FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of August, 2003
A/S STEAMSHIP COMPANY TORM
(Translation of registrant's name into English)
Marina Park
Sundkrogsgade 10
DK-2100 Copenhagen 0
Denmark
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
--- ---
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
--- ---
INFORMATION CONTAINED IN THIS FORM 6-K REPORT
Set forth herein as Exhibit 1 is a copy of Copenhagen Stock
Exchange Announcement No. 9-2003 issued by A/S STEAMSHIP COMPANY TORM (the
"Company") to The Copenhagen Stock Exchange on August 19, 2003
Exhibit 1
---------
TORM
COPENHAGEN STOCK EXCHANGE ANNOUNCEMENT NO. 9 - 2003 --------------------------
A/S Dampskibsselskabet TORM
Marine Park
Sundkrogsgade 10
DK-2100 Copenhagen O
Denmark
19 August 2003
TORM - Interim report first half 2003 - significant increase for TORM
o Profit after tax for first half 2003 was DKK 236 mill.
o The results are highly satisfactory - especially in view of the development
in the USD/DKK-exchange rate - and exceed the original forecast.
o Significant advance resulting from high freight rates and transportation
buyers' gradually increased focus and need for younger double-hulled tanker
vessels and the flexibility and experience TORM and its partners offer.
o As stated in announcement No. 8 to the Copenhagen Stock Exchange, dated 5
August 2003, expectations for the full year profit after tax was increased
to DKK 375-400 mill. including an unrealised gain of DKK 55 mill. in
respect of the Company's holding in Dampskibsselskabet `NORDEN' A/S
o Profit before depreciation (EBITDA) was DKK 259 mill. for the first half of
2003.
o Profit before financial items (EBIT) was DKK 173 mill. for the first half
of 2003.
o As part of the Company's strategy to focus on modern, quality vessels, the
Company took delivery during the period of two MR product tankers, sold a
1992-built MR product tanker and placed orders for two further LR2/Aframax
product tankers for delivery in 2006.
o The newbuilding program consists of six product tankers for delivery in
2003-06 with a total value of more than USD 220 mill. (app. DKK 1.4
billion).
o Conference call discussing the results, today 19 August 2003 at 17.00
Copenhagen time. The conference call will also be accessible via the
Internet (www.torm.dk). To participate in the call, please call 10 minutes
before the start of the conference call on tel.: +45 32 71 46 11 (from
Europe) or +1 334 323 6203 (from the US).
A/S Dampskibsselskabet TORM
Contact persons: Klaus Kjaerulff, CEO (tel.: +45 39 17 92 00)
Klaus Nyborg, CFO (tel.: +45 39 17 92 00)
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Key figures for the group Full year
DKK mill. H1 2003 H1 2002 2002
------------------------------------------------------------------------------------------------------
INCOME STATEMENT
Net revenue 939 712 1,539
Time charter equivalent earnings (TCE) 570 500 983
Gross profit (Net earnings from shipping activities) 300 140 303
Profit before depreciation (EBITDA)(1) 259 136 368
Profit before financial items (EBIT) 173 60 210
Profit/(loss) before tax 236 74 197
Net profit after tax for the period 236 434 557
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BALANCE SHEET
Total assets 4,079 3,700 4,013
Shareholders' equity 1,721 1,540 1,624
Debt 2,358 2,160 2,389
Invested capital 2,821 2,686 2,846
Net interest bearing debt 1,447 1,203 1,512
------------------------------------------------------------------------------------------------------
CASH FLOW
From operating activities 233
From investing activities -306
thereof gross investment in tangible fixed assets -420
From financing activities 125
---
Net cash flow 52
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KEY FIGURES
Gross margin 31.9% 19.7% 19.7%
EBITDA margin 27.6% 19.1% 23.9%
EBIT margin 18.4% 8.4% 13.6%
RoE (p.a) 28.2%
RoIC (p.a) 12.2%
Equity ratio 42.2% 41.6% 40.5%
Share price, end of period (DKK) 85.5 51.4 56.4
Millions of shares, end of period 18.2 18.2 18.2
Earnings per share (DKK) 13.0 23.8 30.6
Exchange rate USD/DKK, end of period 6.50 7.45 7.08
Exchange rate USD/DKK, average 6.74 8.28 7.89
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(1)EBITDA is defined as earnings before income taxes, financial items,
depreciation and amortizations. This does not represent a measure under
Generally Accepted Accounting (GAAP) Principles. EBITDA does not represent
and should not be considered as an alternative to net income or cash flow
from operations as determined by Generally Accepted Accounting Principles,
and our calculation thereof may not be comparable to that reported by other
companies. We believe that it is widely accepted that EBITDA provides useful
information regarding a company's ability to service and incur indebtedness.
