Interim report - first quarter 2010
Attached please find the full report as PDF file.
Dampskibsselskabet NORDEN A/S
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NASDAQ OMX Copenhagen A/S Announcement no. 17
Nikolaj Plads 6 19 May 2010
1067 Copenhagen K
Interim report - first quarter 2010
Today, the Board of Directors approved the interim report for the first quarter
of 2010. The full report is attached as PDF file and contains the following
highlights:
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| Key figures and ratios | Highlights: |
| (USDm) | |
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| EBITDA | Q1 2010 | Q1 2009 |
| Group | 79 | 15 |
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| | NORDEN had a good start to the year with an |
| | increase in operating profit (EBITDA) of 425% |
| | compared to the same period last year. The |
| | profit is positively affected by 2 previously |
| | announced non-recurring income items of a total |
| | of USD 37 million. Excluding these non-recurring |
| | income items, the operating profit increased by |
| | 180%. |
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| EBITDA | Q1 2010 | Q1 2009 |
| Dry Cargo | 81 | 9 |
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| | The Dry Cargo Department increased its EBITDA |
| | based on high coverage at attractive rates. |
| | Furthermore, the department was well positioned |
| | in the market with the majority of open ship |
| | days in the small vessel types where the spot |
| | rates increased. The market was robust. |
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| EBITDA | Q1 2010 | Q1 2009 |
| Tanker | 1 | 9 |
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| | The Tanker Department achieved a small operating |
| | profit in a market which was still challenging, |
| | but turned out better than expected, |
| | because the cold winter on the northern |
| | hemisphere increased demand. |
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| EBIT | Q1 2010 | Q1 2009 |
| Group | 69 | 22 |
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| | Sale of vessels generated a loss of USD |
| | 1 million (profit of USD 16 million), whereas |
| | depreciation increased as a result of a larger |
| | number of owned vessels. Therefore, EBIT did not |
| | increase to the same extent as EBITDA, but, |
| | however, increased by 214%. |
| | |
| | The profit for the period was USD 63 million |
| | (USD 73 million). This includes fair value |
| | adjustments of certain hedging instruments of |
| | USD -1 million (USD 55 million). |
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| Theoretical NAV | Q1 2010 | Q1 2009 |
| DKK per share | 303 | 292 |
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| | NORDEN has purchased 5 product tankers and is |
| | searching the market for new opportunities. In |
| | Dry Cargo, the portfolio has been optimised by |
| | entering into new sales agreements for 2 vessels |
| | during the quarter and 4 vessels after the end |
| | of the quarter. The market values of the |
| | Company's owned vessels and newbuilding orders |
| | at 31 March 2010 amounted to USD 1,562 million, |
| | and the value of the Company's charter parties |
| | with purchase and extension option is estimated |
| | to be USD 493 million. Thus, the total |
| | theoretical NAV was DKK 303 per share against |
| | DKK 268 at the end of 2009. |
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| Coverage 2010 | |
| Dry Cargo | 81% |
| Tanker | 50% |
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| | NORDEN has taken advantage of the good market in |
| | order to increase coverage in Dry Cargo. Thus, |
| | coverage in mid-May is 81% for 2010 (65% at the |
| | turn of the year) and 48% for 2011 (33% at the |
| | turn of the year). In Tankers, coverage has been |
| | increased to 50% for 2010 and 27% for 2011 |
| | against 41% and 20% at the turn of the year, |
| | respectively, through a number of agreements to |
| | charter out vessels. |
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| Outlook 2010 | |
| EBITDA | 170-220 |
| EBIT | 155-205 |
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| | Based on the results in the first quarter and |
| | the good coverage for the rest of the year, |
| | NORDEN raises its expectations in both Dry Cargo |
| | and Tankers to an EBITDA of USD 200-230 million |
| | and USD -20-0 million, respectively,from |
| | USD 190-220 million and USD -25 to-5 million, |
| | respectively. Consequently, the Group's |
| | EBITDA is expected to be USD 170-220 million |
| | (previously USD 155-205 million), whereas the |
| | Group's EBIT is expected to be USD 155-205 |
| | million (previously USD 135-185 million). |
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A telephone conference will be held today at 15:30 hours (CET) where CEO
Carsten Mortensen, CFO Michael Tønnes Jørgensen and Senior Vice President
Martin Badsted will comment on the report. By 15:25 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 be followed live at the website www.ds-norden.com where the accompanying
presentation is also available.
Further information: CEO Carsten Mortensen, tel. +45 3315 0451.
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Dampskibsselskabet NORDEN A/S
52, Strandvejen
DK-2900 HELLERUP
CVR no. 67758919
www.ds-norden.com
