Interim report – first half-year 2014
Attached please find the full report as PDF file.
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Announcement no. 34
13 August 2014
Interim report – first half-year 2014
Today, the Board of Directors approved the interim report for the first half-year of 2014. The full report is attached as PDF file and contains the following highlights:
• EBITDA Q2 2014 USD -7 million (Q2 2013: USD 4 million)
• Results for the period H1 2014: USD -68 million (H1 2013: USD -34 million), which is unsatisfactory
• The weak dry cargo market continued
• Dry Cargo earnings 1% above the average 1-year T/C rates and 57% above Baltic Exchange spot rates
• Disappointing tanker market
• Market value of owned vessels USD 94 million above carrying amounts
• Strategy adjusted to the unsatisfactory market development:
- Activity level reduced by fewer operated vessels
- No further investments in the second quarter of 2014
• Some improvement in rates towards the end of the year is expected in both segments
• Expectations for 2014 EBITDA are adjusted downwards to USD -60 to 0 million (USD -40 to 60 million)
Interim CEO Klaus Nyborg in comment:
”The second quarter was more challenging than expected at the beginning of the year, and the 2014 markets have not yet met the expectations of a gradual improvement – neither within dry cargo nor tankers. But despite a significant worsening in the dry cargo market in the second quarter, NORDEN improved its Dry Cargo results compared to the first quarter. At the same time, NORDEN has taken advantage of the flexibility of the business model and reduced the fleet. The market rates are still expected to improve towards the end of the year but not to such an extent that we can maintain our previous expectations for the results for the year. Based on this, NORDEN makes a downward adjustment of its expectations to an EBITDA of USD -60 to 0 million.”
A telephone conference will be held today at 3:30 p.m. (CET) where interim CEO Klaus Nyborg, 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 www.ds-norden.com where the accompanying presentation is also available.
Further information: CFO Michael Tønnes Jørgensen and Executive Vice President Martin Badsted, tel. +45 3315 0451.
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DAMPSKIBSSELSKABET NORDEN A/S, 52, STRANDVEJEN, DK-2900 HELLERUP, CVR NO. 67758919