EBITDA does not take into account our working capital and debt service
requirements, and accordingly is not necessarily indicative of amounts that
may be available for discretionary use.
RESULT FOR FIRST HALF 2003
Gross profit (net earnings from shipping activities) for the first half of 2003
was DKK 300 mill. (against DKK 140 mill. for first half of 2002). The increase
was primarily attributable to better freight rates in both the tanker and bulk
segments.
Profit before depreciation (EBITDA) was DKK 259 mill. (DKK 136 mill.).
Depreciation was DKK 86 mill. (DKK 76 mill.). The increase in depreciation was
the result of the Company's fleet expansion through the delivery of six
newbuildings during 2002-3.
Net financial items totaled DKK 63 mill. (DKK 14 mill.) during the period and
includes an unrealized gain relating to the Company's 33.35% holding in NORDEN
of DKK 55 mill. Net financing costs as compared to first half 2002 increased due
to the delivery of two newbuildings, but was partly offset by lower interest
rates and a lower USD/DKK exchange rate.
Profit before tax was DKK 236 mill. (DKK 74 mill.).
Profit after tax was DKK 236 mill. (DKK 434 mill., including a write-back of a
provision for deferred tax of DKK 360 mill. following the introduction of the
tonnage tax system in Denmark). The Tanker division contributed by far the most
substantial share - DKK 177 mill. - whilst the Bulk division contributed DKK 6
mill. Other activities (Offshore and liner activities and unallocated financial
items) showed a result after tax of DKK 53 mill.
Cash flow from operating activities was DKK 233 mill. in the first half of 2003,
consisting of cash earnings less increased working capital.
Cash flow from investment activities was DKK -306 mill., consisting of
investment in vessels of DKK 420 mill., particularly in connection with the
newbuilding program, less payments received of DKK 114 mill., primarily related
to the sale of TORM GYDA.
Cash flow from financing activities was DKK 125 mill. in the first half of 2003.
This amount consists principally of loan draw-downs of 310 mill. in connection
with the newbuildings, less repayments of mortgage debt of DKK 150 mill.
including debt outstanding on TORM GYDA, along with the payment of dividends on
the Company's shares amounting to DKK 35 mill.
Total liquidity generated during the period was therefore positive in the amount
of DKK 52 mill. The Company's cash and bond holdings (cash equivalents)
increased to DKK 574 mill. as against DKK 522 mill. at the end of 2002.
Total assets increased during the period from DKK 4,013 mill. to DKK 4,079 mill.
as a result of fixed assets increasing during the period from DKK 3,187 mill. to
DKK 3,222 mill., being the net effect of the delivery of two newbuildings and
depreciation during the period, coupled with the sale of TORM GYDA, but offset
by the fall of the USD/DKK exchange rate. The NORDEN holding is valued at DKK
445 per share, the closing price on the Copenhagen Stock Exchange on 30 June
2003.
The Company's net interest bearing debt decreased during the first half of 2003
from DKK 1.511 mill. to DKK 1.447 mill. The reduction is mainly attributable to
the positive operating cash flow achieved during the period and repayments,
offset by net loan draw-downs in respect of the delivery of the newbuildings and
the sale of TORM GYDA.
