TORM A/S
(registrant)
|
||
Dated: November 8, 2013
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By:
|
/s/ Jacob Meldgaard
Name: Jacob Meldgaard
Title: Chief Executive Officer
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Third quarter report 2013
|
"The results for the third quarter of 2013 were in line with our expectations as TORM continued to benefit from improving market fundamentals and a strong operational platform. Our long-term view of the product tanker market remains positive. EBITDA for the first nine months of 2013 was USD 71 million, which was an improvement of USD 112 million compared to last year," says CEO Jacob Meldgaard. TORM realized a positive EBITDA of USD 11 million and a loss before tax of USD 40 million in the third quarter of 2013.
|
·
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EBITDA for the third quarter of 2013 was a gain of USD 11m (Q3 2012: USD -11m). The result before tax for the third quarter of 2013 was a loss of USD 40m (USD -78m). Cash flow from operating activities after interest payments was positive with USD 9m in the third quarter of 2013 (USD 6m).
|
·
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In the third quarter of 2013, the product tanker freight rates were at seasonally low levels although the product tanker segment benefitted from stronger market fundamentals compared to the same period of 2012. TORM's largest segment, MRs, achieved spot rates of USD/day 14,585 in the third quarter of 2013, which is up 37% year-on-year. The Tanker Division reported an EBITDA of USD 22m in the third quarter of 2013 (USD -8m).
|
·
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The freight rates for the relevant bulk segments stayed at depressed levels until the end of the third quarter of 2013, where the seasonal restocking of especially iron ore in China commenced. TORM's largest segment, Panamax, achieved TCE-earnings of USD/day 8,128, which is at par with the second quarter of 2013. The Bulk Division reported an EBITDA in the third quarter of 2013 of USD -11m (USD -3m).
|
·
|
The book value of the fleet was USD 1,880m as of 30 September 2013. Based on broker valuations, TORM's fleet had a market value of USD 1,207m as of 30 September 2013. In accordance with IFRS, TORM estimates the product tanker fleet's total long-term earning potential each quarter based on discounted future cash flow. The estimated value of the fleet as of 30 September 2013 supports the carrying amount.
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·
|
Net interest-bearing debt amounted to USD 1,725m as at 30 September 2013, compared to USD 1,852m as at 30 June 2013. The decrease in the third quarter of 2013 is primarily a result of repayment of debt in connection with the delivery of the five vessels held for sale.
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·
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As of 30 September 2013, TORM's available liquidity was USD 99m consisting of USD 31m in cash and USD 68m in undrawn credit facilities. There are no newbuildings on order or CAPEX commitments related hereto.
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·
|
Equity amounted to USD 190m as at 30 September 2013, equivalent to USD 0.3 per share (excluding treasury shares), giving TORM an equity ratio of 9%.
|
·
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By 30 September 2013, TORM had covered 20% of the tanker earning days in the fourth quarter of 2013 at USD/day 14,003 and 3% of the earning days in 2014 at USD/day 15,708. 55% of the bulk earning days in the fourth quarter of 2013 were covered at USD/day 11,558 and 12% of the 2014 earning days at USD/day 18,140.
|
·
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For the full year 2013, TORM has narrowed the forecasts to a positive EBITDA of USD 90-100m and a loss before tax of USD 110-120m. The forecasts are before any potential further vessel sales or impairment charges. TORM expects to remain in compliance with the financial covenants for 2013. In addition, TORM expects to be operational cash flow positive after all interest payments. As at 30 September 2013, 5,025 earning days for the fourth quarter of 2013 were unfixed meaning that a change in freight rates of USD/day 1,000 will impact the profit before tax by USD 5m.
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Conference call
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Contact TORM A/S
|
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TORM will be hosting a conference call for financial
analysts and investors at 3 pm CET today. Please dial
in 10 minutes before the conference is due to start
on +45 3271 4607 (from Europe) or +1 877 491 0064
(from the USA). The presentation can be downloaded
from www.torm.com.
