Interim report - third quarter 2010
Attached please find the full report as PDF file.
Dampskibsselskabet NORDEN A/S
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Announcement no. 23
16 November 2010
Interim report - third quarter 2010
Today, the Board of Directors approved the interim report for the third quarter
of 2010. The full report is attached as PDF file and contains the following
highlights:
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| Key figures and ratios (USDm) | Highlights: |
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| | Q3 | 1/1-30/9 | |
| | 2010 | 2010 | |
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| EBITDA | | | For the third quarter, NORDEN's |
| Group | 22 | 201 | operating profit (EBITDA) was USD 22 |
| | | | million compared to USD 28 million for |
| | | | the same period in 2009. The operating |
| | | | profit for the first 9 months increased |
| | | | by 178% to USD 201 million against USD |
| | | | 72 million for the same period in 2009. |
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| EBITDA | | | The operating profit in the Dry Cargo |
| Dry Cargo | 27 | 209 | Department was USD 27 million. The |
| Tankers | -2 | 0 | result is adversely affected by period |
| | | | deferrals as a great number of recently |
| | | | chartered vessels performed |
| | | | repositioning voyages, resulting in |
| | | | costs in the third quarter, which, |
| | | | however, to some extent, are expected |
| | | | to be off-set by correspondingly higher |
| | | | earnings in the fourth quarter. |
| | | | |
| | | | The Tanker Department realised a minor |
| | | | loss of USD 2 million in the quarter in |
| | | | a very weak market. Expectations for |
| | | | Tankers remain unchanged. |
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| EBIT | | | For the third quarter, the primary |
| Group | 45 | 200 | operating profit (EBIT) was USD 45 |
| | | | million (USD 28 mio.) and year-to-date, |
| | | | EBIT increased by 110% to USD 200 |
| | | | million. The net profit was USD 53 |
| | | | million for the quarter (USD 37 |
| | | | million) and USD 199 million |
| | | | year-to-date (USD 169 million). |
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| Theoretical | | | Theoretical Net Asset Value was DKK 313 |
| NAV | | | per share against DKK 346 per share at |
| DKK per | | | the end of the second quarter. The |
| share | 313 | | development is due to the USD/DKK rate, |
| | | | which fell by 10% during the quarter. |
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| Coverage | 2010 | 2011 | During the quarter, the Dry Cargo |
| Dry Cargo | 87% | 70% | Department raised coverage by almost |
| Tankers | 47% | 29% | 14,000 ship days. This development has |
| | | | continued after the quarter, and thus, |
| | | | coverage had increased to 78% and 42% |
| | | | for 2011 and 2012 by mid-November. |
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| Outlook 2010 | | As a result of a significant decrease |
| EBITDA 220-250 | | in dry cargo freight rates in the |
| EBIT 210-240 | | fourth quarter and agreements on |
| | | long-term coverage, which move earnings |
| | | from the fourth quarter to the coming |
| | | years, NORDEN lowers its expectations |
| | | to an EBITDA of USD 220-250 million |
| | | (previously USD 240-270 million) and an |
| | | EBIT of USD 210-240 million (previously |
| | | USD 225-255 million). |
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| | President and CEO Carsten Mortensen |
| | says in a comment: "The downward |
| | adjustment is unfortunate - but |
| | explicable: The third quarter was |
| | affected by period deferrals, in the |
| | fourth quarter, we will be hit by lower |
| | rates on open ship days, and finally, |
| | we have chosen to increase coverage, |
| | thereby moving profit from the fourth |
| | quarter to the coming years. Yet, the |
| | overall picture remains unchanged: |
| | Earnings have increased significantly |
| | this year, and we expect an increase in |
| | EBITDA of 75-98% for the entire year |
| | compared to 2009. Looking forward, we |
| | have already covered 78% of the known |
| | ship days in Dry Cargo in 2011 and 42% |
| | in 2012." |
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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.
_______________________________________________________________________________
Dampskibsselskabet NORDEN A/S
52, Strandvejen
DK-2900 Hellerup
CVR no. 67758919
www.ds-norden.com