Shareholders' equity increased during the period from DKK 1.624 mill. to DKK
1.721 mill., mainly as a result of earnings less the payment of dividends.
Shareholders' equity to total assets was 42.2% at 30 June 2003.
As at 30 June 2003, the Company owned 881,368 TORM shares, equivalent to 4.8% of
the Company's share capital. The number of own shares was unchanged from 31
December 2002.
-------------------------------------------------------------------------------------------------
H1 2003 segment information (DKK mill.)
Tanker Bulk
division division Unallocated(1) Total
-------------------------------------------------------------------------------------------------
Net revenue 578 350 11 939
Port expenses and bunker -205 -164 0 -369
Time charter equivalent earnings 373 186 11 570
Charter hire -2 -142 -5 -149
Operating expenses -96 -19 -6 -121
Gross profit (Net earnings from shipping activities) 275 25 0 300
Administrative expenses -47 -16 -4 -67
Other operating income 26 0 0 26
Profit before depreciation (EBITDA) 254 9 -4 259
Depreciation -75 -10 -1 -86
Profit before financial items (EBIT) 179 -1 -5 173
Financial items -2 7 58 63
Profit/(loss) before tax 177 6 53 236
Tax 0 0 0 0
Net profit for the period 177 6 53 236
-------------------------------------------------------------------------------------------------
(1) Contains unallocated financial items and the Company's discontinued
operations, offshore and liner activities.
TANKER DIVISION
The Tanker division achieved profits after tax of DKK 177 mill. for the period.
TORM's strategy in the product tanker segment - which is to operate the vessels
in cooperation with other owners with similar focus on modern, quality tonnage -
was further cemented during the first half of 2003 through the delivery of a
number of newbuildings and the contracting of additional tonnage for delivery to
the three pools.
During the first half 2003, TORM benefited from its position in the spot market.
The Company has - compared to shipping companies, which focus on longer-term
contracts (so-called time-charters) - profited considerably from the firmer spot
market.
Transportation buyers are increasingly demanding, not only of the vessels, but
also of the owners' shore based activities. Over a period of some years, TORM
and its partners have increasingly won cargo contracts with leading
transportation buyers, who are thereby able to secure a part of their
transportation needs. This form of cooperation is gaining increasing importance.
The flexibility and experience and significant transportation capacity of TORM
and its pool partners, due to our large fleet, are key factors for customers in
this regard.
The Company's three managed pools, of which the LR2 pool is co-managed with A.P.
M0ller - Maersk, achieved rates in the second quarter 2003 substantially in
excess of those of the corresponding period last year. Specifically, rates were
respectively 52%, 76% and 31% higher in the LR2, LR1 and MR pools in the second
quarter 2003 than in the second quarter 2002.
Earnings data for the Tanker division
2002 2003 2003 % Change
----------------------
q2 q1 q2 q2-q2
LR2/Aframax vessels
--------------------------------------------------------------------------------
Available earning days 273 270 272 0%
Average number of vessels 3.0 3.0 3.0 0%
TCE per earning days *) 21,565 32,537 32,804 52%
OPEX per earning days **) -4,548 -5,651 -5,816 -28%
Operating C/F per earning days ***) 6,302 18,232 18,479 193%
--------------------------------------------------------------------------------
LR1/Panamax vessels
--------------------------------------------------------------------------------
Available earning days 240 210 194 -19%
Average number of vessels 2.6 2.3 2.1 -19%
TCE per earning days *) 15,021 25,499 26,507 76%
OPEX per earning days **) -6,408 -5,691 -7,070 -10%
Operating C/F per earning days ***) 6,550 19,808 19,436 197%
--------------------------------------------------------------------------------
MR vessels
--------------------------------------------------------------------------------
Available earning days 550 1,004 999 82%
Average number of vessels 6.0 11.2 11.0 82%
TCE per earning days *) 14,731 18,513 19,369 31%
OPEX per earning days **) -4,904 -5,701 -4,577 7%
Operating C/F per earning days ***) 9,800 12,812 14,792 51%
--------------------------------------------------------------------------------
*) TCE = Time Charter Equivalent Earnings = gross freight income less
bunker, commissions and port expenses (USD/day).