|
Tuborg Havnevej 18, DK-2900 Hellerup, Denmark
Tel.: +45 39 17 92 00 / Fax: +45 39 17 93 93, www.torm.com
Jacob Meldgaard, CEO, tel.: +45 39 17 92 00
Mads Peter Zacho, CFO, tel.: +45 39 17 92 00
Christian Søgaard-Christensen, IR, tel.: +45 30 76 12 88
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Announcement no. 16 / 5 November 2013
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Third quarter report 2013
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Page 1 of 24
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Key figures
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||||||||||||||||||||
Q1-Q3 | Q1-Q3 | ||||||||||||||||||||
USDm
|
Q3 2013 | Q3 2012 | 2013 | 2012 | 2012 | ||||||||||||||||
Income statement
|
|||||||||||||||||||||
Revenue
|
231.7 | 256.0 | 799.3 | 838.9 | 1,121.2 | ||||||||||||||||
Time charter equivalent earnings (TCE)
|
96.9 | 109.8 | 346.3 | 364.4 | 465.7 | ||||||||||||||||
Gross profit
|
24.6 | 3.1 | 113.0 | 31.0 | -92.8 | ||||||||||||||||
EBITDA
|
10.8 | -11.2 | 71.4 | -41.2 | -194.5 | ||||||||||||||||
Operating profit (EBIT)
|
-21.1 | -46.4 | -28.9 | -186.0 | -448.4 | ||||||||||||||||
Profit/(loss) before tax
|
-40.0 | -77.6 | -86.0 | -288.2 | -579.0 | ||||||||||||||||
Net profit/(loss)
|
-40.2 | -78.5 | -86.7 | -289.3 | -580.6 | ||||||||||||||||
Balance sheet
|
|||||||||||||||||||||
Total assets
|
2,103.4 | 2,507.4 | 2,103.4 | 2,507.4 | 2,355.3 | ||||||||||||||||
Equity
|
190.4 | 358.3 | 190.4 | 358.3 | 267.3 | ||||||||||||||||
Total liabilities
|
1,913.0 | 2,149.1 | 1,913.0 | 2,149.1 | 2,088.0 | ||||||||||||||||
Invested capital
|
1,903.2 | 2,204.4 | 1,903.2 | 2,204.4 | 2,122.9 | ||||||||||||||||
Net interest bearing debt
|
1,724.9 | 1,858.2 | 1,724.9 | 1,858.2 | 1,867.9 | ||||||||||||||||
Cash flow
|
|||||||||||||||||||||
From operating activities
|
8.8 | 5.6 | 47.2 | 5.6 | -99.5 | ||||||||||||||||
From investing activities
|
120.8 | -7.9 | 105.1 | -7.9 | 0.3 | ||||||||||||||||
Thereof investment in tangible fixed assets
|
-13.2 | -8.0 | -29.6 | -8.0 | -59.4 | ||||||||||||||||
From financing activities
|
-124.3 | -1.9 | -150.1 | -1.9 | 42.0 | ||||||||||||||||
Total net cash flow
|
5.3 | -4.2 | 2.2 | -4.2 | -57.2 | ||||||||||||||||
Key financial figures
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|||||||||||||||||||||
Gross margins:
|
|||||||||||||||||||||
TCE
|
41.8 | % | 42.9 | % | 43.3 | % | 43.4 | % | 41.5 | % | |||||||||||
Gross profit
|
10.6 | % | 1.2 | % | 14.1 | % | 3.7 | % | -8.3 | % | |||||||||||
EBITDA
|
4.7 | % | -4.4 | % | 8.9 | % | -4.9 | % | -17.3 | % | |||||||||||
Operating profit
|
-9.1 | % | -18.1 | % | -3.6 | % | -22.2 | % | -40.0 | % | |||||||||||
Return on Equity (RoE) (p.a.)*)
|
-70.3 | % | -62.7 | % | -75.8 | % | -75.9 | % | -127.4 | % | |||||||||||
Return on Invested Capital (RoIC) (p.a.)**)
|
-4.2 | % | -8.0 | % | -2.9 | % | -10.5 | % | -19.7 | % | |||||||||||
Equity ratio
|
9.1 | % | 14.3 | % | 9.1 | % | 14.3 | % | 11.4 | % | |||||||||||
Exchange rate USD/DKK, end of period
|
5.52 | 5.77 | 5.52 | 5.77 | 5.66 | ||||||||||||||||
Exchange rate USD/DKK, average
|
5.63 | 5.95 | 5.66 | 5.80 | 5.79 | ||||||||||||||||
Share related key figures
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|||||||||||||||||||||
Earnings per share, EPS
|
USD
|
-0.1 | -1.1 | -0.1 | -4.2 | -3.3 | |||||||||||||||
Diluted earnings per share, EPS
|
USD
|
-0.1 | -1.1 | -0.1 | -4.2 | -3.3 | |||||||||||||||
Cash flow per share, CFPS
|
USD
|
0.0 | 0.1 | 0.1 | 0.1 | -0.6 | |||||||||||||||
Share price, end of period (per share of DKK 0.01 each ***)
|
DKK
|
1.5 | 2.8 | 1.5 | 2.8 | 1.7 | |||||||||||||||
Number of shares, end of period
|
Million
|
728.0 | 72.8 | 728.0 | 72.8 | 728.0 | |||||||||||||||
Number of shares (excl. treasury shares), average
|
Million
|
721.3 | 69.6 | 721.3 | 69.6 | 178.2 | |||||||||||||||
*) Earnings/losses from sale of vessels are not annualized when calculating the return on equity.
