Interim report – first quarter 2013

Attached please find the full report as PDF file.

Dampskibsselskabet NORDEN A/S

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Announcement no. 14

15 May 2013

Interim report – first quarter 2013

Today, the Board of Directors approved the interim report for the first quarter of 2013. The full report is attached as PDF file and contains the following highlights:

NORDEN concluded the first quarter 2013 with operating earnings (EBITDA) of USD 10 million (USD 50 million). The earnings were generated in a dry cargo market which continues to be marked by excess capacity and very low rates whereas the rate level in Tankers was above expectations.

NORDEN's focus on investments in dry cargo vessels has resulted in NORDEN contracting or long-term chartering 13 fuel efficient dry cargo newbuildings in the period from October 2012 to the end of April 2013. Furthermore, the Company contracted 4 MR product tankers in the same period – also fuel efficient newbuildings. The total investments amount to USD 445 million in the form of direct investments and capitalised T/C liabilities.

As a result of lower earnings, EBIT constituted a loss of USD 7 million while results for the period were USD -11 million. After the previous year's massive drop in ship values, the curve has now leveled off, and the value of owned vessels, which were owned in the entire period, dropped by 1% during the quarter. The drop is on par with ordinary impairment of the vessels, which are written off over 20 years.

The Dry Cargo Department had a weak start to the year with an EBITDA of USD 1 million including non-recurring income of USD 9 million. Besides extremely difficult market conditions, EBITDA was negatively affected by positioning of vessels towards the South American grain season. This will, however, be counterbalanced by higher earnings in coming periods. Earnings in the Dry Cargo Department were on average 28% better than the 1-year T/C rates. After the end of the quarter, the Company’s cargo focus furthermore resulted in a new contract for 10 million tons of cargo in the period 2016-2020 at reasonable rate levels.

The Tanker Department generated operating earnings (EBITDA) of USD 11 million due to good spot earnings. However, this was to some extent counteracted by a lower number of ship days and higher daily running costs as a result of period deferrals and increased insurance premiums. The Tanker Department's earnings were on average 17% above the 1-year T/C rates.

At the end of the quarter, NORDEN's Net Asset Value (NAV) was calculated at DKK 220 per share against DKK 213 per share at the end of 2012, which corresponds to an increase of 3%.

The Dry Cargo Department continued to have high coverage of 77% of the ship days at a rate level of USD 10,800 per day at the end of the quarter. The Tanker Department's coverage increased to 30% during the period.

NORDEN maintains its expectations for the results for the year with a group EBITDA of USD 15-45 million.

President and CEO Carsten Mortensen in comment: "In the last couple of months, NORDEN has taken advantage of the attractive newbuilding prices to expand the newbuilding programme by a total of 17 fuel efficient vessels. The Company will thus be in a strong position when the markets become more balanced. Scrapping of dry cargo vessels is still at a high level with around 7.5 million dwt. in the first quarter, and we can be pleased that the Tanker Department has generated good earnings in an otherwise bleak first quarter. But as already announced, 2013 will be a very difficult year earnings-wise."

A telephone conference will be held today at 15:30 hours (CET) where CEO Carsten Mortensen, CFO Michael Tønnes Jørgensen and Executive Vice President Martin Badsted will comment on the report. By 15:25 hours (CET) at the latest, Danish participants should dial +45 3272 8018 while participants from abroad should dial +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: 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