**) Operating expenses for own vessels (USD/day).
***) TCE earnings less operating expenses and charter hire (USD/day).
The substantially higher rates should be seen in the context of a number of
factors that all impacted freight rates positively. These included the now ended
strike in Venezuela, which resulted in longer voyages specially for refined
products destined for the U.S., uncertainty in connection with the war in Iraq,
lower inventories of oil products globally, combined with increased focus on
modern, quality tonnage following the sinking of the "Prestige" in November
2002.
Part of the risk exposure related to freight rate levels in the Company's Tanker
division is continuously countered through the use of various hedging
instruments, including Forward Freight Agreements (FFA). As of 30 June 2003, net
revenue contains adjustments to FFAs to the market value as of 30 June 2003.
This impacted net revenue and profits negatively by DKK 20.1 mill. in the first
half 2003 as freight rates at the end of first half 2003 were higher than the
average rates of the FFAs.
The Company has had significantly more available earning days in the MR segment
during the second quarter of 2003 as compared with the second quarter of 2002 as
a result of the addition of six newbuildings during 2002-3. In the LR1 segment,
the number of operating days reduced somewhat due to the re-delivery of
chartered-in vessels.
The increase in operating costs for the LR2 and LR1 vessels during the second
quarter 2003 as compared to the second quarter 2002 was due primarily to the
lower USD/DKK exchange rate, in as much as crew wages are partly payable in DKK.
Furthermore, additional scheduled docking activity in connection with some of
the Company's LR1 vessels resulted in a reduction in available operating days,
leading to higher operating costs per operating day.
BULK DIVISION
The Bulk division achieved a profit of DKK 6 mill. for the first half 2003.
This was a reflection of freight rates achieved by the Panamax and Handysize
vessels, which were respectively 70% and 48% higher in the second quarter 2003
than in the second quarter 2002. The higher rate levels were brought about
against a background of very limited growth in the world dry bulk fleet, coupled
with strong demand from China and the shut down of nuclear power stations in
Japan, resulting in an increased import of coal.
To ensure a more even risk profile, TORM hedged part of the exposure for 2003 in
2002. The hedging transactions are entered into through the use of various
hedging instruments, including Forward Freight Agreements (FFA). This hedge has
for the Panamax segment impacted the result for the first half 2003 negatively.
The result was rather modest, but the effects of the hedge will decrease during
the second half 2003. As of 30 June 2003, net revenue contains adjustments to
FFAs to the market value as of 30 June 2003. This impacted net revenue and
profits negatively by DKK 19.9 mill. in the first half 2003 as freight rates at
the end of first half 2003 were higher than the average rates of the FFAs.
During 2002, TORM chartered in a number of vessels at favourable rates, whereby
the second quarter of 2003 compared to the second quarter of 2002 saw a 44%
increase in the number of operating days in the Panamax segment and 10% more in
the Handysize segment.
Earnings data for the Bulk division
2002 2003 2003 % Change
-------------------
Panamax vessels q2 q1 q2 q2-q2
--------------------------------------------------------------------------------
Available earning days 892 1,161 1,286 44%
Average number of vessels 9.7 12.9 14.1 46%
TCE per earning days *) 7,021 9,429 11,905 70%
OPEX per earning days **) -3,159 -5,208 -4,592 -45%
Operating C/F per earning days ***) -682 869 3,331 589%
--------------------------------------------------------------------------------
Handysize vessels
--------------------------------------------------------------------------------
Available earning days 318 356 351 10%
Average number of vessels 3.5 4.0 3.9 11%
TCE per earning days *) 5,259 7,296 7,781 48%
OPEX per earning days **) -2,872 -3,442 -3,180 -11%
Operating C/F per earning days ***) 759 2,434 3,392 347%
--------------------------------------------------------------------------------
*) TCE = Time Charter Equivalent Earnings = gross freight income less
bunker, commissions and port expenses (USD/day)