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|||||||||||||||||||||
**) Earnings/losses from sale of vessels are not annualized when calculating the Return on Invested Capital.
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|||||||||||||||||||||
***) Q3-2012: DKK 5.00 each.
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Announcement no. 16 / 5 November 2013
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Third quarter report 2013
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2 of 244
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Results
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The result before depreciation (EBITDA) for the third quarter of 2013 was a gain of USD 11m (USD -11m). The third quarter of 2013 had mark-to-market non-cash adjustments of USD 0m (USD 6m). The result before tax for the third quarter of 2013 was a loss of USD 40m (USD -78m).
The Tanker Division reported an operating result of USD -9m in the third quarter of 2013 (USD -42m).
The Bulk Division reported an operating result in the third quarter of 2013 of USD -12m (USD -4m).
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Q3 2013
|
Q1-Q3 2013
|
|||||||
Tanker
|
Bulk
|
Not
|
Tanker
|
Bulk
|
Not
|
|||
USDm
|
Division
|
Division
|
allocated
|
Total
|
Division
|
Division
|
allocated
|
Total
|
Revenue
|
180.6
|
51.1
|
0.0
|
231.7
|
600.8
|
198.5
|
0.0
|
799.3
|
Port expenses, bunkers and commissions
|
-100.0
|
-35.4
|
0.0
|
-135.4
|
-318.2
|
-135.5
|
0.0
|
-453.7
|
Freight and bunker derivatives
|
0.1
|
0.5
|
0.0
|
0.6
|
0.1
|
0.6
|
0.0
|
0.7
|
Time charter equivalent earnings
|
80.7
|
16.2
|
0.0
|
96.9
|
282.7
|
63.6
|
0.0
|
346.3
|
Charter hire
|
-4.4
|
-24.2
|
0.0
|
-28.6
|
-17.2
|
-84.9
|
0.0
|
-102.1
|
Operating expenses
|
-42.8
|
-0.9
|
0.0
|
-43.7
|
-128.5
|
-2.7
|
0.0
|
-131.2
|
Gross profit (Net earnings from shipping activities)
|
33.5
|
-8.9
|
0.0
|
24.6
|
137.0
|
-24.0
|
0.0
|
113.0
|
Administrative expenses
|
-12.0
|
-2.3
|
0.0
|
-14.3
|
-36.1
|
-6.8
|
0.0
|
-42.9
|
Other operating income
|
0.5
|
0.0
|
0.0
|
0.5
|
0.8
|
0.1
|
0.0
|
0.9
|
Share of results of jointly controlled entities
|
0.0
|
0.0
|
0.0
|
0.0
|
0.4
|
0.0
|
0.0
|
0.4
|
EBITDA
|
22.0
|
-11.2
|
0.0
|
10.8
|
102.1
|
-30.7
|
0.0
|
71.4
|
Impairment losses on tangible and intangible assets
|
0.0
|
0.0
|
0.0
|
0.0
|
-5.0
|
0.0
|
0.0
|
-5.0
|
Amortizations and depreciation
|
-31.2
|
-0.7
|
0.0
|
-31.9
|
-93.1
|
-2.2
|
0.0
|
-95.3
|
Operating profit (EBIT)
|
-9.2
|
-11.9
|
0.0
|
-21.1
|
4.0
|
-32.9
|
0.0
|
-28.9
|
Financial income
|
-
|
-
|
0.4
|
0.4
|
-
|
-
|
3.2
|
3.2
|
Financial expenses
|
-
|
-
|
-19.3
|
-19.3
|
-
|
-
|
-60.3
|
-60.3
|
Profit/(loss) before tax
|
-
|
-
|
-18.9
|
-40.0
|
-
|
-
|
-57.1
|
-86.0
|
Tax
|
-
|
-
|
-0.2
|
-0.2
|
-
|
-
|
-0.7
|
-0.7
|
Net profit/(loss) for the period
|
-
|
-
|
-19.1
|
-40.2
|
-
|
-
|
-57.8
