TORM -- Third Quarter Report 2009
COPENHAGEN, Denmark, Nov 18, 2009 (GlobeNewswire via COMTEX) -- By Staff
Company: D/S Torm A/S (TRMD)
"Profit for third quarter 2009 is in line with expectations and better than the second quarter. Despite the continued low freight rates for product tankers, we are satisfied with TORM's success in securing earnings above average market levels and at the same time deliver the planned cost reductions. We see, however, no signs of immediate market recovery, but our long-term strategic focus on the product tanker market remains," states CEO Mikael Skov.
* Profit before tax for the first nine months of 2009 was USD 11 million, in line with the latest full-year forecast for 2009. * Profit before tax for the third quarter was USD 4 million, including a positive impact of USD 21 million from the sale of two bulk carriers. As announced earlier, the vessels were sold during the second quarter, but the profit was recognised in the third quarter in which delivery took place. * The third quarter was negatively impacted by non-cash mark-to-market adjustments of USD 7 million, with USD 5 million on financial instruments and USD 2 million on FFA/bunker derivatives. * In the third quarter, product tanker rates remained at the low levels seen at the end of the second quarter. The market is still suffering from the negative impact of low global oil demand and the addition of new tonnage. However, on routes to and from Asia, rates picked up considerably towards the end of the quarter, benefiting TORM's LR1 and LR2 vessels. * Third quarter spot earnings in TORM's MR Pool were USD/day 12,580, which was higher than the average rate levels seen on the main routes in the MR market. In the negative market conditions, the pools focused on optimising the transport patterns of the global fleet and its access to cargo contracts. This resulted in more effective utilisation of the fleet and, consequently, higher earnings. * Bulk Panamax rates fell back in mid third quarter, but regained some ground toward the end of the quarter. Due to TORM's high coverage of earning days, the developments in bulk rates had limited impact on TORM's earnings. * TORM's efficiency improvement programme -- Greater Efficiency Power -- had a favourable effect on performance in the third quarter as vessel operating costs per day dropped by an average of approximately 12% year-on-year across the fleet. Furthermore, the administration expenses have been reduced by 21% year-on-year. The efficiency improvement programme will, as planned, produce annual cost savings of USD 40-60 million from 2010. * On a quarterly basis, TORM calculates the long-term earnings potential of its fleet based on discounted future cash flows. The value of the fleet thus calculated supports the book values. * At 30 September 2009, equity amounted to USD 1,274 million, equivalent to USD 18.4 per share (DKK 93.4 per share), excluding treasury shares, giving TORM an equity ratio of 38%. * TORM's unutilised loan facilities and cash totalled approximately USD 400 million at the end of the third quarter. Net interest- bearing debt totalled USD 1,682 million at 30 September 2009. Around 70% of the debt is due in 2013 or later. * At 30 September 2009, TORM had covered 49% of the remaining earning days for 2009 in the Tanker Division at USD/day 19,227 and 85% of the remaining earning days in the Bulk Division at USD/day 17,050. For 2010, coverage at 30 September 2009 was 24% at USD/day 20,033 in the Tanker Division and 46% at USD/day 16,650 in the Bulk Division. * TORM maintains its forecast of a profit before tax of around break-even for 2009.
Teleconference
A teleconference and webcast (www.torm.com) will take place today, at 15:00 Copenhagen time (CET), see details below.
Key figures
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Q1-Q3 Q1-Q3
Million USD Q3 2009 Q3 2008 2009 2008 2008
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Income statement
Net revenue 208.8 336.6 661.2 878.2 1.183.6
Time charter equivalent
earnings (TCE) 149.4 244.2 486.7 680.2 905.9
Gross profit 54.4 152.3 190.8 409.3 537.8
EBITDA 59.2 150.9 170.5 432.7 572.3
Operating profit 24.2 119.6 70.2 339.6 446.3
Profit before tax 4.4 91.3 11.1 289.8 360.1
Net profit 2.1 90.8 8.1 288.4 361.4
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Balance sheet
Total assets 3,360.1 3,242.5 3,360.1 3,242.5 3,317.4
Equity 1,274.3 1,268.5 1,274.3 1,268.5 1,278.9
Total liabilities 2,085.8 1,974.0 2,085.8 1,974.0 2,038.5
Invested capital 2,947.6 2,833.3 2,947.6 2,833.3 2,822.4
Net interest bearing
debt 1,681.9 1,574.7 1,681.9 1,574.7 1,549.9
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Cash flow
From operating
activities 22.2 111.2 95.2 264.1 384.7
From investing
activities -34.2 3.4 -178.5 -225.2 -262.4
Thereof investment
in tangible fixed
assets -87.1 -112.6 -261.3 -293.7 -377.8
From financing activities 95.7 -59.5 111.3 -10.5 -59.0
Net cash flow 83.7 55.1 28.0 28.4 63.3
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Key financial figures
Margins:
TCE 71.6% 72.5% 73.6% 77.5% 76.5%
Gross profit 26.1% 45.2% 28.9% 46.6% 45.4%
EBITDA 28.4% 44.8% 25.8% 49.3% 48.3%
Operating profit 11.6% 35.5% 10.6% 38.7% 37.7%
Return on Equity
(RoE) (p.a.)*) -3.5% 26.7% 0.0% 30.9% 30.6%
Return on Invested
Capital (RoIC)(p.a.)**) 1.2% 15.6% 2.6% 15.8% 16.4%
Equity ratio 37.9% 39.1% 37.9% 39.1% 38.6%
Exchange rate USD/DKK,
end of period 5.08 5.22 5.08 5.22 5.28
Exchange rate USD/DKK,
average 5.21 4.97 5.47 4.91 5.09
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Share related key
figures
Earnings per share,
EPS USD 0.0 1.3 0.1 4.2 5.2
Diluted earnings per
share, DEPS USD 0.0 1.3 0.1 4.2 5.2
Cash flow per share,
CFPS USD 0.3 1.6 1.4 3.8 5.6
Share price, end of
period
(per share of
DKK 5 each) DKK 51.6 126.2 51.6 126.2 55.5
Number of shares,
end of period Mill. 72.8 72.8 72.8 72.8 72.8
Number of shares
(excl. treasury
shares), average Mill. 69.2 69.2 69.2 69.2 69.2
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*) The gain from sale of vessels and the compensation for early
returns of four Panamax bulk carriers and the mark-to-market
adjustments of financial instruments is not annualized when
calculating the Return on Equity.