**) Operating expenses for own vessels (USD/day).
***) TCE earnings less operating expenses and charter hire (USD/day).
OTHER AND UNALLOCATED ACTIVITIES
The Company's other activities consist of one chartered-in offshore supply
vessel, due to be redelivered in the second half of 2003 along with some minor
items related to the sale of the Liner activity which took place in 2002. The
discontinuation of these activities is proceeding according to plan and is
substantially completed. Aside from this, `Other activities' includes an amount
of DKK 58 mill. representing unallocated financial items, primarily the gain on
the NORDEN shares.
FLEET DEVELOPMENT
It is an integral part of TORM's strategy to own and operate one of the youngest
and most modern fleets in the market and to run it in cooperation with other
owners who share TORM's commitment to quality and safety. As part of the
implementation of this strategy, TORM took delivery in January 2003 of TORM
THYRA and TORM FREYA, both MR vessels and the last of a six vessel order from
STX in South Korea. In January 2003, the 1992-built MR product tanker TORM GYDA
was sold.
As at 30 June 2003, the Company owned 16.5 product tankers and four bulk
vessels. The average age of TORM's product tankers at 30 June 2003 was 5.5
years.
The Company's order book consists of six newbuildings with a total value of more
than USD 220 mill., (app. DKK 1.4 billion) namely two LR2 product tankers
delivering second half 2003, two LR1 product tankers delivering in 2004 and two
LR2 vessels due for delivery in 2006. A second hand Panamax bulkcarrier has been
purchased for delivery during the second half of 2003 and TORM has decided to
exercise an option to purchase the chartered-in Panamax bulkcarrier TORM MARTA.
This vessel will be delivered during the fourth quarter of 2003 at a price below
the current market.
TORM reports the `excess value' of the Company's fleet every six months. The
excess value as of 30 June 2003 was DKK 281 mill. and represents the difference
between book value and the estimated market value of the ships. This figure is
established by taking the average valuation carried out by two independent,
well-reputed international shipbrokers.
PRODUCT TANKER POOLS
TORM's three product tanker pools consisted of 12 partners with a total of 56
ships as at 30 June 2003. During the first half of 2003, the pools' fleet had a
net growth of two vessels. During the period, Pacific Carriers Limited resigned
from the MR Pool and withdrew three vessels (of which one will remain in the MR
pool until October 2003). At the end of 2003, based on contracted vessels being
delivered, the three pools will contain 61 vessels.
There are continuing discussions with potential partners seeking to enter the
pools.
EXPECTATIONS FOR THE REMAINDER OF 2003
Tanker rates during the first quarter and into the second quarter of 2003
remained at very high levels. Proposed legislation from EU and IMO, following
the sinking of "Prestige" in November 2002, with the aim of phasing out older
vessels that do not adhere to today's standards, and continued increased focus
on quality tonnage among buyers of transportation services coupled with the
continued low inventories of refined products, leads TORM to expect that freight
rates will remain at a high level in the second half of 2003.
Bulk rates have, as expected, likewise maintained firm levels for the first half
of 2003 and are expected to remain at this level for the remainder of the year,
given the relatively modest growth in the world fleet. As a result of forward
cover having been taken for the first half of the year, the result for the Bulk
division in the first half of 2003 was reduced considerably. The effects of the
forward cover will be decreasing in the second half of 2003.
The forecast for 2003 is based on the following estimated rates and operating
days being achieved, which should be construed as guidelines only.
