Interim report – Second quarter and first half-year of 2017

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Attached please find the full report as PDF file.

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Announcement no. 7

17 August 2017

Interim report – Second quarter and first half-year of 2017

Today, the Board of Directors approved the interim report for the second quarter and first half-year of 2017. The full report in English is attached as PDF file and contains the following highlights:

  • Results

            Adjusted result for Q2 2017: USD -3 million (Q2 2016: USD -4 million)

            - Dry Cargo: USD -7 million (USD -11 million)

            - Tankers: USD 3 million (USD 7 million)

            Group EBIT Q2 2017: USD -3 million (USD -34 million)

  • Markets

            - Dry Cargo: Increase in year-on-year Chinese imports continues to support improving markets

            - Tankers: Deteriorating markets throughout the quarter

  • Performance

            NORDEN TCE vs. benchmark:

            - Dry Cargo: +28%

            - Tankers: +13%

  • Cover and capacity rest of year

            - Dry Cargo: 88% coverage. 2,229 open days for the rest of the year

            - Tankers: 22% coverage. 6,108 open days for the rest of the year

  • Vessel values

            - Dry Cargo: -3%

            - Tankers: Unchanged

  • Guidance

            Expectations for the adjusted results for the year are narrowed within the guidance previously announced to

            USD -20 to 20 million.

CEO Jan Rindbo in comment:

”In Dry Cargo, the gradual recovery in both market conditions and our earnings continues, although still at loss-making levels. Strategically we are building a strong platform for increased value generation in Dry Cargo through the split into 2 distinct dry cargo business units: Operator and Owner. In Tankers, NORDEN made the best of a very challenging market generating a profit and increasing the capacity at attractive cost levels. Combined with continued annual operational cost savings and highly skilled employees, NORDEN is thereby well-positioned towards improving markets in both dry cargo and tankers in the future.” 

A telephone conference will be held today at 3:30 p.m. (CET), where CEO Jan Rindbo and CFO Martin Badsted will comment on the report. It is requested that all participants have joined the meeting by latest 3:25 p.m. (CET) – Danish participants please dial in on +45 3271 1658, overseas participants please dial in on +44 (0)20 3427 1910 or +1 646 254 3366. The telephone conference will be shown live at www.ds-norden.com, where the accompanying presentation will also be available.

For further information: CEO Jan Rindbo, tel. +45 3315 0451.

 

Key figures and ratios for the group  

USD million 1/1-30/6
2017
1/1-30/6
2016
Change H1 2016-2017 1/1-31/12
2016
Income statement        
Revenue 839.7 608.0 38% 1,251.2
Costs -822.0 -584.3 41% -1,220.6
Earnings before depreciation, etc. (EBITDA) 17.7 23.7 -25% 30.6
Profit from the sale of vessels, etc. -0.2 -33.0 -99% -45.5
Depreciation and write-downs -20.9 -27.2 -23% -49.6
Earnings from operations (EBIT) -2.7 -35.2 -92% -64.5
Fair value adjustment of certain hedging instruments 0.0 22.5 - 34.5
Net financials 2.0 -5.1 - -12.3
Results before tax -0.7 -17.8 -96% -42.2
Results for the period -2.6 -19.4 -86% -45.6
Adjusted result for the period* -2.4 -8.9 -73% -34.6
Statement of financial position        
Non-current assets         756.4 841.9 -10% 767.1
Total assets 1,262.8 1,512.8 -17% 1,301.0
Equity 793.4 834.6 -5% 801.4
Liabilities 469.4 678.2 -31% 499.6
Invested capital 748.1 769.6 -3% 753.8
Net interest-bearing assets 45.3 65.0 -30% 47.6
Cash and securities 248.6 345.5 -28% 263.9
Cash flows        
From operating activities -19.1 -9.4 - -79.7
From investing activities 45.7 -5.3 - 102.1
  - hereof investments in property, equipment and vessels -12.8 -66.7 -81% -36.8
From financing activities -13.5 -19.0 -29% -85.3
Change in cash and cash equivalents for the period 13.1 -33.7 - -62.9
Financial and accounting ratios        
Share-related key figures and financial ratios:        
Number of shares of DKK 1 each (including treasury shares) 42,200,000 42,200,000 - 42,200,000
Number of shares of DKK 1 each (excluding treasury shares) 40,467,615 40,467,615 - 40,467,615
Number of treasury shares 1,732,385 1,732,385 - 1,732,385
Earnings per share (EPS)(DKK) -0.1 (0) -0.5 (-3) -87% -1.1 (-8)
Diluted earnings per share (diluted EPS) (DKK) -0.1 (0) -0.5 (-3) -87% -1.1 (-8)
Book value per share (excluding treasury shares) (DKK) 1) 19.6 (128) 20.6 (138) -5% 19.0 (134)
Share price at end of period (DKK) 118.3 93.1 27% 110.5
Price/book value (DKK) 1) 0.93 0.67 37% 0.8
         
Other key figures and financial ratios:        
EBITDA-ratio 2) -2.1% 3.9% -46% 2.4%
ROIC -0.7% -9.0% -92% -8.4%
ROE -0.7% -3.9% -83% -5.5%
Equity ratio 62.8% 55.2% -46% 61.6%
Total no. of ship days for the Group 43,873 38,759 13% 78,765
USD/DKK rate at end of period 651.56 669.64 -3% 705.28
Average USD/DKK rate 687.56 667.39 -3% 673.27
 
1) Converted at the USD/DKK rate at end of period.
2) The ratios were computed in accordance with ”Recommendations and Financial Ratios 2015” published by the Danish Society of Financial Analysts. However, ”Profits from the sale of vessels, etc.” has not been included in EBITDA.
* Adjusted result for the period was computed as "Results for the period" adjusted for "Profit from the sale of vessels, etc." and until 31/12-2016 "Fair value adjustment of certain hedging instruments".

 

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DAMPSKIBSSELSKABET NORDEN A/S, 52, STRANDVEJEN, DK-2900 HELLERUP, CVR NO. 67758919