**) The gain from sale of vessels and the compensation for early
returns of four Panamax bulk carriers is not annualized when
calculating the Return on Invested Capital.
Profit by division
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Mio. USD Q3 2009
Tanker Bulk Not
Division Division Allocated Total
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Revenue 185.3 23.5 0.0 208.8
Port expenses, bunkers and
commissions -55.1 -1.0 0.0 -56.1
Freight and bunkers
derivatives -3.3 0.0 0.0 -3.3
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Time charter equivalent
earnings 126.9 22.5 0.0 149.4
Charter hire -42.1 -14.2 0.0 -56.3
Operating expenses -36.8 -1.9 0.0 -38.7
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Gross Profit 48.0 6.4 0.0 54.4
Profit from sale of vessels 0.0 20.7 0.0 20.7
Administrative expenses -16.6 -1.3 0.0 -17.9
Other Operating income 1.5 0.0 0.0 1.5
Share of results of jointly
controlled entities* 0.7 0.0 -0.2 0.5
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EBITDA 33.6 25.8 -0.2 59.2
Depreciation and impairment
losses -33.7 -1.3 0.0 -35.0
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Operating profit -0.1 24.5 -0.2 24.2
Financial items, net -- -- -19.8 -19.8
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Profit/(Loss) before tax -- -- -20.0 4.4
Tax -- -- -2.3 -2.3
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Net profit -- -- -22.3 2.1
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Q1-Q3 2009
Tanker Bulk Not
Division Division Allocated Total
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Revenue 568.3 92.9 0.0 661.2
Port expenses, bunkers and
commissions -159.5 -3.5 0.0 -163.0
Freight and bunkers
derivatives -11.5 0.0 0.0 -11.5
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Time charter equivalent
earnings 397.3 89.4 0.0 486.7
Charter hire -121.6 -43.9 0.0 -165.5
Operating expenses -121.2 -9.2 0.0 -130.4
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Gross Profit 154.5 36.3 0.0 190.8
Profit from sale of vessels 0.0 33.2 0.0 33.2
Administrative expenses -55.3 -5.2 0.0 -60.5
Other Operating income 6.3 0.0 0.0 6.3
Share of results of jointly
controlled entities* 2.4 0.0 -1.7 0.7
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EBITDA 107.9 64.3 -1.7 170.5
Depreciation and impairment
losses -94.6 -5.7 0.0 -100.3
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Operating profit 13.3 58.6 -1.7 70.2
Financial items, net -- -- -59.1 -59.1
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Profit/(Loss) before tax -- -- -60.8 11.1
Tax -- -- -3.0 -3.0
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Net profit -- -- -63.8 8.1
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*) The activity that TORM owns in a 50/50 joint venture with Teekay
and the 50% ownership of FR8 Holding Pte. Ltd. is included in
"Not-allocated"
Tanker Division
The Tanker Division's EBITDA for the third quarter of 2009 was USD 34 million.
In the third quarter, product tanker rates remained at the low level seen at the end of the second quarter, and the market is still suffering from the negative impacts of low global demand for oil and the addition of new tonnage. However, toward the end of the third quarter, rates rose significantly for the large vessels, LR1 and LR2, driven by a demand for naphtha in the Far East and increased exports from new refineries in the East. At the end of September, spot rates were well over USD/day 20,000 for both LR1 and LR2 vessels, relative to a level of just over USD/day 10,000 at the end of the second quarter.
MR rates were low throughout the quarter, primarily as a result of limited US demand for gasoline. Third quarter spot earnings in TORM's MR Pool were USD/day 12,580, which was higher than the average rate levels seen on the main routes in the MR market. In the negative market conditions, the pools focused on optimising the transport patterns of the global fleet and its access to cargo contracts. This resulted in more effective utilisation of the fleet and, consequently, higher earnings.
The tanker market was affected by the following main factors in the third quarter:
Positive impact:
* Use of LR1 and LR2 vessels as floating storage facilities and slow steaming reduced the supply of available tonnage. The vessels mainly stored gasoil off the coasts of the EU and West Africa * Increased exports from new refineries in the East * Higher demand for naphtha in the Far East
Negative impact:
* Continued low demand for gasoline in the USA * Delivery of a large number of newbuildings * High fuel costs * Lower utilisation of refinery capacity squeezed the demand for crude oil transports and, consequently, the earnings of some of the LR2 vessels
In the third quarter of 2009, the Tanker Division achieved freight rates which, relative to the third quarter of 2008, were 64% lower for the LR2 segment, 30% lower for the LR1 segment, 42% lower for the MR segment and 8% lower for the SR segment.