|
-86.7
|
Announcement no. 16 / 5 November 2013
|
Third quarter report 2013
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3 of 244
|
Outlook and coverage
|
2013 forecast
|
USDm
|
||
EBITDA
|
90
|
to
|
100
|
Profit before tax
|
-110
|
to
|
-120
|
A change in freight rates of USD/day 1,000 impacts forecasts by
|
USD ±5M |
Announcement no. 16 / 5 November 2013
|
Third quarter report 2013
|
4 of 244
|
2013
|
2014
|
2015
|
2013
|
2014
|
2015
|
|||||||||||||||||||
Owned days
|
||||||||||||||||||||||||
LR2
|
651 | 2,904 | 2,880 | |||||||||||||||||||||
LR1
|
590 | 2,497 | 2,495 | |||||||||||||||||||||
MR
|
2,997 | 12,223 | 12,168 | |||||||||||||||||||||
Handysize
|
962 | 3,920 | 3,883 | |||||||||||||||||||||
Tanker Division
|
5,201 | 21,544 | 21,425 | |||||||||||||||||||||
Panamax
|
168 | 682 | 726 | |||||||||||||||||||||
Handymax
|
- | - | - | |||||||||||||||||||||
Bulk Division
|
168 | 682 | 726 | |||||||||||||||||||||
Total
|
5,369 | 22,226 | 22,151 | |||||||||||||||||||||
T/C-in days at fixed rate
|
T/C-in costs, USD/day
|
|||||||||||||||||||||||
LR2
|
- | - | - | - | - | - | ||||||||||||||||||
LR1
|
- | - | - | - | - | - | ||||||||||||||||||
MR
|
275 | 726 | 726 | 14,166 | 15,145 | 15,895 | ||||||||||||||||||
Handysize
|
- | - | - | - | - | - | ||||||||||||||||||
Tanker Division
|
275 | 726 | 726 | 14,166 | 15,145 | 15,895 | ||||||||||||||||||
Panamax
|
662 | 1,816 | 1,676 | 11,577 | 12,393 | 12,225 | ||||||||||||||||||
Handymax
|
147 | - | - | 9,594 | - | - | ||||||||||||||||||
Bulk Division
|
809 | 1,816 | 1,676 | 11,216 | 12,393 | 12,225 | ||||||||||||||||||
Total
|
1,084 | 2,542 | 2,402 | 11,964 | 13,179 | 13,335 | ||||||||||||||||||
T/C-in days at floating rate
|
||||||||||||||||||||||||
LR2
|
183 | 721 | 726 | |||||||||||||||||||||
LR1
|
- | - | - | |||||||||||||||||||||
MR
|
- | - | - | |||||||||||||||||||||
Handysize
|
- | - | - | |||||||||||||||||||||
Tanker Division
|
183 | 721 | 726 | |||||||||||||||||||||
Panamax
|
16 | 48 | - | |||||||||||||||||||||
Handymax
|
91 | 363 | 363 | |||||||||||||||||||||
Bulk Division
|
108 | 411 | 363 | |||||||||||||||||||||
Total
|
291 | 1,132 | 1,089 | |||||||||||||||||||||
Total physical days
|
Covered days
|
|||||||||||||||||||||||
LR2
|
834 | 3,625 | 3,606 | 153 | 329 | 6 | ||||||||||||||||||
LR1
|
590 | 2,497 | 2,495 | 206 | 174 | - | ||||||||||||||||||
MR
|
3,272 | 12,949 | 12,894 | 659 | 33 | - | ||||||||||||||||||
Handysize
|
962 | 3,920 | 3,883 | 100 | 194 | - | ||||||||||||||||||
Tanker Division
|
5,659 | 22,991 | 22,877 | 1,118 | 730 | 6 | ||||||||||||||||||
Panamax
|
846 | 2,546 | 2,402 | 426 | - | - | ||||||||||||||||||
Handymax
|
239 | 363 | 363 | 175 | 363 | 363 | ||||||||||||||||||
Bulk Division
|
1,085 | 2,909 | 2,765 | 601 | 363 | 363 | ||||||||||||||||||
Total
|
6,744 | 25,899 | 25,642 | 1,719 | 1,093 | 369 | ||||||||||||||||||
Covered, %
|
