Further strengthening of funding and revised outlook for 2012
The Lauritzen Foundation has extended the maturity of
a DKK 600m subordinated loan provided in 2009 with an
original scheduled maturity in April 2014. The
maturity has been extended by eight years to 2022.
Terms regarding post delivery financing for three
Chinese newbuildings to be delivered in 2013 has been
agreed upon and a loan agreement will be finalized
during Q2 2012.
Both agreements will strengthen JL's medium term
Revised outlook for 2012
In general the world economy is expected to recover
at a slower pace than earlier expected and
uncertainties remain high.
The supply of new tonnage, in particular in the dry
bulk segment, will as expected continue at a high
pace. This will combined with slower economic
recovery challenge the bulk market even further and
is projected to deteriorate Lauritzen Bulkers'
results and negatively affect JL's overall results
compared to previously communicated expectations.
Lauritzen Kosan, Lauritzen Tankers and Lauritzen
Offshore are expected to perform in line with or
better than previously communicated expectations,
however not to a level sufficient to offset the
effects of the depressed bulk market.
First quarter EBITDA amounted to USD 38m up app 7m
compared to 2011. Less one-off items EBITDA was
approximately USD 30m, which was slightly lower than
expected. Taking seasonality into account, the
average EBITDA per quarter for the balance of the
year is expected at the same level and thus the full
year EBITDA (less one-offs) will no longer, as
previously communicated, increase by 20-25% compared
to 2011. Full year EBITDA is now expected to be
significantly below the EBITDA reported in 2011.
Net result for 2012 is now expected to be at the same
level as in 2011. However, a continuation of the
currently depressed dry bulk market may affect vessel
values negatively and may subsequently result in
write-downs or realisation of losses in case of sale