The efficiency improvement programme, Greater Efficiency Power, produced an average cost reduction per ship day of 11% relative to the third quarter of 2008.
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Tanker Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Change 12
Division Q3 08 month
- Q3 09 avg.
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LR2 (Aframax,
90-110,000
DWT)
Available
earning days 970 1,104 1,167 1,179 1,190 23%
TCE per
earning day
from the
LR2 Pool 45,267 37,009 24,192 17,145 18,401 -59%
TCE per
earning
day1) 48,421 31,862 21,977 15,785 17,406 -64% 21,583
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Operating
days 963 1,069 1,080 1,092 1,104 15%
Operating
expenses per
operating
day2) 7,319 8,564 7,507 7,556 6,496 -11% 7,522
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LR1
(Panamax
75-85,000
DWT)
Available
earning days 1,804 2,009 1,864 1,756 1,835 2%
TCE per
earning
day from
the LR1 Pool 34,700 35,140 22,503 15,577 15,036 -57%
TCE per
earning day1) 23,648 23,217 21,755 18,491 16,514 -30% 23,301
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Operating days 828 828 810 819 828 1%
Operating
expenses per
operating
day2) 7,798 7,478 7,852 7,142 6,706 -14% 7,292
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MR (45,000 DWT)
Available
earning days 2,668 2,796 3,174 3,344 3,602 35%
TCE per
earning day
from the
MR Pool 29,102 22,282 20,201 14,712 14,974 -49%
TCE per
earning
day1) 26,458 22,298 19,802 15,363 15,349 -42% 17,951
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Operating
days 2,484 2,400 2,497 2,548 2,707 11%
Operating
expenses per
operating
day2) 7,609 7,653 8,227 7,458 6,621 -13% 7,464
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SR (35,000
DWT)
Available
earning days 1,100 1,102 1,145 1,135 1,160 5%
TCE per
earning day1) 20,078 22,338 20,963 17,483 18,378 -8% 19,767
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Operating days 920 920 969 1,001 1,012 10%
Operating
expenses per
operating
day2) 6,193 6,633 7,662 6,600 6,105 -1% 6,743
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1) TCE = Time Charter Equivalent Earnings = Gross freight income less
bunker, commissions and port expenses.
2) Operating expenses are related to owned vessels.
Bulk Division
EBITDA for the Bulk Division for the third quarter of 2009 was USD 26 million. USD 21 million of this was attributable to the sale of TORM Marta and TORM Tina. The vessels were sold during the second quarter, but the profit was recognised in the third quarter in which delivery took place.
Bulk Panamax rates fell back in mid third quarter, but regained some ground toward the end of the quarter, and their third-quarter performance was thus relatively better than that of the larger Capesize vessels. Chinese coal and iron ore imports remain the most significant driver of bulk rates.
Going into the quarter, TORM's coverage of earning days was high, and therefore the spot rate developments had limited impact on Bulk Division earnings.
The bulk market was affected by the following main factors in the third quarter:
Positive impact:
* Continued extensive Chinese coal and iron ore imports, which reached a new high during the third quarter * During the quarter, the number of waiting days rose to its highest level in 2009, but subsequently fell at the end of the quarter * Higher steel production, principally in China, but also to some extent in Europe and Japan
Negative impact:
* Delivery of a large number of newbuildings * Slowdown in the phasing out of old vessels due to the higher freight rates
The Bulk Division's earnings per day were 64% lower in the third quarter of 2009 than in the same quarter of 2008.
The efficiency improvement programme, Greater Efficiency Power, produced an average cost reduction per ship day of 28% relative to the third quarter of 2008.
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Bulk Division Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Change 12
Q3 08 month
- Q3 09 avg.
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Panamax (60-80,000 DWT)
Available
earning days 1,421 1,466 1,458 1,496 1,255 -12%
TCE per
earning day1) 49,888 38,958 13,929 13,756 17,968 -64% 21,242
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Operating
days 552 600 622 636 392 -29%
Operating
expenses per
operating
day2) 6,261 5,352 6,798 5,106 4,477 -28% 5,530
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1) TCE = Time Charter Equivalent Earnings = Gross freight income less
bunker, commissions and port expenses.
2) Operating expenses are related to owned vessels.
Other activities
Other (non-allocated) activities are profits on investments in joint ventures of USD 0 million, financial expenses of USD 20 million and tax of USD 2 million.
Fleet development
In the third quarter, TORM took delivery of two MR newbuildings and delivered the two sold Panamax bulk carriers TORM Marta and TORM Tina to their new owners. At the end of the quarter, TORM's fleet of owned vessels comprised 63 tankers and four bulk carriers. In addition to these, TORM had 25 tankers and ten bulk carriers on time charter. Additional 37 tankers were either in pools or under commercial management.
Planned fleet changes
No vessels were contracted in the third quarter of 2009, and at the end of the quarter the order book thus comprised 12 MR vessels and four Kamsarmax vessels. The remaining Capex relating to the order book amounted to USD 483 million.