Coverage rates, USD/day
|
|||||||||||||||||||||||
LR2
|
18 | % | 9 | % | 0 | % | 15,911 | 15,111 | 14,496 | |||||||||||||||
LR1
|
35 | % | 7 | % | 0 | % | 13,153 | 15,838 | - | |||||||||||||||
MR
|
20 | % | 0 | % | 0 | % | 13,859 | 13,360 | - | |||||||||||||||
Handysize
|
10 | % | 5 | % | 0 | % | 13,791 | 17,000 | - | |||||||||||||||
Tanker Division
|
20 | % | 3 | % | 0 | % | 14,003 | 15,708 | 14,496 | |||||||||||||||
Panamax
|
50 | % | 0 | % | 0 | % | 10,494 | - | - | |||||||||||||||
Handymax
|
73 | % | 100 | % | 100 | % | 14,144 | 18,140 | 18,287 | |||||||||||||||
Bulk Division
|
55 | % | 12 | % | 13 | % | 11,558 | 18,140 | 18,287 | |||||||||||||||
Total
|
25 | % | 4 | % | 1 | % | 13,148 | 16,516 | 18,228 |
Contracts not included above
|
0.0 | |||||||||||||||||||||||
Contracts include above
|
0.0 |
Announcement no. 16 / 5 November 2013
|
Third quarter report 2013
|
5 of 244
|
Tanker Division
|
Tanker Division
|
Q3 12
|
Q4 12
|
Q1 13
|
Q2 13
|
Q3 13
|
Change
|
12 month
|
Q3 12
|
avg.
|
||||||
- Q3 13
|
|||||||
LR2 (Aframax, 90-110,000 dwt)
|
|||||||
Available earning days
|
989
|
961
|
881
|
891
|
874
|
-12%
|
|
Spot rates 1)
|
13,581
|
14,383
|
14,245
|
15,346
|
11,350
|
-16%
|
13,852
|
TCE per earning day 2)
|
11,082
|
10,025
|
14,595
|
15,711
|
10,775
|
-3%
|
12,727
|
Operating days
|
1,012
|
1,001
|
900
|
850
|
798
|
-21%
|
|
Operating expenses per operating day 3)
|
6,800
|
6,437
|
6,586
|
7,718
|
7,697
|
13%
|
7,065
|
LR1 (Panamax 75-85,000 dwt)
|
|||||||
Available earning days
|
1,716
|
1,296
|
898
|
637
|
644
|
-62%
|
|
Spot rates 1)
|
13,512
|
11,856
|
16,796
|
14,252
|
15,282
|
13%
|
14,206
|
TCE per earning day 2)
|
12,723
|
11,424
|
17,509
|
12,674
|
16,124
|
27%
|
14,097
|
Operating days
|
644
|
644
|
630
|
637
|
644
|
0%
|
|
Operating expenses per operating day 3)
|
6,136
|
6,845
|
6,930
|
6,805
|
6,568
|
7%
|
6,786
|
MR (45,000 dwt)
|
|||||||
Available earning days
|
4,176
|
3,833
|
3,722
|
3,744
|
3,583
|
-14%
|
|
Spot rates 1)
|
10,612
|
14,165
|
17,647
|
17,060
|
14,585
|
37%
|
15,865
|
TCE per earning day 2)
|
9,843
|
12,655
|
17,210
|
16,457
|
13,909
|
41%
|
15,053
|
Operating days
|
3,588
|
3,596
|
3,510
|
3,549
|
3,477
|
-3%
|
|
Operating expenses per operating day 3)
|
6,825
|
7,355
|
7,189
|
7,164
|
6,999
|
3%
|
7,178
|
Handy (35,000 dwt)
|
|||||||
Available earning days
|
1,007
|
1,009
|
986
|
981
|
979
|
-3%
|
|
Spot rates 1)
|
11,263
|
13,211
|
15,231
|
10,700
|
11,389
|
1%
|
12,641
|
TCE per earning day 2)
|
10,873
|
12,617
|
15,987
|
10,328
|
11,201
|
3%
|
12,539
|
Operating days
|
1,012
|
1,012
|
990
|
1,001
|
1,012
|
0%
|
|
Operating expenses per operating day 3)
|
6,165
|
6,579
|
6,859
|
7,028
|
6,973
|
13%
|
6,859
|
Announcement no. 16 / 5 November 2013
|
Third quarter report 2013
|
6 of 244
|
Bulk Division
|
Bulk Division
|
Q3 12
|
Q4 12
|
Q1 13
|
Q2 13
|
Q2 13
|
Change
|
12 month
|
Q3 12
|
avg.
