TORM
A/S
(registrant)
|
||
Dated:
May 20, 2010
|
By:
|
/s/ Jacob Meldgaard
Name:
Jacob Meldgaard
Title: Chief
Executive Officer
|
TORM
posted a profit before tax of USD 3 million in the first quarter of 2010
under continued difficult market conditions. "During the first quarter of
2010, the winter market and the increased industry throughput in the Far
East supported the product tanker market. We continue to believe that the
underlying growth in global oil demand will support the product tanker
rates in the longer term, however we do not expect this to have
significant effect on our 2010 results," CEO Jacob Meldgaard
states.
|
|||
·
|
Profit
before tax for the first three months of 2010 was USD 3 million, compared
to USD 39 million in the same period last year. The result for the first
quarter was in line with expectations and the full-year forecast for
2010.
|
||
·
|
The
result was positively impacted by USD 18 million from the sale of two bulk
carriers, as earlier announced. The vessels were sold during the fourth
quarter of 2009, but the profit is recognised in this quarter in which
delivery took place.
|
||
·
|
The
cash flow from operating activities for the first quarter of 2010 was USD
21 million.
|
||
·
|
Product
tanker rates remained low during the first quarter of 2010. The positive
impact on the LR segment from continued naphtha demand in the Far East was
somewhat offset by discharging of floating storage, freeing up tonnage.
The cold winter in the Northern Hemisphere increased demand for heating
oil and supported the MR segment despite the continued low demand for
gasoline in the USA. Influx of new tonnage has continued in 2010 though
considerable delays in new deliveries are seen.
|
||
·
|
The
Panamax bulk rates have remained strong during the first quarter of 2010.
Due to TORM’s high coverage of earning days, the developments in bulk spot
rates had limited impact on TORM’s earnings.
|
||
·
|
TORM’s
efficiency improvement programme – Greater Efficiency Power – remains on
track to deliver the projected annual USD 50 million cost savings in 2010
compared to 2008 operating levels.
|
||
·
|
On
a quarterly basis, TORM calculates the long-term earnings potential of its
fleet based on discounted expected future cash flows. The calculated value
of the fleet as of 31 March 2010 supports book values.
|
||
·
|
At
31 March 2010, equity amounted to USD 1,248 million, equivalent to USD
18.0 per share (DKK 99.4 per share), excluding treasury shares,
corresponding to an equity ratio of 39%.
|
||
·
|
TORM’s
unutilised loan facilities and cash totalled approximately USD 700 million
at the end of the first quarter. The remaining capex relating to the order
book amounts to USD 435 million.
|
||
·
|
Net
interest-bearing debt totalled USD 1,622 million at 31 March 2010 compared
to USD 1,683 million by year-end 2009.
|
||
·
|
At
31 March 2010, TORM had covered 26% of the remaining earning days for 2010
in the Tanker Division at USD/day 18,821 and 81% of the remaining earning
days in the Bulk Division at USD/day 18,972.
|
||
·
|
TORM
maintains its forecast of a loss before tax of USD 15 to 60 million for
2010, however towards the lower end of the range given the estimated
product tanker rates for the remainder of 2010.
|
||
Telecon-ference
|
A
teleconference and webcast (www.torm.com) will take place today, at 15:00
Copenhagen time (CET), see details on page 9.
|
||
Contact
|
TORM
A/S
|
Telephone:
+45 39 17 92 00
|
|
Tuborg
Havnevej 18
|
Jacob
Meldgaard, CEO
|
||
DK-2900
Hellerup, Denmark
|
Roland
M. Andersen, CFO
|
ANNOUNCEMENT
NO. 6 – 2010
|
||
20
MAY 2010
|
TORM
– FIRST QUARTER REPORT 2010
|
1/
19
|
Million
USD
|
Q1
2010
|
Q1
2009
|
2009
|
||||||||||
Income
statement
|
|||||||||||||
Revenue
|
205.5
|
258.8
|
862.3
|
||||||||||
Time
charter equivalent earnings (TCE)
|
147.5
|
199.1
|
632.9
|
||||||||||
Gross
profit
|
55.9
|
97.5
|
242.5
|
||||||||||
EBITDA
|
55.3
|
80.7
|
202.5
|
||||||||||
Operating
profit (EBIT)
|
20.3
|
48.9
|
49.8
|
||||||||||
Profit
before tax
|
2.6
|
39.2
|
-19.0
|
||||||||||
Net
profit
|
2.3
|
39.6
|
-17.4
|
||||||||||
Balance
sheet
|
|||||||||||||
Total
assets
|
3,225.7
|
3,286.6
|
3,227.2
|
||||||||||
Equity
|
1,247.7
|
1,340.7
|
1,246.7
|
||||||||||
Total
liabilities
|
1,978.0
|
1,945.9
|
1,980.5
|
||||||||||
Invested
capital
|
2,866.3
|
2,950.7
|
2,926.0
|
||||||||||
Net
interest bearing debt
|
1,621.6
|
1,615.4
|
1,682.5
|
||||||||||
Cash
flow
|
|||||||||||||
From
operating activities
|
20.9
|
61.2
|
116.3
|
||||||||||
From
investing activities
|
41.1
|
-126.7
