
Dividends paid 0,0 -58,5 0,0 -48,7 0,0
Purchase/disposals of treasury shares 0,0 0,0 0,0 0,0 0,0
Cash inflow/(outflow) from financing activities -59,5 -48,5 -4,1 19,7 95,7
Increase/(decrease) in cash and cash equivalents 55,1 34,9 -69,6 13,9 83,7
Cash and cash equivalents, beginning balance 78,3 133,4 168,3 98,7 112,6
Cash and cash equivalents, ending balance 133,4 168,3 98,7 112,6 196,3
