Interim report - first quarter 2011

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Attached please find the full report as PDF file.

 

Dampskibsselskabet NORDEN A/S

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Announcement no. 24

12 May 2011

Interim report – first quarter 2011

Today, the Board of Directors approved the interim report for the first quarter of 2011. The full report is attached as PDF file and contains the following highlights:

Key figures and ratios (USD million)

                                  1st quarter 2011

EBITDA

Group                                               48

EBITDA

Dry Cargo                                        44

Tankers                                             7

EBIT

Group                                               30

Theoretical NAV

DKK per share                               275

Coverage 2011

Dry Cargo                                      86%

Tankers                                         37%

Outlook 2011

EBITDA                                   135-175

EBIT                                            55-95

Highlights:

For the first quarter, NORDEN’s operating earnings (EBITDA) were USD 48 million compared to USD 39 million for the fourth quarter of 2010 and USD 79 million for the same period last year, which was affected by large non-recurring income.

In the Dry Cargo Department, EBITDA was USD 44 million, whereas the Tanker Department generated an EBITDA of USD 7 million.

For the first quarter, the profit from operations (EBIT) was USD 30 million (USD 69 million). Net profit increased after fair value adjustments of hedging instruments to USD 69 million (USD 63 million).

Theoretical Net Asset Value was DKK 275 per share against DKK 308 per share at the beginning of the year.

The Dry Cargo Department continues to have a high degree of coverage for 2011 and had, at the end of the quarter, only 4,000 open ship days for the rest of the year. The Tanker Department has 6,500 open ship days for the rest of 2011.

NORDEN maintains its expectations of an EBITDA of USD 135-175 million and an EBIT of USD 55-95 million.

President and CEO Carsten Mortensen says in a comment: "The dry cargo market in the first quarter was exactly as difficult as one could have feared revealing a 55% drop in spot rates. High coverage secured NORDEN reasonable operating earnings in Dry Cargo, and we improved the results in Tankers, where the market proved better than expected. All in all, we have had a reasonable start to the year, but this does not change the fact that 2011 is still expected to become a challenging year, and we have positioned the Company accordingly with high coverage in Dry Cargo."

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