|
-199.4
|
||||||||||
Thereof
investment in tangible fixed assets
|
-23.6
|
-129.5
|
-288.8
|
||||||||||
From
financing activities
|
2.5
|
-4.1
|
36.6
|
||||||||||
Net
cash flow
|
64.5
|
-69.6
|
-46.5
|
||||||||||
Key
financial figures
|
|||||||||||||
Margins:
|
|||||||||||||
TCE
|
71.8
|
%
|
76.9
|
%
|
73.4
|
%
|
|||||||
Gross
profit
|
27.2
|
%
|
37.7
|
%
|
28.2
|
%
|
|||||||
EBITDA
|
26.9
|
%
|
31.2
|
%
|
23.5
|
%
|
|||||||
Operating
profit
|
9.9
|
%
|
18.9
|
%
|
5.8
|
%
|
|||||||
Return
on Equity (RoE) (p.a.)*)
|
-2.9
|
%
|
12.1
|
%
|
-1.3
|
%
|
|||||||
Return
on Invested Capital (RoIC) (p.a.)**)
|
0.9
|
%
|
6.8
|
%
|
1.7
|
%
|
|||||||
Equity
ratio
|
38.7
|
%
|
40.8
|
%
|
38.6
|
%
|
|||||||
Exchange
rate USD/DKK, end of period
|
5.52
|
5.60
|
5.19
|
||||||||||
Exchange
rate USD/DKK, average
|
5.38
|
5.72
|
5.36
|
||||||||||
Share
related key figures
|
|||||||||||||
Earnings
per share, EPS
|
USD
|
0.0
|
0.6
|
-0.3
|
|||||||||
Diluted
earnings per share, DEPS
|
USD
|
0.2
|
0.6
|
-0.3
|
|||||||||
Cash
flow per share, CFPS
|
USD
|
0.3
|
0.9
|
1.7
|
|||||||||
Share
price, end of period (per share of DKK 5 each)
|
DKK
|
57.0
|
43.5
|
50.7
|
|||||||||
Number
of shares, end of period
|
Million
|
72.8
|
72.8
|
72.8
|
|||||||||
Number
of shares (excl. treasury shares), average
|
Million
|
69.2
|
69.2
|
69.2
|
ANNOUNCEMENT
NO. 6 – 2010
|
||
20
MAY 2010
|
TORM
– FIRST QUARTER REPORT 2010
|
2/
19
|
Million USD | Q1 2010 | |||||||||||||||
Tanker
Division
|
Bulk
Division
|
Not-
Allocated
|
Total
|
|||||||||||||
Revenue
|
184.1 | 21.4 | 0.0 | 205.5 | ||||||||||||
Port
expenses, bunkers and commissions
|
-59.0 | -0.9 | 0.0 | -59.9 | ||||||||||||
Freight
and bunkers derivatives
|
1.9 | 0.0 | 0.0 | 1.9 | ||||||||||||
Time
charter equivalent earnings
|
127.0 | 20.5 | 0.0 | 147.5 | ||||||||||||
Charter
hire
|
-38.6 | -13.1 | 0.0 | -51.7 | ||||||||||||
Operating
expenses
|
-38.3 | -1.6 | 0.0 | -39.9 | ||||||||||||
Gross
Profit
|
50.1 | 5.8 | 0.0 | 55.9 | ||||||||||||
Profit
from sale of vessels
|
0.0 | 18.2 | 0.0 | 18.2 | ||||||||||||
Administrative
expenses
|
-16.8 | -1.3 | 0.0 | -18.1 | ||||||||||||
Other
Operating income
|
1.7 | 0.0 | 0.0 | 1.7 | ||||||||||||
Share
of results of jointly controlled entities
|
1.0 | 0.0 | -3.4 | -2.4 | ||||||||||||
EBITDA
|
36.0 | 22.7 | -3.4 | 55.3 | ||||||||||||
Impairment
losses on joint controlled entities
|
0.0 | 0.0 | 0.0 | 0.0 | ||||||||||||
Depreciation
and impairment losses
|
-34.4 | -0.6 | 0.0 | -35.0 | ||||||||||||
Operating
profit (EBIT)
|
1.6 | 22.1 | -3.4 | 20.3 | ||||||||||||
Financial
items, net
|
- | - | -17.7 | -17.7 | ||||||||||||
Profit/(Loss)
before tax
|
- | - | -21.1 | 2.6 | ||||||||||||
Tax
|
- | - | -0.3 | -0.3 | ||||||||||||
Net
profit
|
- | - | -21.4 | 2.3 |
Tanker
Division
|
The
operating profit for the first quarter of 2010 is USD 2 million, compared
to USD 26 million in the same period in 2009.
|
Despite
the fact that the world from a macroeconomic perspective is in recovery
mode, the product tanker rates have generally been at a low
level.
|
|
The
rate development in the first quarter of 2010 was impacted by continued
influx of new tonnage, although the significant delay in deliveries
experienced in 2009 has continued in the first quarter of 2010. The actual
delivery in the first quarter of 2010 was approximately 60 vessels
compared to an order book of more than 100 vessels in the product tanker
market.
|
|
For
the larger LR vessels the market and rates were impacted by a significant
reduction in floating storage, which has freed up tonnage. The general
reduction of floating storage has continued during April. The movement in
and level of floating storage is relatively volatile and driven by the
contango curves for the various products.
|
|
The
LR segment has shown some strength as the naphtha demand in the Far East
remained strong throughout the first quarter and due to extension of some
floating storage contracts fixed at the end of 2009 at higher rates. For
the LR2s the tonnage balance was supported by a swap of a number of
vessels into dirty.
|
ANNOUNCEMENT
NO. 6 – 2010
|
||
20
MAY 2010
|
TORM
– FIRST QUARTER REPORT 2010
|
3/
19
|
The
MR fleet has generally been negatively impacted by the continued low
gasoline demand in the USA. In the first quarter of 2010, the hard winter
in the Northern Hemisphere had a positive impact on rates, increasing the
demand for heating oil. In the USA, the demand in January for heating oil
was up by 65% year-on-year. For the ice-class vessels, better rates were
naturally seen during the hard winter.
