Annual Report 2018 and Outlook 2019
Attached please find the full report as PDF file.
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Announcement no. 9, 5 March 2019
Annual Report 2018 and Outlook 2019
Today, the Board of Directors approved the annual report for 2018. The full report in English is attached as PDF file and contains the following highlights:
Results
Adjusted result ("profit/loss for the period" adjusted for "Profit from sale of vessels etc.") for the year 2018: USD 20 million (2017: USD 28 million)
- Dry Operator: USD 30 million (2018 was the first full calendar year for NORDEN's two new business units)
- Dry Owner: USD 18 million (2018 was the first full calendar year for NORDEN's two new business units)
- Tankers: USD -28 million (USD 14 million)
EBIT 2018: USD 39 million (USD 23 million)
Dry Operator: Very strong finish to the year generating USD 17 million in Q4 despite weakening market.
Dry Owner: Increased cover for 2019 and 2020 and significant optionality in portfolio with more than 35,000 optional days available.
Tankers: Performance on par with 1-year T/C despite declining market throughout the year.
Guidance
Expected Adjusted Result for 2019 for the group: USD 25 to 60 million based on improved market conditions in the tanker market and limited exposure to an uncertain dry cargo market.
The Board of Directors proposes a dividend of DKK 2 per share on top of the share buy-back programme of USD 10 million that was completed during November 2018 to February 2019.
CEO Jan Rindbo in comment:
“2018 marked a highly succesful first full calendar year with the Dry Operator and Dry Owner set-up. Dry Operator alone realised an Adjusted Result of USD 30 million, and with strong performance in the fourth quarter demonstrated its ability to generate value also in softening markets. The profits generated in our 2 dry cargo business units show the strength of our business model, and more than off-set losses in Tankers in a historically poor tanker market. With continued strong performance in Dry Operator, an increase in coverage in Dry Owner and an increase in capacity in the tanker market, NORDEN is well positioned towards an uncertain dry cagro market and a tanker market expected to improve."
A telephone conference will be held today at 3:30 p.m. (CET), where CEO Jan Rindbo and CFO Martin Badsted will comment on the report. It is requested that all participants have joined the meeting by latest 3:25 p.m. (CET) – international participants please dial in on +44 (0) 207 192 8000 or +1 631 510 7495, Danish participants please dial in on +45 3272 8042. The telephone conference will be shown live at www.ds-norden.com, where the accompanying presentation will also be available.
For further information: Jan Rindbo, CEO, tel.: +45 3315 0451.
Key figures and financial ratios
| 2018 | 2017 | 2016 | 2015 | 2014 | |
| Income statement, USD million | |||||
| Revenue | 2,451.4 | 1,808.6 | 1,251.2 | 1,653.4 | 2,038.1 |
| Contribution margin | 132.3 | 116.8 | 76.1 | 70.9 | -205.6 |
| EBITDA) (excl. provisions) | 72.4 | 68.1 | 30.6 | 165.5 | -31.3 |
| Provision (excl. joint ventures) | 0.0 | 0.0 | 0.0 | -145.0 | -230.2 |
| EBITDA | 72.4 | 68.1 | 30.6 | 20.5 | -261.5 |
| Profit/loss from sale of vessels, etc. | 8.8 | 0.9 | -45.5 | -31.0 | 0.0 |
