Dampskibsselskabet NORDEN A/S, Interim report - third quarter 2008

Attached please find the full report as PDF file.


Dampskibsselskabet NORDEN A/S
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NASDAQ OMX Copenhagen A/S                                   Announcement no. 39
Nikolaj Plads 6                                                19 November 2008
DK-1067 Copenhagen K


Interim report - third quarter 2008

First three quarters - highlights

The profit for the first three quarters of 2008 was USD 718 million
corresponding to DKK 3.5 billion. The profit is 49% up on the same period last
year and is the best result for the first three quarters in the Company's
history. 

Seen on its own, the profit for the third quarter was USD 120 million.
With an EBITDA of USD 197 million (+43%) and an EBIT of USD 273 million (+78%),
the operating profit was very strong, but this is to some extent offset by
negative fair value adjustments of certain hedging instruments as a result of
the oil price development and FFA hedging. 

The dry cargo rates were dropping heavily during the quarter, but due to its
long-term coverage of tonnage at reasonable rates, the Dry Cargo Department
achieved an EBITDA of USD 171 million. In the third quarter, the Tanker
Department reached its highest operating profit ever with an EBITDA of USD 25
million. The tanker department continues to benefit from its strengthened
position in the attractive spot markets for product tankers. 

In the third quarter, the Company's operations generated a positive cash flow
of USD 87 million. In the first three quarters, the Company's operations have
generated a total cash flow of USD 410 million. 

NORDEN has taken advantage of the flexibility of its business model to promptly
adjust capacity and activities to the significantly changed conditions in the
dry cargo market. At the same time, NORDEN is positioning itself for the
long-term possibilities. The number of short-term chartered vessels has been
substantially reduced since 1 October, and in total, the Company can return
more than 100 short-term chartered vessels before the end of 2008. 

The coverage has increased, and thus, the rest of the year's known capacity in
the Dry Cargo Department de facto was fully covered at the beginning of
November, and 66% of the known capacity in the Tanker Department had also been
covered at this time. For 2009, the coverage was increased to 80% in the Dry
Cargo Department and 34% in the Tanker Department. 

Based on the broker estimates which the Company has been able to collect at 1
November as well as received offers on some of NORDEN's owned vessels, the
theoretical Net Asset Value (NAV) is estimated to have been DKK 280-320 per
share at this time. At present, there is significant uncertainty regarding the
estimation of the Company's NAV and theoretical NAV. 

NORDEN adjusts the total expectations for the annual profit for 2008 to be in
the range of USD 740-800 million, against earlier announced USD 800-880
million. The adjustment is essentially due to the dropping oil prices, which
trigger large negative fair value adjustments of certain hedging instruments
(IAS 39). For the whole year, the IAS 39 adjustments are estimated to amount to
USD -65 million, whereas the expected adjustments amounted to USD -10 million
in the announcement of 1 October. The expectations for the Tanker Department
remain an operating profit (EBITDA) of USD 60-70 million, whereas the EBITDA
expectations in the Dry Cargo Department are narrowed to USD 500-530 million
due to the drop in rates, loss on one counterparty and postponement of a number
of profitable cargoes. This is, however, somewhat counterbalanced by earnings
on new business and savings. 


                Mogens Hugo                    Carsten Mortensen
           Chairman of the Board                President & CEO


Today at 11.00 hours (CET), NORDEN will hold an information meeting at 52,
Strandvejen, DK-2900 Hellerup, where CEO Carsten Mortensen and Senior Vice
President Martin Badsted will comment on the third quarter and the expectations
for the whole year. 

Furthermore, a telephone conference will be held at 16.00 hours (CET). By 15.55
hours (CET) at the latest, Danish participants should dial +45 3271 4767 while
participants from abroad should dial +44 (0) 208 817 9301 or +1 718 354 1226.
The telephone conference can also be followed live at www.ds-norden.com where
the accompanying presentation also is available. 

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

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                         Dampskibsselskabet NORDEN A/S
                               52, Strandvejen
                              DK-2900 HELLERUP
                             www.ds-norden.com