|
|
As
a consequence of the late delivery of TORM Alice and the postponement of
some T/C-in vessels, the number of earning days for the first quarter, and
thereby for the full year 2010, is below plan at the beginning of the
year. Hence operating costs and charter hire have been lower than
expected.
|
|
At
31 of March, the coverage for the remaining part of 2010 is 26% at USD/day
18,821.
|
Tanker
Division
|
Q1
09
|
Q2
09
|
Q3
09
|
Q4
09
|
Q1
10
|
Change
Q1
09
-
Q1 10
|
12
month
avg.
|
||
LR2
(Aframax, 90-110,000 DWT)
|
|||||||||
Available
earning days
|
1,167
|
1,179
|
1,190
|
1,173
|
1,163
|
0
|
% | ||
TCE
per earning day from the LR2 Pool
|
24,192
|
17,145
|
18,401
|
20,331
|
22,216
|
-8
|
% | ||
TCE
per earning day1)
|
21,977
|
15,785
|
17,406
|
18,356
|
18,456
|
-16
|
% |
18,387
|
|
Operating
days
|
1,080
|
1,092
|
1,104
|
1,104
|
1,080
|
0
|
% | ||
Operating
expenses per operating day2)
|
7,507
|
7,556
|
6,496
|
6,933
|
6,908
|
-8
|
% |
6,972
|
|
LR1
(Panamax 75-85,000 DWT)
|
|||||||||
Available
earning days
|
1,864
|
1,756
|
1,835
|
2,025
|
1,748
|
-6
|
% | ||
TCE
per earning day from the LR1 Pool
|
22,503
|
15,577
|
15,036
|
14,304
|
15.858
|
-30
|
% | ||
TCE
per earning day1)
|
21,755
|
18,491
|
16,514
|
16,516
|
16,686
|
-23
|
% |
17,982
|
|
Operating
days
|
810
|
819
|
828
|
828
|
810
|
0
|
% | ||
Operating
expenses per operating day2)
|
7,852
|
7,142
|
6,706
|
5,986
|
6,454
|
-18
|
% |
6,571
|
|
MR
(45,000 DWT)
|
|||||||||
Available
earning days
|
3,174
|
3,344
|
3,602
|
3,829
|
3,755
|
18
|
% | ||
TCE
per earning day from the MR Pool
|
20.201
|
14,712
|
14,974
|
11,521
|
13.961
|
-31
|
% | ||
TCE
per earning day1)
|
19,802
|
15,363
|
15,349
|
12,417
|
14,700
|
-26
|
% |
15,378
|
|
Operating
days
|
2,497
|
2,548
|
2,707
|
2,832
|
2,790
|
12
|
% | ||
Operating
expenses per operating day2)
|
8,227
|
7,458
|
6,621
|
6,770
|
6,883
|
-16
|
% |
6,923
|
|
SR
(35,000 DWT)
|
|||||||||
Available
earning days
|
1,145
|
1,135
|
1,160
|
1,103
|
1,002
|
-12
|
% | ||
TCE
per earning day1)
|
20,963
|
17,483
|
18,378
|
16,894
|
18,034
|
-14
|
% |
18,371
|
|
Operating
days
|
969
|
1,001
|
1,012
|
1,012
|
990
|
2
|
% | ||
Operating
expenses per operating day2)
|
7,662
|
6,600
|
6,105
|
6,326
|
6,041
|
-21
|
% |
6,268
|
Bulk
Division
|
The
operating profit for the first quarter of 2010 was USD 22 million,
compared to USD 24 million in the first quarter of
2009.
|
The
number of earning days for the Bulk Division in the first quarter of 2010
was 23% lower than in the first quarter of 2009 due to sale of vessels. In
the first quarter of 2010, two bulk carriers, sold in the fourth quarter
of 2009, were delivered to the buyers.
|
|
Throughout
the first quarter of 2010, the Chinese demand for iron ore and coal
remained strong compared to 2009, which supported the bulk market rates.
The Panamax spot rates were volatile in the first quarter of 2010, but to
a lesser degree than usual. The Panamax rates fluctuated between USD/day
25,000 and 34,000 compared to a span between 4,000 and 19,000 in the first
quarter of 2009.
|
ANNOUNCEMENT
NO. 6 – 2010
|
||
20
MAY 2010
|
TORM
– FIRST QUARTER REPORT 2010
|
4/
19
|
The
influx of new tonnage and the order book for bulk carriers are
significant, even when taking slippage into account. During first quarter
of 2010, the bulk carrier fleet grew by 4%.
|
|
The
current driver for the bulk market continues to be high imports of both
iron ore and coal into China and the high congestion. When taking the
significant order book into consideration TORM does expect that the net
fleet growth will outpace demand growth and therefore impact rates
adversely.
|
|
As
TORM, in line with its strategy, seeks high coverage of earning days for
the Bulk Division, the development in bulk spot rates has limited impact
on TORM’s earnings in 2010.
|
|
At
31 of March, 81% of the remaining earning days in 2010 for the Bulk
Division is covered at USD/day
18,972.
|
Bulk
Division
|
Q1 09 | Q2 09 | Q3 09 | Q4 09 | Q1 10 |
Change
Q1
09
-
Q1 10
|
12
month
avg.
|
|||||||||||||||||||||
Panamax
(60-80,000 DWT)
|
||||||||||||||||||||||||||||
Available
earning days
|
1,458 | 1,496 | 1,255 | 1,204 | 1,119 | -23 | % | |||||||||||||||||||||
TCE
per earning day1)
|
13,929 | 13,756 | 17,968 | 19,690 | 18,298 | 31 | % | 17,208 | ||||||||||||||||||||
Operating
days
|
622 | 636 | 392 | 368 | 315 | -49 | % | |||||||||||||||||||||
Operating
expenses per operating day2)
|
6,798 | 5,106 | 4,477 | 4,066 | 5,187 | -24 | % | 4,753 |
Other
activities
|
Other
(non-allocated) activities are a loss on investments in joint ventures of
USD 3 million, financial expenses of USD 18 million and tax of USD 0
million.
|
Fleet
development
|
In
the first quarter, TORM delivered the two sold Panamax bulk carriers TORM
Charlotte and TORM Rotna to their new owners. At the end of the quarter,
TORM's fleet of owned vessels comprised 64 tankers and two bulk carriers.
