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Interim report – Third quarter of 2016

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Attached please find the full report as PDF file.

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Announcement no. 22

9 November 2016

Interim report – Third quarter of 2016

Today, the Board of Directors approved the interim report for the third quarter of 2016. The full report is attached as PDF file and contains the following highlights:
 

  • Adjusted result for the period Q3 2016: USD -12 million (Q3 2015: USD 18 million).
     
  • EBIT Q3 2016: USD -13 million (USD 21 million), of which vessel sales make up USD -6 million.
     
  • Dry Cargo: Increasing imports to China sustain a generally weak market. Adjusted result for the period Q3: USD -8 million (USD -14 million). Earnings 31% above market benchmark.
     
  • Tankers: Continued deterioration of the market. Adjusted result for the period Q3: USD -4 million (USD 32 million). Earnings 7% above benchmark.
     
  • Cash flows from operating activities Q3: USD -29 million (USD -3 million).
     
  • Cash and securities: USD 294 million (USD 359 million). Undrawn credit facilities of USD 285 million (USD 345 million).
     
  • Total net commitments decreased by USD 156 million to USD 752 million.
     
  • Ship values: Slightly upward trend in Dry Cargo over the quarter – drop in the Tanker segment. Total decrease of 2%.
     
  • In line with the strategy, operating activities will be increased significantly over the coming years.
     
  • Expectations for the Group’s adjusted results for the year are maintained at USD -60 to -20 million.
     

CEO Jan Rindbo in comment:

”Overall, the third quarter developed as expected and finishes, despite our efforts, with an unsatisfactory result as a consequence of market developments. Our early focus on increasing coverage in Tankers combined with the sale of tanker vessels have reduced our exposure to a severely hit tanker market, while in Dry Cargo we are preoccupied with getting the best out of the very poor market. In this connection, the ability to combine vessels with cargoes is a crucial element, and in line with the strategy Focus & Simplicity the Company will utilise its position in the market over the coming years to significantly increase its operating activities in Dry Cargo through increased use of short-term chartered vessels.”

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 3848 7513, overseas participants please dial in on +44 (0) 20 3427 1911 or +1 212 444 0412. 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.

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

 

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