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