Results
Third quarter 2009
The gross profit for the third quarter of 2009 was USD 54 million, against USD 152 million for the corresponding quarter of 2008. The administration expenses were USD 17.9 million, against USD 22.6 million for the third quarter of 2008, corresponding to a reduction of 21%. Profit before depreciation (EBITDA) for the period was USD 59 million, against USD 151 million for the third quarter of 2008. The decline in gross profit and EBITDA was due to significantly lower freight rates for both tankers and bulk carriers.
Depreciation was USD 35 million during the third quarter of 2009.
An operating profit of USD 24 million was posted for the third quarter of 2009, against USD 120 million for the same quarter of 2008. The Tanker and Bulk Divisions contributed profits of USD 0 million and USD 25 million, respectively.
In the third quarter, there was a negative effect from non-cash mark-to-market adjustments of USD 7 million, with USD 5 million on financial instruments and USD 2 million on FFA/bunker derivatives.
In the third quarter of 2009, financials amounted to an expense of USD 20 million, against an expense of USD 28 million in the same quarter of 2008.
A profit after tax of USD 2 million was posted in the third quarter of 2009, against USD 91 million in the third quarter of 2008.
Assets
Total assets rose from USD 3,256 million to USD 3,360 million in the third quarter of 2009.
On a quarterly basis, TORM calculates the long-term earnings potential of its fleet based on discounted future cash flows. The value of the fleet thus calculated supports the book values. In addition, TORM receives quarterly valuations of its fleet's market value from three internationally acknowledged shipbrokers. Based on the broker valuations, the market value of TORM's fleet was below book value at 30 September 2009. However, as the market for product tankers is currently illiquid, the broker valuations are subject to significant uncertainty.
Liabilities
During the third quarter of 2009, the net interest-bearing debt rose from USD 1,670 million to USD 1,682 million. The item mainly comprised net borrowing in connection with the delivery of vessels and positive cash earnings of the period. Around 70% of the debt is due in 2013 or later.
Total equity
In the third quarter of 2009, equity rose from USD 1,270 million to USD 1,274 million, which is principally the result of earnings during the period. Equity as a percentage of total assets dropped from 39% at 30 June 2009 to 38% at 30 September 2009.
At 30 June 2009, TORM held 3,556,364 treasury shares, corresponding to 4.9% of the Company's share capital, which was unchanged from 30 June 2009.
Liquidity
TORM's unutilised loan facilities and cash totalled approximately USD 400 million at the end of the third quarter.
Outlook
TORM's forecast for 2009 of a profit before tax of around break-even, as stated in announcement no. 11 dated 12 August 2009, is unchanged.
Sensitivity
At 30 September 2009, TORM had covered 49% of the remaining earning days for 2009 in the Tanker Division at USD/day 19,227 and 85% of the remaining earning days in the Bulk Division at USD/day 17,050. For 2010, coverage was 24% at USD/day 20,033 in the Tanker Division and 46% at USD/day 16,650 in the Bulk Division.
Safe Harbor
Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our Forward-looking current views with respect to future events and financial performance and may include statements concerning plans, Statements objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, Management's examination of historical operating trends, data contained in our records and other data available from third parties. Although TORM believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, TORM cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.
Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward looking statements include the strength of world economies and currencies, changes in charter hire rates and vessel values, changes in demand for "tonne miles" of oil carried by oil tankers, the effect of changes in OPEC's petroleum production levels and worldwide oil consumption and storage, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled dry-docking, changes in TORM's operating expenses, including bunker prices, dry-docking and insurance costs, changes in governmental rules and regulations including requirements for double hull tankers or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists. Risks and uncertainties are further described in reports filed by TORM with the US Securities and Exchange Commission, including the TORM Annual Report on Form 20-F and its reports on Form 6-K.
Forward looking statements are based on management's current evaluation, and TORM is only under obligation to update and change the listed expectations to the extent required by law.
The TORM share
The price of a TORM share was DKK 51.5 at 30 September 2009, against DKK 54 at the beginning of the third quarter, equivalent to a decrease of DKK 3.5 (6%).
Accounting policies
This interim report for the third quarter of 2009 has been prepared in accordance with IAS 34 "Interim financial reporting" as adopted by the EU and additional Danish regulations governing the presentation of interim reports by listed companies.
Except for the instances mentioned below, the interim report has been prepared using the same accounting policies as for the Annual Report for 2008. The accounting policies are described in more detail in the Annual Report 2008.
As from 1 January 2009, TORM has implemented the following new or amended standards and interpretations: Amendment to IAS 1 "Presentation of Financial Statements", amendment to IAS 23 "Borrowing Costs", minor changes from Improvements to IFRSs, IFRIC 12 "Service Concession Agreements" and IFRIC 13 "Customer Loyalty Programmes." The new standards and interpretations have not affected recognition and measurement in TORM's interim report for the third quarter of 2009. The presentation of the amendments to IAS 1 has changed the presentation in the interim report as Comprehensive income is presented in a separate statement. Comprehensive income was previously included in the statement of changes in equity.
The interim report for the third quarter of 2009 is unaudited, in line with the normal practice.
Information
Teleconference
TORM will host a telephone conference for financial analysts and investors on 18 November 2009 at 15:00 Copenhagen time (CET), reviewing the interim report for the third quarter of 2009. The conference call will be hosted by Mikael Skov, CEO, and Roland M. Andersen, CFO, and will be conducted in English.
