NORDEN saves USD 60-70 million by cancelling 4 vessels

Attached please find below text as PDF file.


Dampskibsselskabet NORDEN A/S
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NASDAQ OMX Copenhagen A/S                                   Announcement no. 31
Nikolaj Plads 6                                               11 September 2009
1067 Copenhagen K


NORDEN saves USD 60-70 million by cancelling 4 vessels

NORDEN has entered into agreement to cancel - without costs - the long-term
chartering of 4 Post-Panamax (118,000 dwt.) newbuildings, which should have
been delivered in 2010 (Q2 and Q3) and 2011 (Q1 and Q3). The contracts have
been cancelled through mutual agreement with the counterparty. 

Originally, the vessels were chartered on agreement in June 2008 at an average
charter hire of USD 35,750 per day over a three-year period, and the average
fleet cost in Dry Cargo is therefore reduced by USD 1,000 per day over a
three-year period. At the current forward rates, the cancellation is estimated
to have a present value for NORDEN of USD 60-70 million. 

CEO Carsten Mortensen says the following about the cancellation: “On the basis
of the development in the world economy, I am extremely pleased that these
vessels will not be delivered. The cancellation of these vessels will further
strengthen our future cash flow and the competitiveness in Post-Panamax, which
is a vessel type that we are very focused on. We still have 4 owned and 4
long-term chartered Post-Panamax vessels which will be operated together with 8
other units. So we still have a significant market position. Our average cost
in the Post-Panamax vessel type will be more than halved without these 4
vessels.” 


                                      Kind regards,
                             Dampskibsselskabet NORDEN A/S

                                   Carsten Mortensen
                                    President & CEO


Contact at tel. +45 3315 0451: Carsten Mortensen, President & CEO, and Martin
Badsted, Senior Vice President. 

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                             Dampskibsselskabet NORDEN A/S
                                   52, Strandvejen
                                  DK-2900 HELLERUP
                                  CVR no. 67758919
                                 www.ds-norden.com