In addition to these, TORM had 25 tankers and 9 bulk carriers on time
charter. Additional 39 tankers were either in pools or under commercial
management.
|
Owned
vessels
|
||||||||||||||||
31
Dec 09
|
Addition
|
Disposal
|
31
Mar 10
|
|||||||||||||
LR2
/ Aframax
|
12.5 | - | - | 12.5 | ||||||||||||
LR1
/ Panamax
|
7.5 | - | - | 7.5 | ||||||||||||
MR
|
33.0 | - | - | 33.0 | ||||||||||||
SR
|
11.0 | - | - | 11.0 | ||||||||||||
Tankers
|
64.0 | - | - | 64.0 | ||||||||||||
Panamax
dry bulk
|
4.0 | - | 2.0 | 2.0 | ||||||||||||
Total
|
68.0 | - | 2.0 | 66.0 |
ANNOUNCEMENT
NO. 6 – 2010
|
||
20
MAY 2010
|
TORM
– FIRST QUARTER REPORT 2010
|
5/
19
|
Planned
fleet changes
|
No
vessels were contracted in the first quarter of 2010, and at the end of
the quarter the order book thus comprised 11 MR vessels and 4 Kamsarmax
vessels. The remaining Capex relating to the order book amounted to USD
435 million.
|
Newbuilding
to be delivered
|
||||||||||||||||
2010
|
2011
|
2012
|
2013
|
|||||||||||||
LR2
/ Aframax
|
- | - | - | - | ||||||||||||
LR1
/ Panamax
|
- | - | - | - | ||||||||||||
MR
|
5.0 | 4.0 | 2.0 | - | ||||||||||||
SR
|
- | - | - | - | ||||||||||||
Tankers
|
5.0 | 4.0 | 2.0 | 0.0 | ||||||||||||
Kamsarmax
dry bulk
|
0.0 | 2.0 | 1.0 | 1.0 | ||||||||||||
Total
|
5.0 | 6.0 | 3.0 | 1.0 |
In
April 2010, TORM has taken delivery of TORM Alice, the first of the 11 MR
sister vessels which TORM will be taking delivery of from GSI
Guangzhou.
|
ANNOUNCEMENT
NO. 6 – 2010
|
||
20
MAY 2010
|
TORM
– FIRST QUARTER REPORT 2010
|
6/
19
|
Results
|
|
First
quarter 2010
|
The
gross profit for the first quarter of 2010 was USD 56 million, compared to
USD 98 million for the same period in 2009. The administration expenses
were USD 18 million, against USD 20 million for the first quarter of 2009,
corresponding to a reduction of 10%. Profit before depreciation (EBITDA)
for the period was USD 55 million, against USD 81 million for the first
quarter of 2009. The decline in gross profit and EBITDA is due to lower
rates in first quarter of 2010 compared to same period last year. The
result in the first quarter of 2009 was positively impacted by coverage
taken at historically higher rates.
|
Depreciation
was USD 35 million during the first quarter of 2010.
|
|
The
operating profit for the first quarter of 2010 was USD 20 million,
compared to USD 49 million for the same quarter of 2009. The Tanker and
Bulk Divisions contributed profits of USD 2 million and USD 22 million,
respectively, and the non-allocated operating income was a loss of USD 3
million.
|
|
In
the first quarter of 2010, financials amounted to an expense of USD 18
million, against an expense of USD 10 million in the same quarter of 2009.
The increase was driven by a negative non-cash mark-to-market adjustment
of USD 2 million in first quarter of 2010, compared to a positive non-cash
mark-to-market adjustment of USD 6 million in first quarter of
2009.
|
|
Profit
after tax was USD 2 million in the first quarter of 2010, against USD 40
million in the first quarter of 2009.
|
|
Assets
|
Total
assets felt slightly from USD 3,227 million by year-end 2009 to USD 3,226
million in the first quarter of 2010.
|
On
a quarterly basis, TORM calculates the long-term earnings potential of its
fleet based on discounted expected future cash flows. The calculated value
of the fleet as of 31 March 2010 supports book values.
|
|
Liabilities
|
During
the first quarter of 2010, the net interest-bearing debt fell to USD 1,622
million from USD 1,683 million at 31 December 2009.
|
Total
equity
|
In
the first quarter of 2010, equity increased from USD 1,247 million at 31
December 2009 to USD 1,248 million, which is principally the result of
earnings during the period. Equity as a percentage of total assets was
steady at 39% from 31 December 2009 to 31 March 2010.
|
At
31 March 2010, TORM held 3,461,580 treasury shares, corresponding to 4.8%
of the Company's share capital, which corresponds to a decrease of 94,784
no. of shares since 31 December 2009. The decrease corresponds to the
number of shares TORM has allocated to employees in connection with the
incentive programme for the period 2007-2009.
|
|
Liquidity
|
TORM's
unutilised loan facilities and cash totalled approximately USD 700 million
at the end of the first quarter of 2010.