To participate, please call 10 minutes before the conference on tel.: +45 3271 4607 (from Europe) or +1 887 491 0064 (from the USA). The teleconference will also be webcast via TORM's website www.torm.com. The presentation material can be downloaded from the website.
Next reporting
TORM's Annual Report 2009 will be released on 11 March 2010.
Statement by the Board of Directors and Management on the Interim Report
The Board of Directors and Management have considered and approved the interim report for the period 1 January-30 September 2009.
The interim report, which is unaudited, has been prepared in accordance with the general Danish financial reporting requirements governing listed companies, including the measurement and recognition provisions in IFRS which are expected to be applicable for the Annual Report 2009.
We consider the accounting policies applied to be appropriate, and in our opinion, the interim report gives a true and fair view of the Group's assets, liabilities, financial position and of the results of operations and consolidated cash flows.
Copenhagen, 18 November 2009
Management Board of Directors
Mikael Skov, CEO Niels Erik Nielsen, Chairman
Roland M. Andersen, CFO Christian Frigast, Deputy Chairman
Peter Abildgaard
Lennart Arrias
Margrethe Bligaard
Bo Jagd
Jesper Jarlbaek
Gabriel Panayotides
Angelos Papoulias
Nicos Zouvelos
About TORM
TORM is one of the world's leading carriers of refined oil products as well as a significant participant in the dry bulk market. The Company runs a fleet of approximately 140 modern vessels, principally through a pooling cooperation with other respected shipping companies who share TORM's commitment to safety, environmental responsibility and customer service.
TORM was founded in 1889. The Company conducts business worldwide and is headquartered in Copenhagen, Denmark. TORM's shares are listed on the NASDAQ OMX Copenhagen (Copenhagen:TORM) and on NASDAQ in New York (Nasdaq:TRMD). For further information, please visit www.torm.com.
Income statement
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Million USD Q3 2009 Q3 2008 Q1-Q3 2009 Q1-Q3 2008 2008
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Revenue 208.8 336.6 661.2 878.2 1,183.6
Port expenses, bunkers
and commissions -56.1 -76.5 -163.0 -190.4 -264.1
Freight and bunkers
derivatives -3.3 -15.9 -11.5 -7.6 -13.6
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Time charter equivalent
earnings 149.4 244.2 486.7 680.2 905.9
Charter hire -56.3 -50.4 -165.5 -140.7 -193.8
Operating expenses -38.7 -41.5 -130.4 -130.2 -174.3
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Gross profit (Net
earnings from shipping
activities) 54.4 152.3 190.8 409.3 537.8
Profit from sale of
vessels 20.7 10.8 33.2 62.8 82.8
Administrative expenses -17.9 -22.6 -60.5 -62.1 -89.9
Other operating income 1.5 4.3 6.3 11.0 14.5
Share of results of
jointly controlled
entities 0.5 6.1 0.7 11.7 27.1
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EBITDA 59.2 150.9 170.5 432.7 572.3
Depreciation and
impairment losses -35.0 -31.3 -100.3 -93.1 -126.0
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Operating profit 24.2 119.6 70.2 339.6 446.3
Financial items -19.8 -28.3 -59.1 -49.8 -86.2
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Profit before tax 4.4 91.3 11.1 289.8 360.1
Tax -2.3 -0.5 -3.0 -1.4 1.3
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Net profit 2.1 90.8 8.1 288.4 361.4
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Earnings per share, EPS
Earnings per share, EPS
(USD) 0.0 1.3 0.1 4.2 5.2
Earnings per share, EPS
(DKK)*) 0.2 6.5 0.6 20.4 26.6
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*) The key figures have been translated from USD to DKK using the
average USD/DKK exchange change rate for the period in question.
Statement of comprehensive income
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Million USD Q3 2009 Q3 2008 Q1-Q3 2009 Q1-Q32008 2008
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Net profit for the
period 2.1 90.8 8.1 288.4 361.4
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Other comprehensive
income:
Exchange rate
adjustment arising on
translation of
entities using a
measurement currency
different from USD 0.0 -0.1 0.0 0.0 0.0
Fair value adjustment
on hedge instruments 0.5 -40.0 25.0 -42.6 -56.5
Value adjustment on
hedge instruments
transferred to income
statement 0.1 6.9 3.9 4.9 15.1
Value adjustment on
hedge instruments
transferred to assets 0.0 0.0 -1.2 0.0 --
Fair value adjustment
on available for sale
investments 1.5 -1.8 2.2 -3.9 -4.8
Transfer to income
statement on sale
of available for sale
investments 0.0 0.0 0 0.0 -2.6
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Other comprehensive
income after tax 2.1 -35.0 29.9 -41.6 -48.8
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Total comprehensive
income 4.2 55.8 38.0 246.8 312.6
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Income statement by quarter
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Million USD Q3 08 Q4 08 Q1 09 Q2 09 Q3 09
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Revenue 336.6 305.4 258.8 193.6 208.8
Port expenses, bunkers
and commissions -76.5 -73.7 -58.8 -48.1 -56.1
Freight and bunkers
derivatives -15.9 -6.0 -0.9 -7.3 -3.3
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Time charter
equivalent earnings 244.2 225.7 199.1 138.2 149.4
Charter hire -50.4 -53.1 -54.1 -55.1 -56.3
Operating expenses -41.5 -44.1 -47.5 -44.2 -38.7
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Gross profit (Net
earnings from shipping
activities) 152.3 128.5 97.5 38.9 54.4
Profit from sale of
vessels 10.8 20.0 0.0 12.5 20.7
Administrative
expenses -22.6 -27.8 -20.1 -22.5 -17.9
Other operating income 4.3 3.5 2.4 2.4 1.5
Share of results of
jointly controlled
entities 6.1 15.4 0.9 -0.7 0.5
---------------------------------------------------------------------
EBITDA 150.9 139.6 80.7 30.6 59.2
Depreciation and
impairment losses -31.3 -32.9 -31.8 -33.5 -35.0
---------------------------------------------------------------------
Operating profit 119.6 106.7 48.9 -2.9 24.2
Financial items -28.3 -36.4 -9.7 -29.6 -19.8
---------------------------------------------------------------------
Profit before tax 91.3 70.3 39.2 -32.5 4.4
Tax -0.5 2.7 0.4 -1.1 -2.3
---------------------------------------------------------------------
Net profit 90.8 73.0 39.6 -33.6 2.1
---------------------------------------------------------------------
Earnings per share, EPS*
Earnings per share,
EPS (USD) 1.3 1.1 0.6 -0.5 0.0
---------------------------------------------------------------------
*) The key figures have been translated from USD to DKK using the
average USD/DKK exchange change rate for the period in question.