Expected TCE freight rates for TORM in 2003
--------------------------------------------------------------------------------
USD/Day
2003 2003
------------------------------------------------------------- Operating
2002 Quarter 1(1) Quarter 2(1) Quarter 3(2) Quarter 4(2) Full year days
------------------------------------------------------------------------------------------
LR2 22,485 32,537 32,804 27,400 30,700 30,900 1,223
LR1 15,956 25,499 26,507 20,900 22,300 23,800 848
MR 13,468 18,513 19,369 13,900 12,800 16,100 3,996
Panamax 7,034 9,429 11,905 13,500 13,700 12,100 5,054
Handysize 5,849 7,296 7,781 8,400 7,500 7,700 1,253
------------------------------------------------------------------------------------------
(1) Actual
(2) Expected
(3) Simple average of the four quarters
As stated in announcement No. 8 to the Copenhagen Stock Exchange, dated 5 August
2003, expectations for the full year profits after tax were increased to DKK
375-400 mill. including an unrealised gain of DKK 55 mill. in respect of the
Company's holding in Dampskibsselskabet `NORDEN' A/S. The forecast is based on
an exchange rate of USD/DKK of 6.50 for the second half of the year, which
equates to an average exchange rate for the year as a whole of DKK 6.62.
The expectations are subject to uncertainty in both directions, due to the
global situation.
--------------------------------------------------------------------------------
SAFE HARBOUR STATEMENT - FORWARD LOOKING STATEMENTS
This release contains forward-looking statements concerning future events (as
defined in ss. 21E in Securities Exchange Act of 1934 with changes) and the
Company's operations, performance and financial conditions, including, in
particular, statements regarding: Spot and TCE rates in the near and long term,
operating days, tanker and bulker supply and demand, supply and demand for oil
and refined products, expectations about the Company's future capital
requirements and capital expenditures, the Company's growth strategy and how it
is implemented, the number of partner and the number of vessels the partners
have in the pools, environmental changes in regulation, cost savings and other
benefits. Words such as "expects", "intends", "plans", "believes",
"anticipates", "estimates", "outlook" and variations of such words and similar
expressions are intended to identify forward-looking statements.
These statements involve known and unknown risks and are based on a number of
assumptions and estimates, which are inherently subject to significant
uncertainties and contingencies, many of which are beyond the control of the
Company. In addition to the factors and matters discussed elsewhere in this
report, important factors that, in TORM's view, could cause actual results to
differ materially from those discussed in the forward looking statements include
the strengths of world economies, currencies and interest rate levels, general
market conditions, including fluctuations in charter hire rates and vessel
values, changes in demand in the shipping market, including the effect of
changes in OPEC's petroleum production levels and worldwide oil consumption and
storage, changes in the Company's operating expenses, including bunker prices,
dry-docking and insurance costs, changes in governmental rules and regulations
or actions taken by regulatory authorities, potential liability from pending
future litigation, general domestic and international political conditions,
potential disruption of shipping routes due to accidents or political events,
and other important factors described from time to time in the reports filed by
TORM with the Copenhagen Stock Exchange and the Securities and Exchange
Commission.
--------------------------------------------------------------------------------
ACCOUNTING POLICIES
The report for first half of 2003 has been prepared using the same accounting
policies as the report for the first quarter 2003, which was changed from the
2002 annual report. Accounting policies are described in more detail in the 2002
annual report and in the first quarter 2003 report, where the change in
accounting policies in the first quarter 2003 is described as well. The
comparative figures are for continuing operations, and are restated to reflect
current accounting policies. The first half 2003 report is unaudited, in line
with standard practice.
CONFERENCE CALL AND WEBCAST
TORM invites financial analysts and investors to a conference call today, 19
August 2003 at 17.00 Copenhagen time. The conference call will be conducted in
English and will be hosted by Klaus Kjaerulff, CEO and Klaus Nyborg, CFO. To
participate in the call, please call 10 minutes before the start of the
conference call on tel.: +45 32 71 46 11 (from Europe) or +1 334 323 6203 (from
the US).
It will also be possible to access the conference call via the internet on
www.torm.dk, where presentation slides for the conference call can also be
found.
Income statement
---------------------------------------------------------------------------------------------------------
First half 2003 First half 2002 2002
DKK mill.