|
Outlook
|
TORM
maintains its forecast of a loss before tax of USD 15 - 60 million,
however towards the lower end of the range given the estimated product
tanker rates for the remainder of 2010. There is though considerable
uncertainty around the expectations due to the relatively low coverage for
the Tanker Division.
|
ANNOUNCEMENT
NO. 6 – 2010
|
||
20
MAY 2010
|
TORM
– FIRST QUARTER REPORT 2010
|
7/
19
|
Coverage
|
At
31 March 2010, TORM had covered 26% of the remaining earning days for 2010
in the Tanker Division at USD/day 18,821 and 81% of the remaining earning
days in the Bulk Division at USD/day 18,972.
|
2010
|
2011
|
2012
|
2010
|
2011
|
2012
|
|||||||||||||||||||
Owned
days
|
||||||||||||||||||||||||
LR2
|
3,268 | 4,389 | 4,392 | |||||||||||||||||||||
LR1
|
1,873 | 2,533 | 2,539 | |||||||||||||||||||||
MR
|
9,974 | 14,637 | 15,561 | |||||||||||||||||||||
SR
|
2,943 | 3,982 | 3,993 | |||||||||||||||||||||
Tanker
Division
|
18,058 | 25,541 | 26,486 | |||||||||||||||||||||
Bulk
Division
|
548 | 1,426 | 1,483 | |||||||||||||||||||||
T/C
in days
|
T/C
in costs (USD/day)
|
|||||||||||||||||||||||
LR2
|
273 | - | - | 24,500 | - | - | ||||||||||||||||||
LR1
|
3,563 | 4,815 | 4,131 | 22,001 | 22,797 | 23,091 | ||||||||||||||||||
MR
|
2,455 | 3,740 | 3,297 | 16,997 | 16,805 | 16,127 | ||||||||||||||||||
SR
|
- | - | - | - | - | - | ||||||||||||||||||
Tanker
Division
|
6,291 | 8,554 | 7,428 | 20,157 | 20,177 | 20,000 | ||||||||||||||||||
Bulk
Division
|
2,847 | 3,579 | 4,227 | 15,813 | 15,475 | 15,949 | ||||||||||||||||||
Total
physical days
|
Covered
days
|
|||||||||||||||||||||||
LR2
|
3,541 | 4,389 | 4,392 | 931 | 457 | 42 | ||||||||||||||||||
LR1
|
5,436 | 7,347 | 6,671 | 1,045 | 730 | 532 | ||||||||||||||||||
MR
|
12,429 | 18,377 | 18,858 | 3,175 | 1,338 | 368 | ||||||||||||||||||
SR
|
2,943 | 4,015 | 4,026 | 1,099 | 730 | 40 | ||||||||||||||||||
Tanker
Division
|
24,349 | 34,128 | 33,947 | 6,250 | 3,255 | 982 | ||||||||||||||||||
Bulk
Division
|
3,084 | 4,920 | 5,710 | 2,751 | 581 |
‐
|
||||||||||||||||||
Coverage
%
|
Coverage
rates (USD/day)
|
|||||||||||||||||||||||
LR2
|
26 | 10 | 1 | 23,903 | 28,882 | 32,658 | ||||||||||||||||||
LR1
|
19 | 10 | 8 | 19,088 | 18,582 | 17,495 | ||||||||||||||||||
MR
|
26 | 7 | 2 | 17,992 | 17,749 | 15,364 | ||||||||||||||||||
SR
|
37 | 18 | 1 | 16,657 | 15,128 | 15,128 | ||||||||||||||||||
Tanker
Division
|
26 | 10 | 3 | 18,821 | 18,910 | 17,245 | ||||||||||||||||||
Bulk
Division
|
81 | 12 | 0 | 18,972 | 16,517 |
‐
|
Contracts
not included above
|
-3.1
|
Contracts
included above
|
0.0
|
Subsequent
events
|
Since
the balance sheet date no subsequent events have taken place which change
TORM’s expectations to the outlook for either 2010 or any subsequent
periods.
|
Safe
Harbor Forward-looking Statements
|
Matters
discussed in this release may constitute forward-looking statements.
Forward-looking statements reflect our current views with respect to
future events and financial performance and may include statements
concerning plans, 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.
|
ANNOUNCEMENT
NO. 6 – 2010
|
||
20
MAY 2010
|
TORM
– FIRST QUARTER REPORT 2010
|
8/
19
|
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 57.0 at 31 March 2010, against DKK 50.5 at
the beginning of the year, equivalent to an increase of DKK 6.5
(13%).
|
Accounting
policies
|
This
interim report for the first quarter of 2010 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. The interim report for the first quarter of
2010 is unaudited and follows the same accounting policies as the Annual
Report for 2009.
|
Information
|
Teleconference
|
TORM
will host a telephone conference for financial analysts and investors on
20 May 2010 at 15:00 Copenhagen time (CET), reviewing the interim report
for the first quarter of 2010. The conference call will be hosted by Jacob
Meldgaard, CEO, Roland M. Andersen, CFO and Sune S. Mikkelsen, VP IR 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
financial report for the first half of 2010 will be released on 19 August
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 – 31 March 2010.
|
|
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
2010.
|
ANNOUNCEMENT
NO. 6 – 2010
|
||
20
MAY 2010
|
TORM
– FIRST QUARTER REPORT 2010
|
9/
19
|
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,
20 May 2010
|
||
Executive
Management
|
Board
of Directors
|
|
Jacob
Meldgaard, CEO
|
Niels
Erik Nielsen, Chairman
|
|
Roland
M. Andersen, CFO
|
Christian
Frigast, Deputy Chairman
|
|
Peter
Abildgaard
|
||
Lennart
Arrias
|
||
Margrethe
Bligaard Thomasen
|
||
Bo
Jagd
|
||
Jesper
Jarlbæk
|
||
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, through a 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 (ticker: TORM) and on NASDAQ in New York (ticker:
TRMD). For further information, please visit
www.torm.com.