Assets
---------------------------------------------------------------------
Million USD 30 Sep. 30 Sep. 31 Dec.
2009 2008 2008
---------------------------------------------------------------------
NON-CURRENT ASSETS
Intangible assets
Goodwill 89.2 89.2 89.2
Other intangible assets 2.3 3.1 2.4
---------------------------------------------------------------------
Total intangible assets 91.5 92.3 91.6
---------------------------------------------------------------------
Tangible fixed assets
Land and buildings 3.7 3.8 3.7
Vessels and capitalized dry-docking 2,421.4 2,240.6 2,325.9
Prepayments on vessels 293.0 308.1 272.7
Other plant and operating equipment 9.9 7.6 9.2
---------------------------------------------------------------------
Total tangible fixed assets 2,728.0 2,560.1 2,611.5
---------------------------------------------------------------------
Financial assets
Investment in jointly controlled
entities 132.3 113.8 130.5
Loans to jointly controlled entities 39.2 49.4 42.2
Other investments 8.6 9.9 6.4
Other financial assets 8.5 46.0 31.0
---------------------------------------------------------------------
Total financial assets 188.6 219.1 210.1
---------------------------------------------------------------------
TOTAL NON-CURRENT ASSETS 3,008.1 2,871.5 2,913.2
---------------------------------------------------------------------
CURRENT ASSETS
Bunkers 21.0 29.0 18.3
Freight receivables, etc. 62.8 127.6 120.2
Other receivables 52.3 56.7 72.0
Other financial assets 4.3 0.0 10.7
Prepayments 15.3 9.2 14.7
Cash and cash equivalents 196.3 133.4 168.3
---------------------------------------------------------------------
352.0 355.9 404.2
Assets held for sale 0.0 15.1 0.0
---------------------------------------------------------------------
TOTAL CURRENT ASSETS 352.0 371.0 404.2
---------------------------------------------------------------------
TOTAL ASSETS 3,360.1 3,242.5 3,317.4
---------------------------------------------------------------------
Equity and liabilities
---------------------------------------------------------------------
Million USD 30 Sep. 30 Sep. 31 Dec.
2009 2008 2008
---------------------------------------------------------------------
EQUITY
Common shares 61.1 61.1 61.1
Treasury shares -18.1 -18.1 -18.1
Revaluation reserves 2.1 3.4 -0.1
Retained profit 1,230.1 1,247.0 1,209.5
Proposed dividends 0.0 0.0 55.1
Hedging reserves -5.0 -29.0 -32.7
Translation reserves 4.1 4.1 4.1
---------------------------------------------------------------------
TOTAL EQUITY 1,274.3 1,268.5 1,278.9
---------------------------------------------------------------------
LIABILITIES
Non-current liabilities
Deferred tax liability 55.1 55.3 55.1
Mortgage debt and bank loans 1,702.2 1,514.6 1,505.8
Finance lease liabilities 32.1 0.0 0.0
Acquired liabilities related to
options on vessels 2.3 20.9 10.7
Acquired time charter contracts 0.1 6.5 3.9
---------------------------------------------------------------------
TOTAL NON-CURRENT LIABILITIES 1,791.8 1,597.3 1,575.5
---------------------------------------------------------------------
Current liabilities
Mortgage debt and bank loans 142.0 193.5 212.4
Finance lease liabilities 1.9 0.0 0.0
Trade payables 32.6 61.6 49.0
Current tax liabilities 11.2 15.2 9.7
Other liabilities 97.5 93.1 179.8
Acquired liabilities related to
options on vessels 1.8 0.0 0.0
Acquired time charter contracts 6.3 11.5 11.2
Deferred income 0.7 1.8 0.9
---------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 294.0 376.7 463.0
---------------------------------------------------------------------
TOTAL LIABILITIES 2,085.8 1,974.0 2,038.5
---------------------------------------------------------------------
TOTAL EQUITY AND LIABILITIES 3,360.1 3,242.5 3,317.4
---------------------------------------------------------------------
Equity 1 January - 30 September 2009
---------------------------------------------------------------------
Million USD Common Treasury Retained Proposed
shares shares profit dividends
---------------------------------------------------------------------
Equity at 1 January 2009 61.1 -18.1 1,209.5 55.1
---------------------------------------------------------------------
Changes in equity
Q1-Q3 2009:
Purchase treasury shares,
cost -- -- -- --
Disposal treasury shares,
cost -- -- -- --
Dividends paid -- -- -- -51.2
Dividends paid on
treasury shares -- -- 2.5 --
Exchange rate adjustment
on dividends paid -- -- 3.9 -3.9
Share-based compensation -- -- 6.1 --
Comprehensive income for
the period -- -- 8.1 --