---------------------------------------------------------------------------------------------------------
Net revenue 939 712 1.539
Port costs and bunker (369) (212) (556)
----------------------------------------------------
Time Charter Equivalent Earnings 570 500 983
Charter hire (149) (254) (463)
Technical running costs (121) (106) (217)
----------------------------------------------------
Net earnings from shipping activities (Gross profit) 300 140 303
Profit from discontinued activities 0 14 95
Profit on sale of vessels and interests 0 9 17
Administrative expenses (67) (50) (102)
Other operating income 26 23 55
Equity income from investments in associated
companies 0 0 0
----------------------------------------------------
Profit before depreciation (EBITDA) 259 136 368
Depreciation (86) (76) (158)
----------------------------------------------------
Profit before financial items (EBIT) 173 60 210
Financial items 63 14 (13)
----------------------------------------------------
Profit before tax 236 74 197
Tax on profit on ordinary activities 0 360 360
----------------------------------------------------
Net profit 236 434 557
----------------------------------------------------
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Balance sheet
--------------------------------------------------------------------------------
30 June 2003 31 Dec 2003
DKK mill.
--------------------------------------------------------------------------------
ASSETS
FIXED ASSETS
Tangible fixed assets
Leasehold improvements 4 5
Land and buildings 2 2
Vessels and capitalized dry-docking 2.548 2.543
Prepayment on vessels under construction 304 330
Other plant and operating equipment 17 17
------------------------------
2.875 2.897
------------------------------
Financial fixed assets
Other investments 347 290
------------------------------
347 290
------------------------------
Total fixed assets 3.222 3.187
------------------------------
CURRENT ASSETS
Inventories
Inventories of bunkers 25 33
------------------------------
Accounts receivables
Freight receivables, etc. 175 225
Other receivables 55 24
Prepayments 28 22
------------------------------
258 271
------------------------------
Securities
Bonds 296 354
------------------------------
Cash at bank and in hand 278 168
------------------------------
Total current assets 857 826
------------------------------
Total assets 4.079 4.013
------------------------------
--------------------------------------------------------------------------------
Balance sheet
--------------------------------------------------------------------------------
30 June 2003 31 Dec 2003
DKK mill.
--------------------------------------------------------------------------------
LIABILITIES
SHAREHOLDERS' EQUITY
Common shares 182 182
Own shares (52) (52)
Retained earnings 1.591 1.494
Proposed dividend 0 0
------------------------------
Total shareholders' equity 1.721 1.624
------------------------------
LIABILITIES
Long-term liabilities
Mortgage debt and bank loans 1.755 1.735
------------------------------
Current liabilities
Next year's instalments on mortgage debt
and bank loans 266 298
Trade accounts payable 112 164
Other liabilities 157 111
Accruals 68 81
------------------------------
603 654
------------------------------
Total liabilities 2.358 2.389
------------------------------
Total liabilities and shareholders' equity 4.079 4.013
------------------------------
--------------------------------------------------------------------------------
Consolidated cash flow statement - first half 2003
--------------------------------------------------------------------------------
First half 2003
DKK mill.
--------------------------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES
Profit before financial items (EBIT) 173
Interest received 16
Interest paid (36)
---------------------
153
Adjustments:
Reversal of depreciation 86
Reversal of other non-cash movements (7)
Change in inventories, accounts receivables and payables 1
---------------------
Net cash inflow from operating activities 233
---------------------
CASH FLOW FROM INVESTING ACTIVITIES
Investment in tangible fixed assets (420)
Sale of fixed assets 114
Net cash inflow/(outflow) from investing activities (306)
---------------------
CASH FLOW FROM FINANCING ACTIVITIES
Borrowing, mortgage debt 310
Repayment/redemption, mortgage debt (131)
Repayment/redemption, lease liabilities (19)
Dividends paid (35)
Cash inflow/(outflow) from financing activities 125
---------------------
Increase/(decrease) in cash and cash equivalents 52
Cash and cash equivalents,
including bonds, at 1 January 522
---------------------
Cash and cash equivalents,
including bonds, at 30 June 574
---------------------
--------------------------------------------------------------------------------
Shareholders' equity
--------------------------------------------------------------------------------
DKK mill.