|
ANNOUNCEMENT
NO. 6 – 2010
|
||
20
MAY 2010
|
TORM
– FIRST QUARTER REPORT 2010
|
10/
19
|
Million
USD
|
Q1
2010
|
Q1
2009
|
2009
|
|||||||||
Revenue
|
205.5
|
258.8
|
862.3
|
|||||||||
Port
expenses, bunkers and commissions
|
-59.9
|
-58.8
|
-217.4
|
|||||||||
Freight
and bunkers derivatives
|
1.9
|
-0.9
|
-12.0
|
|||||||||
Time
charter equivalent earnings
|
147.5
|
199.1
|
632.9
|
|||||||||
Charter
hire
|
-51.7
|
-54.1
|
-220.9
|
|||||||||
Operating
expenses
|
-39.9
|
-47.5
|
-169.5
|
|||||||||
Gross
profit (Net earnings from shipping activities)
|
55.9
|
97.5
|
242.5
|
|||||||||
Profit
from sale of vessels
|
18.2
|
0.0
|
33.1
|
|||||||||
Administrative
expenses
|
-18.1
|
-20.1
|
-78.2
|
|||||||||
Other
operating income
|
1.7
|
2.4
|
7.4
|
|||||||||
Share
of results of jointly controlled entities
|
-2.4
|
0.9
|
-2.3
|
|||||||||
EBITDA
|
55.3
|
80.7
|
202.5
|
|||||||||
Impairment
losses in jointly controlled entities
|
0.0
|
0.0
|
-20.0
|
|||||||||
Depreciation
and impairment losses
|
-35.0
|
-31.8
|
-132.7
|
|||||||||
Operating
profit (EBIT)
|
20.3
|
48.9
|
49.8
|
|||||||||
Financial
items
|
-17.7
|
-9.7
|
-68.8
|
|||||||||
Profit
before tax
|
2.6
|
39.2
|
-19.0
|
|||||||||
Tax
|
-0.3
|
0.4
|
1.6
|
|||||||||
Net
profit
|
2.3
|
39.6
|
-17.4
|
|||||||||
Earnings
per share, EPS
|
||||||||||||
Earnings
per share, EPS (USD)
|
0.0
|
0.6
|
-0.3
|
|||||||||
Earnings
per share, EPS (DKK)*)
|
0.2
|
3.3
|
-1.3
|
ANNOUNCEMENT
NO. 6 – 2010
|
||
20
MAY 2010
|
TORM
– FIRST QUARTER REPORT 2010
|
11/
19
|
Million
USD
|
Q1
2010
|
Q1
2009
|
2009
|
|||||||||
Net
profit for the period
|
2.3
|
39.6
|
-17.4
|
|||||||||
Other
comprehensive income:
|
||||||||||||
Exchange
rate adjustment arising on translation of entities using a measurement
currency different from USD
|
0.0
|
-0.1
|
0.0
|
|||||||||
Fair
value adjustment on hedging instruments
|
-4.3
|
16.4
|
26.5
|
|||||||||
Value
adjustment on hedging instruments transferred to income
statement
|
1.6
|
4.8
|
4.1
|
|||||||||
Value
adjustment on hedging instruments transferred to vessels
|
0.0
|
-1.2
|
-1.2
|
|||||||||
Fair
value adjustment on available for sale investments
|
-0.2
|
-1.0
|
1.6
|
|||||||||
Transfer
to income statement on sale of available for sale
Investments
|
0.0
|
0.0
|
-3.7
|
|||||||||
Other
comprehensive income after tax
|
-2.9
|
18.9
|
27.3
|
|||||||||
Total
comprehensive income
|
-0.6
|
58.5
|
9.9
|
ANNOUNCEMENT
NO. 6 – 2010
|
||
20
MAY 2010
|
TORM
– FIRST QUARTER REPORT 2010
|
12/
19
|
Million
USD
|
Q1 09 | Q2 09 | Q3 09 | Q4 09 | Q1 10 | |||||||||||||||
Revenue
|
258.8 | 193.6 | 208.8 | 201.1 | 205.5 | |||||||||||||||
Port
expenses, bunkers and commissions
|
-58.8 | -48.1 | -56.1 | -54.4 | -59.9 | |||||||||||||||
Freight
and bunkers derivatives
|
-0.9 | -7.3 | -3.3 | -0.5 | 1.9 | |||||||||||||||
Time
charter equivalent earnings
|
199.1 | 138.2 | 149.4 | 146.2 | 147.5 | |||||||||||||||
Charter
hire
|
-54.1 | -55.1 | -56.3 | -55.4 | -51.7 | |||||||||||||||
Operating
expenses
|
-47.5 | -44.2 | -38.7 | -39.1 | -39.9 | |||||||||||||||
Gross
profit (Net earnings from shipping activities)
|
97.5 | 38.9 | 54.4 | 51.7 | 55.9 | |||||||||||||||
Profit
from sale of vessels
|
0.0 | 12.5 | 20.7 | -0.1 | 18.2 | |||||||||||||||
Administrative
expenses
|
-20.1 | -22.5 | -17.9 | -17.7 | -18.1 | |||||||||||||||
Other
operating income
|
2.4 | 2.4 | 1.5 | 1.1 | 1.7 | |||||||||||||||
Share
of results of jointly controlled entities
|
0.9 | -0.7 | 0.5 | -3.0 | -2.4 | |||||||||||||||
EBITDA
|