---------------------------------------------------------------------
Total changes in equity
Q1-Q3 2009 0.0 0.0 20.6 -55.1
---------------------------------------------------------------------
Equity at 30 September 2009 61.1 -18.1 1,230.1 0.0
---------------------------------------------------------------------
---------------------------------------------------------------------
Revaluation Hedging Translation Total
reserves reserves reserves
---------------------------------------------------------------------
Equity at 1 January 2009 -0.1 -32.7 4.1 1,278.9
---------------------------------------------------------------------
Changes in equity
Q1-Q3 2009:
Purchase treasury shares,
cost -- -- -- 0.0
Disposal treasury shares,
cost -- -- -- 0.0
Dividends paid -- -- -- -51.2
Dividends paid on
treasury shares -- -- -- 2.5
Exchange rate adjustment
on dividends paid -- -- -- 0.0
Share-based compensation -- -- -- 6.1
Comprehensive income for
the period 2.2 27.7 0.0 38.0
---------------------------------------------------------------------
Total changes in equity
Q1-Q3 2009 2.2 27.7 0.0 -4.6
---------------------------------------------------------------------
Equity at 30 September 2009 2.1 -5.0 4.1 1,274.3
---------------------------------------------------------------------
Equity 1 January - 30 September 2008
---------------------------------------------------------------------
Million USD Common Treasury Retained Proposed
shares shares profit dividends
---------------------------------------------------------------------
Equity at 1 January 2008 61.1 -18.1 953.6 64.5
---------------------------------------------------------------------
Changes in equity Q1-Q3
2008:
Purchase treasury
shares, cost -- -- -- --
Disposal treasury
shares, cost -- -- -- --
Dividends paid -- -- -- -68.6
Dividends paid on
treasury shares -- -- 3.3 --
Exchange rate adjustment
on dividends paid -- -- -4.1 4.1
Share-based compensation -- -- 5.8 --
Comprehensive income for
the period -- -- 288.4 --
---------------------------------------------------------------------
Total changes in
equity Q1-Q3 2008 0.0 0.0 293.4 -64.5
---------------------------------------------------------------------
Equity at 30 September 2008 61.1 -18.1 1,247.0 0.0
---------------------------------------------------------------------
---------------------------------------------------------------------
Revaluation Hedging Translation Total
reserves reserves reserves
---------------------------------------------------------------------
Equity at 1 January 2008 7.3 8.7 4.1 1,081.2
---------------------------------------------------------------------
Changes in equity Q1-Q3
2008:
Purchase treasury
shares, cost -- -- -- 0.0
Disposal treasury
shares, cost -- -- -- 0.0
Dividends paid -- -- -- -68.6
Dividends paid on
treasury shares -- -- -- 3.3
Exchange rate adjustment
on dividends paid -- -- -- 0.0
Share-based compensation -- -- -- 5.8
Comprehensive income for
the period -3.9 -37.7 0.0 246.8
---------------------------------------------------------------------
Total changes in
equity Q1-Q3 2008 -3.9 -37.7 0.0 187.3
---------------------------------------------------------------------
Equity at 30 September 2008 3.4 -29.0 4.1 1,268.5
---------------------------------------------------------------------
Statement of cash flows
---------------------------------------------------------------------
Million USD Q3 Q3 Q1-Q3 Q1-Q3
2009 2008 2009 2008 2008
---------------------------------------------------------------------
Cash flow from
operating
activities
Operating profit 24,2 119,7 70,2 339,7 446,3
Adjustments:
Reversal of profit from
sale of vessels -20,7 -10,8 -33,2 -62,8 -82,8
Reversal of depreciation
and impairment losses 35,0 31,3 100,3 93,1 126,1
Reversal of share of
results of jointly
controlled entities -0,5 -6,1 -0,7 -11,7 -27,1
Reversal of other
non-cash movements -0,6 -0,8 4,7 -7,8 -7,8
Dividends received 0,0 0,0 0,0 1,4 1,3
Dividends received from
joint controlled
entities 0,0 1,5 2,8 3,0 3,9
Interest received and
exchange rate gains 0,1 3,7 4,3 16,2 13,4
Interest paid -14,4 -20,2 -44,1 -62,5 -84,3
Income taxes paid -0,1 0,4 -1,9 -1,2 -4,2
Change in inventories,
accounts receivables
and payables -0,8 -7,5 -7,2 -43,3 -0,1
---------------------------------------------------------------------
Net cash inflow/(outflow)
from operating
activities 22,2 111,2 95,2 264,1 384,7
---------------------------------------------------------------------
Cash flow from investing
activities
Investment in tangible
fixed assets -87,1 -112,6 -261,3 -293,7 -377,8