Balance at 1 January 2003 1.719
Transitional adjustment -95
---
Adjusted balance at 1 January 2003 1.624
Exchange adjustment of shareholders' equity in subsidiaries
and associated companies -38
Exchange adjustment of loans to subsidiaries and associated
entities -54
Adjustment of value of derivatives and own shares -18
Exchange adjustment of loans 5
Dividends paid -36
Dividends on own shares 2
Net profit from profit and loss statement 236
---
Balance at 30 June 2003 1.721
--------------------------------------------------------------------------------
Income statement - quarter-by-quarter
--------------------------------------------------------------------------------
QUARTER-BY-QUARTER
q2 2003 q1 2003
DKK mill.
--------------------------------------------------------------------------------
Net revenue 437 502
Port costs and bunker (184) (185)
------------------------------
Time Charter Equivalent Earnings 253 317
Charter hire (54) (95)
Technical running costs (52) (69)
------------------------------
Net earnings from shipping activities
(Gross profit) 147 153
Profit from discontinued activities 0 0
Profit on sale of vessels and interests 0 0
Administrative expenses (40) (27)
Other operating income 13 13
Equity income from investments in associated
companies 0 0
------------------------------
Profit before depreciation (EBITDA) 120 139
Depreciation (42) (44)
------------------------------
Profit before financial items (EBIT) 78 95
Financial items 57 6
------------------------------
Profit before tax 135 101
Tax on profit on ordinary activities 0 0
------------------------------
Net profit 135 101
------------------------------
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Consolidated cash flow statement - quarter-by-quarter
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QUARTER-BY-QUARTER
q2 2003 q1 2003
DKK mill.
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CASH FLOW FROM OPERATING ACTIVITIES
Profit before financial items (EBIT) 78 95
Interest received 11 5
Interest paid (17) (19)
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72 81
Reversal of depreciation 42 44
Reversal of other non-cash movements 6 (13)
Change in inventories, accounts receivables and
payables 26 (24)
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Net cash inflow from operating activities 146 88
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CASH FLOW FROM INVESTING ACTIVITIES
Investment in tangible fixed assets (92) (328)
Sale of fixed assets 4 110
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Net cash inflow/(outflow) from investing activities (88) (218)
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CASH FLOW FROM FINANCING ACTIVITIES
Borrowing, mortgage debt 40 270
Repayment/redemption, mortgage debt (53) (78)
Repayment/redemption, lease liabilities (10) (10)
Dividends paid (35) 0
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Cash inflow/(outflow) from financing activities (58) 182
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Increase/(decrease) in cash and cash equivalents 0 52
Cash and cash equivalents,
including bonds, beginning of period 574 522
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Cash and cash equivalents,
including bonds, end of period 574 574
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Reconciliation to United States Generally Accepted Accounting Principles (US
GAAP), as of 30 June 2003:
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Net Income Shareholder's
Equity
DKK mill.
Net Income/Shareholders' equity as reported under
Danish GAAP 236 1.721
Dry dock costs 2 -41
Reversal of Write-down of vessels 1 -11
Unrealized gain/losses on marketable securities -59 0
Derivative Financial Instruments 0 0
Share options 1 1
Deferred tax -6 -373
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Net Income/Shareholders' equity in accordance with
US GAAP 175 1.296
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DKK/USD exchange rate as of 30 June 2003 of 6.5021 and average exchange rate for
first half 2003 of 6.7321 have been used in the translation. For a review of
principles and methods used in the reconciliation, please see TORM's 2002 Annual
Report.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
A/S STEAMSHIP COMPANY TORM
(registrant)
Dated: August 21, 2003 By: /s/ Klaus Nyborg
-------------------------------------------
Klaus Nyborg
Chief Financial Officer
03810.0001 #424338