80.7 | 30.6 | 59.2 | 32.0 | 55.3 | |||||||||||||||
Impairment
losses in jointly controlled activities
|
0.0 | 0.0 | 0.0 | -20.0 | 0.0 | |||||||||||||||
Depreciation
and impairment losses
|
-31.8 | -33.5 | -35.0 | -32.4 | -35.0 | |||||||||||||||
Operating
profit (EBIT)
|
48.9 | -2.9 | 24.2 | -20.4 | 20.3 | |||||||||||||||
Financial
items
|
-9.7 | -29.6 | -19.8 | -9.7 | -17.7 | |||||||||||||||
Profit
before tax
|
39.2 | -32.5 | 4.4 | -30.1 | 2.6 | |||||||||||||||
Tax
|
0.4 | -1.1 | -2.3 | 4.6 | -0.3 | |||||||||||||||
Net
profit
|
39.6 | -33.6 | 2.1 | -25.5 | 2.3 | |||||||||||||||
Earnings
per share, EPS
|
||||||||||||||||||||
Earnings
per share, EPS (USD)
|
0.6 | -0.5 | 0.0 | -0.4 | 0.0 |
ANNOUNCEMENT
NO. 6 – 2010
|
||
20
MAY 2010
|
TORM
– FIRST QUARTER REPORT 2010
|
13/
19
|
Million
USD
|
31
Mar 2010
|
31
Mar 2009
|
31
Dec 2009
|
|||||||||
NON-CURRENT
ASSETS
|
||||||||||||
Intangible
assets
|
||||||||||||
Goodwill
|
89.2 | 89.2 | 89.2 | |||||||||
Other
intangible assets
|
2.2 | 2.4 | 2.2 | |||||||||
Total
intangible assets
|
91.4 | 91.6 | 91.4 | |||||||||
Tangible
fixed assets
|
||||||||||||
Land
and buildings
|
3.7 | 3.6 | 3.7 | |||||||||
Vessels
and capitalized dry-docking
|
2,358.9 | 2,421.4 | 2,390.4 | |||||||||
Prepayments
on vessels
|
295.0 | 273.0 | 273.9 | |||||||||
Other
plant and operating equipment
|
9.9 | 9.9 | 10.7 | |||||||||
Total
tangible fixed assets
|
2,667.5 | 2,707.9 | 2,678.7 | |||||||||
Financial
assets
|
||||||||||||
Investment
in jointly controlled entities
|
120.6 | 134.6 | 123.0 | |||||||||
Loans
to jointly controlled entities
|
37.7 | 40.9 | 38.7 | |||||||||
Other
investments
|
3.0 | 5.4 | 3.2 | |||||||||
Other
financial assets
|
6.0 | 27.8 | 8.5 | |||||||||
Total
financial assets
|
167.3 | 208.7 | 173.4 | |||||||||
TOTAL
NON-CURRENT ASSETS
|
2,926.2 | 3,008.2 | 2,943.5 | |||||||||
CURRENT
ASSETS
|
||||||||||||
Bunkers
|
26.5 | 19.0 | 24.6 | |||||||||
Freight
receivables, etc.
|
56.8 | 73.5 | 62.1 | |||||||||
Other
receivables
|
13.0 | 61.1 | 16.8 | |||||||||
Other
financial assets
|
0.0 | 10.7 | 0.4 | |||||||||
Prepayments
|
16.9 | 15.4 | 13.6 | |||||||||
Cash
and cash equivalents
|
186.3 | 98.7 | 121.8 | |||||||||
299.5 | 278.4 | 239.3 | ||||||||||
Assets
held for sale
|
0.0 | 0.0 | 44.4 | |||||||||
TOTAL
CURRENT ASSETS
|
299.5 | 278.4 | 283.7 | |||||||||
TOTAL
ASSETS
|
3,225.7 | 3,286.6 | 3,227.2 |
ANNOUNCEMENT
NO. 6 – 2010
|
||
20
MAY 2010
|
TORM
– FIRST QUARTER REPORT 2010
|
14/
19
|
Million
USD
|
31
Mar 2010
|
31
Mar 2009
|
31
Dec 2009
|
EQUITY
|
|||
Common
shares
|
61.1
|
61.1
|
61.1
|
Treasury
shares
|
-17.9
|
-18.1
|
-18.1
|
Revaluation
reserves
|
-2.4
|
-1.1
|
-2.2
|
Retained
profit
|
1,208.8
|
1,252.4
|
1,205.1
|
Proposed
dividends
|
0.0
|
55.1
|
0.0
|
Hedging
reserves
|
-6.0
|
-12.7
|
-3.3
|
Translation
reserves
|
4.1
|
4.0
|
4.1
|
TOTAL
EQUITY
|
1,247.7
|
1,340.7
|
1,246.7
|
LIABILITIES
|
|||
Non-current
liabilities
|
|||
Deferred
tax liability
|
54.8
|
55.0
|
55.0
|
Mortgage
debt and bank loans
|
1,631.3
|
1,501.7
|
1,629.2
|
Finance
lease liabilities
|
31.6
|
0.0
|
31.7
|
Acquired
liabilities related to options on vessels
|
1.5
|
3.4
|
1.9
|
Acquired
time charter contracts
|
0.0
|
2.1
|
0.1
|
TOTAL
NON-CURRENT LIABILITIES
|
1,719.2
|
1,562.2
|
1,717.9
|
Current
liabilities
|
|||
Mortgage
debt and bank loans
|
143.2
|
212.4
|
141.5
|
Finance
lease liabilities
|
1.8
|
0.0
|
1.8
|
Trade
payables
|
27.3
|
28.8
|
25.0
|
Current
tax liabilities
|
3.2
|
7.9
|
5.7
|
Other
liabilities
|
80.1
|
122.0
|
82.9
|