Investment in equity
interests and securities 0,0 0,0 0,0 -133,5 -133,9
Loans to jointly
controlled entities 0,5 64,0 2,9 64,0 69,6
Payment of liability
related to options on
vessels 0,0 -11,0 1,5 -11,0 -6,7
Acquisition of
enterprises
and activities 0,0 0,0 0,0 0,0 0,0
Sale of equity interests
and securities 0,0 0,0 0,0 17,4 17,4
Sale of non-current
assets 52,4 63,0 78,4 131,6 169,0
---------------------------------------------------------------------
Net cash inflow/(outflow)
from investing
activities -34,2 3,4 -178,5 -225,2 -262,4
---------------------------------------------------------------------
Cash flow from financing
activities
Borrowing, mortgage debt
and other financial
liabilities 110,5 0,0 373,9 1.007,4 1.020,7
Repayment/redemption,
mortgage debt -14,8 -59,5 -213,9 -952,6 -955,9
Dividends paid 0,0 0,0 -48,7 -65,3 -123,8
Purchase/disposals of
treasury shares 0,0 0,0 0,0 0,0 0,0
---------------------------------------------------------------------
Cash inflow/(outflow)
from financing
activities 95,7 -59,5 111,3 -10,5 -59,0
---------------------------------------------------------------------
Increase/(decrease) in
cash and cash
equivalents 83,7 55,1 28,0 28,4 63,3
Cash and cash
equivalents,
beginning balance 112,6 78,3 168,3 105,0 105,0
---------------------------------------------------------------------
Cash and cash
equivalents,
ending balance 196,3 133,4 196,3 133,4 168,3
---------------------------------------------------------------------
Statement of cash flows by quarter
---------------------------------------------------------------------
Million USD Q3 08 Q4 08 Q1 09 Q2 09 Q3 09
---------------------------------------------------------------------
Cash flow from
operating activities
Operating profit 119,7 106,6 48,9 -2,9 24,2
Adjustments:
Reversal of profit
from sale of
vessels -10,8 -20,0 0,0 -12,5 -20,7
Reversal of
depreciation and
impairment losses 31,3 33,0 31,8 33,5 35,0
Reversal of share
of results of
jointly controlled
entities -6,1 -15,4 -0,9 0,7 -0,5
Reversal of other
non-cash movements -0,8 0,0 -0,3 5,6 -0,6
Dividends received 0,0 -0,1 0,0 0,0 0,0
Dividends received
from joint
controlled
entities 1,5 0,9 0,7 2,1 0,0
Interest received
and exchange rate
gains 3,7 -2,8 1,8 2,4 0,1
Interest paid -20,2 -21,8 -17,6 -12,1 -14,4
Income taxes paid 0,4 -3,0 -1,7 -0,1 -0,1
Change in
inventories,
accounts
receivables
and payables -7,5 43,2 -1,5 -4,9 -0,8
---------------------------------------------------------------------
Net cash inflow/
(outflow) from
operating
activities 111,2 120,6 61,2 11,8 22,2
---------------------------------------------------------------------
Cash flow from
investing
activities
Investment in
tangible
fixed assets -112,6 -84,1 -129,5 -44,7 -87,1
Investment in
equity interests
and securities 0,0 -0,4 0,0 0,0 0,0
Loans to jointly
controlled entities 64,0 5,6 1,3 1,1 0,5
Payment of
liability related
to options on
vessels -11,0 4,3 1,5 0,0 0,0
Acquisition of
enterprises and
activities 0,0 0,0 0,0 0,0 0,0
Sale of equity
interests and
securities 0,0 0,0 0,0 0,0 0,0
Sale of non-
current assets 63,0 37,4 0,0 26,0 52,4
---------------------------------------------------------------------
Net cash inflow/
(outflow) from
investing
activities 3,4 -37,2 -126,7 -17,6 -34,2
---------------------------------------------------------------------
Cash flow from
financing activities
Borrowing, mortgage
debt and other
financial
liabilities 0,0 13,3 18,0 245,4 110,5
Repayment/
redemption,
mortgage debt -59,5 -3,3 -22,1 -177,0 -14,8
Dividends paid 0,0 -58,5 0,0 -48,7 0,0
Purchase/disposals
of treasury
shares 0,0 0,0 0,0 0,0 0,0
---------------------------------------------------------------------
Cash inflow/
(outflow) from
financing
activities -59,5 -48,5 -4,1 19,7 95,7
---------------------------------------------------------------------
Increase/(decrease)
in cash and cash
equivalents 55,1 34,9 -69,6 13,9 83,7
Cash and cash
equivalents,
beginning balance 78,3 133,4 168,3 98,7 112,6
---------------------------------------------------------------------
Cash and cash
equivalents,
ending balance 133,4 168,3 98,7 112,6 196,3
---------------------------------------------------------------------
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: TORM A/S
CONTACT: TORM A/S Mikael Skov, CEO Roland M. Andersen, CFO +45 39 17 92 00 Tuborg Havnevej 18 DK-2900 Hellerup, Denmark
Copyright (C) 2010 GlobeNewswire. All rights reserved
News Provided by COMTEX
Company: D/S Torm A/S (TRMD)
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