| Depreciation, amortisation and impairment losses | -44.3 | -42.2 | -49.6 | -248.6 | -68.2 |
| EBIT | 39.3 | 23.3 | -64.5 | -282.0 | -335.5 |
| Profit/loss for the year | 28.8 | 24.6 | -45.6 | -284.9 | -415.6 |
| Adjusted Result for the year 1) | 20.0 | 28.4 | -34.6 | -263.0 | -350.2 |
| Statement of financial position, USD million | |||||
| Total assets | 1,464.4 | 1,326.5 | 1,301.0 | 1,604.7 | 1,778.0 |
| Equity | 826.8 | 834.4 | 801.4 | 856.1 | 1,139.3 |
| Liabilities | 637.6 | 492.1 | 499.6 | 748.6 | 638.7 |
| Invested capital | 970.2 | 836.7 | 753.8 | 788.7 | 1,131.6 |
| Net interest-bearing assets | -143.4 | -2.3 | 47.6 | 67.3 | 7.7 |
| Cash and securities | 188.6 | 219.4 | 263.9 | 365.7 | 238.3 |
| Cash flows, USD million | |||||
| From operating activities | -24.7 | 6.3 | -79.7 | 76.9 | -46.0 |
| From investing activities | -78.4 | -0.2 | 102.1 | -112.9 | 66.2 |
| - hereof investments in property, plant and equipment | -181.4 | -75.4 | -36.8 | -131.6 | -110.4 |
| From financing activities | 104.5 | 3.0 | -85.3 | 67.5 | -79.4 |
| Share related key figures, USD million | |||||
| No. of shares of DKK 1 each (including treasury shares) | 42,200,000 | 42,200,000 | 42,200,000 | 42,200,000 | 42,200,000 |
| No. of shares of DKK 1 each (excluding treasury shares) | 39,923,933 | 40,467,615 | 40,467,615 | 40,467,615 | 40,460,055 |
| No. of treasury shares | 2,276,067 | 1,732,385 | 1,732,385 | 1,732,385 | 1,739,945 |
| Earnings per share (EPS) (DKK) | 0.7 (4) | 0.6 (4) | -1.1 (-8) | -7.0 (-47) | -10.3 (-58) |
| Diluted earnings per share (diluted EPS) (DKK) | 0.7 (4) | 0.6 (4) | -1.1 (-8) | -7.0 (-47) | -10.3 (-58) |
| Dividend per share, DKK | 2 | 0 | 0 | 0 | 0 |
| Book value per share (DKK) | 20.7 (135) | 20.6 (128) | 19.8 (140) | 21.2 (144) | 28.2 (172) |
| Share price at year-end, per share DKK 1 | 92.4 | 116.5 | 110.5 | 122.1 | 131.4 |
| Other key figures and financial ratios: | |||||
| EBITDA ratio | 3.0% | 3.8% | 2.4% | 1.2% | -12.8% |
| ROIC | 4.4% | 2.9% | -8.4% | -10.6% | -26.7% |
| ROE | 3.5% | 3.0% | -5.5% | -28.6% | -30.3% |
| Payout ratio (excluding treasury shares) 2) | 34.8% | 0.0% | 0.0% | 0.0% | 0.0% |
| Equity ratio | 56.5% | 62.9% | 61.6% | 53.3% | 64.1% |
| Price/book value | 0.7 | 0.9 | 0.8 | 0.8 | 0.8 |
| Total no. of ship days for the Group | 122,852 | 93,738 | 79,060 | 75,763 | 83,866 |
| USD rate at year-end | 651.94 | 620.77 | 705.28 | 683.00 | 612.14 |
| Average USD rate | 631.74 | 659.53 | 673.27 | 672.69 | 561.90 |
The ratios are computed in accordance with ”Recommendations and Financial Ratios 2015” issued by the Danish Association of Financial Analysts. However, ”Profit and loss from sale of vessels, etc.” is not included in EBITDA. Please see definitions in the section “Definitions of key figures and financial ratios”. The figures are adjusted for the Company’s holding of treasury shares.
1) “Adjusted results for the year” is computed as “Profit/loss for the year” adjusted for “Profit and loss from sale of vessels, etc.” and “Fair value adjustment of certain hedging instruments”. Including adjustment for sale of vessels in Joint Ventures.
2) The payout ratio was computed based on proposed dividends for the year, including extraordinary dividends paid during the year.
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DAMPSKIBSSELSKABET NORDEN A/S, 52, STRANDVEJEN, DK-2900 HELLERUP, CVR NO. 67758919