Acquired
liabilities related to options on vessels
|
1.8
|
1.7
|
1.8
|
Acquired
time charter contracts
|
1.4
|
9.7
|
3.8
|
Deferred
income
|
0.0
|
1.2
|
0.1
|
TOTAL
CURRENT LIABILITIES
|
258.8
|
383.7
|
262.6
|
TOTAL
LIABILITIES
|
1,978.0
|
1,945.9
|
1,980.5
|
TOTAL
EQUITY AND LIABILITIES
|
3,225.7
|
3,286.6
|
3,227.2
|
ANNOUNCEMENT
NO. 6 – 2010
|
||
20
MAY 2010
|
TORM
– FIRST QUARTER REPORT 2010
|
15/
19
|
Million
USD
|
Common
|
Treasury
|
Retained
|
Proposed
|
Revaluation
|
Hedging
|
Translation
|
Total
|
shares
|
shares
|
profit
|
dividends
|
reserves
|
reserves
|
reserves
|
||
Equity
at 1 January 2010
|
61.1
|
-18.1
|
1,205.1
|
0.0
|
-2.2
|
-3.3
|
4.1
|
1,246.7
|
Changes
in equity Q1 2010:
|
||||||||
Disposal
treasury shares, cost
|
-
|
0.2
|
-
|
-
|
-
|
-
|
-
|
0.2
|
Gain/loss
from disposal treasury shares
|
-
|
-
|
-0.2
|
-
|
-
|
-
|
-
|
-0.2
|
Share-based
compensation
|
-
|
-
|
1.6
|
-
|
-
|
-
|
-
|
1.6
|
Comprehensive
income for the period
|
-
|
-
|
2.3
|
-
|
-0.2
|
-2.7
|
-
|
-0.6
|
Total
changes in equity Q1 2010
|
0.0
|
0.2
|
3.7
|
0.0
|
-0.2
|
-2.7
|
0.0
|
1.0
|
Equity
at 31 March 2010
|
61.1
|
-17.9
|
1,208.8
|
0.0
|
-2.4
|
-6.0
|
4.1
|
1,247.7
|
ANNOUNCEMENT
NO. 6 – 2010
|
||
20
MAY 2010
|
TORM
– FIRST QUARTER REPORT 2010
|
16/
19
|
Million
USD
|
Common
|
Treasury
|
Retained
|
Proposed
|
Revaluation
|
Hedging
|
Translation
|
Total
|
shares
|
shares
|
profit
|
dividends
|
reserves
|
reserves
|
reserves
|
||
Equity
at 1 January 2009
|
61.1
|
-18.1
|
1,209.5
|
55.1
|
-0.1
|
-32.7
|
4.1
|
1,278.9
|
Changes
in equity Q1 2009:
|
||||||||
Disposal
treasury shares, cost
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
0.0
|
Gain/loss
from disposal treasury shares
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
0.0
|
Share-based
compensation
|
-
|
-
|
3.3
|
-
|
-
|
-
|
-
|
3.3
|
Comprehensive
income for the period
|
-
|
-
|
39.6
|
-
|
-1.0
|
20.0
|
-0.1
|
58.5
|
Total
changes in equity Q1 2009
|
0.0
|
0.0
|
42.9
|
0.0
|
-1.0
|
20.0
|
-0.1
|
61.8
|
Equity
at 31 March 2009
|
61.1
|
-18.1
|
1,252.4
|
55.1
|
-1.1
|
-12.7
|
4.0
|
1,340.7
|
ANNOUNCEMENT
NO. 6 – 2010
|
||
20
MAY 2010
|
TORM
– FIRST QUARTER REPORT 2010
|
17/
19
|
Million
USD
|
Q1 2010 | Q1 2009 | 2009 | |||||||||
Cash
flow from operating activities
|
||||||||||||
Operating
profit
|
20.3 | 48.9 | 49.8 | |||||||||
Adjustments:
|
||||||||||||
Reversal
of profit from sale of vessels
|
-18.2 | 0.0 | -33.1 | |||||||||
Reversal
of depreciation and impairment losses
|
35.0 | 31.8 | 132.7 | |||||||||
Reversal
of impairment of jointly controlled entities
|
0.0 | 0.0 | 20.0 | |||||||||
Reversal
of share of results of jointly controlled entities
|
2.4 | -0.9 | 2.3 | |||||||||
Reversal
of other non-cash movements
|
-4.0 | -0.3 | 1.3 | |||||||||
Dividends
received
|
0.0 | 0.0 | 0.1 | |||||||||
Dividends
received from joint controlled entities
|
0.3 | 0.7 | 3.0 | |||||||||
Interest
received and exchange rate gains
|
0.1 | 1.8 | 5.1 | |||||||||
Interest
paid and exchange rate losses
|
-14.2 | -17.6 | -56.9 | |||||||||
Income
taxes paid/repaid
|
-2.9 | -1.7 | -2.7 | |||||||||
Change
in bunkers, accounts receivables and payables
|
2.1 | -1.5 | -5.3 | |||||||||
Net
cash flow from operating activities
|
20.9 | 61.2 | 116.3 | |||||||||
Cash
flow from investing activities
|
||||||||||||
Investment
in tangible fixed assets
|
-23.6 | -129.5 | -288.8 | |||||||||
Investment
in equity interests and securities
|
0.0 | 0.0 | 0.0 | |||||||||
Loans
to jointly controlled entities
|
1.1 | 1.3 |