|
||||||
- Q3 13
|
|||||||
Panamax (60-80,000 dwt)
|
|||||||
Available earning days
|
1,205
|
1,726
|
2,072
|
2,312
|
1,617
|
34%
|
|
TCE per earning day 1)
|
10,857
|
7,541
|
6,149
|
8,156
|
8,128
|
-25%
|
7,475
|
Operating days
|
184
|
184
|
180
|
182
|
184
|
0%
|
|
Operating expenses per operating day 2)
|
4,212
|
5,271
|
4,660
|
5,364
|
4,750
|
13%
|
5,012
|
Handymax (40-55,000 dwt)
|
|||||||
Available earning days
|
757
|
762
|
848
|
1,105
|
736
|
-3%
|
|
TCE per earning day 1)
|
9,916
|
11,076
|
7,504
|
9,881
|
11,959
|
21%
|
10,004
|
Operating days
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Operating expenses per operating day 2)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Announcement no. 16 / 5 November 2013
|
Third quarter report 2013
|
7 of 244
|
Fleet development
|
# of vessels
|
Newbuildings and T/C-in deliveries with
|
|||||||||||||||||||||||
Current fleet
|
a period >= 12 months
|
|||||||||||||||||||||||
Q2 2013 |
Changes
|
Q3 2013 | 2013 | 2014 | 2015 | |||||||||||||||||||
Owned vessels
|
||||||||||||||||||||||||
LR2
|
8.0 | - | 8.0 | |||||||||||||||||||||
LR1
|
7.0 | - | 7.0 | |||||||||||||||||||||
MR
|
39.0 | -5.0 | 34.0 | |||||||||||||||||||||
Handysize
|
11.0 | - | 11.0 | |||||||||||||||||||||
Tanker Division
|
65.0 | -5.0 | 60.0 | - | - | - | ||||||||||||||||||
Panamax
|
2.0 | - | 2.0 | |||||||||||||||||||||
Handymax
|
- | - | ||||||||||||||||||||||
Bulk Division
|
2.0 | - | 2.0 | |||||||||||||||||||||
TotaI
|
67.0 | -5.0 | 62.0 | - | - | - | ||||||||||||||||||
T/C-in vessels with contract period >=12 months
|
||||||||||||||||||||||||
LR2
|
2.0 | - | 2.0 | |||||||||||||||||||||
LR1
|
- | - | - | |||||||||||||||||||||
MR
|
3.0 | - | 3.0 | |||||||||||||||||||||
Handysize
|
- | - | - | |||||||||||||||||||||
Tanker Division
|
5.0 | - | 5.0 | - | - | - | ||||||||||||||||||
Panamax
|
7.0 | -1.0 | 6.0 | -1.0 | ||||||||||||||||||||
Handymax
|
1.0 | - | 1.0 | |||||||||||||||||||||
Bulk Division
|
8.0 | -1.0 | 7.0 | -1.0 | - | - | ||||||||||||||||||
TotaI
|
13.0 | -1.0 | 12.0 | -1.0 | - | - | ||||||||||||||||||
T/C-in vessels with contract period < 12 months
|
||||||||||||||||||||||||
LR2
|
||||||||||||||||||||||||
LR1
|
||||||||||||||||||||||||
MR
|
||||||||||||||||||||||||
Handysize
|
||||||||||||||||||||||||
Tanker Division
|
- | - | - | |||||||||||||||||||||
Panamax
|
14.0 | -9.0 | 5.0 | |||||||||||||||||||||
Handymax
|
8.0 | -3.0 | 5.0 | |||||||||||||||||||||
Bulk Division
|
22.0 | -12.0 | 10.0 | |||||||||||||||||||||
Total
|
22.0 | -12.0 | 10.0 | |||||||||||||||||||||
Pools/commercial management
|
19.0 | 6.0 | 25.0 | |||||||||||||||||||||
Total fleet
|
121.0 | -12.0 | 109.0 |
Announcement no. 16 / 5 November 2013
|
Third quarter report 2013
|
8 of 244
|
Accounting policies
|
The interim report for the period 1 January – 30 September 2013 is presented in accordance with IAS 34 “Interim Financial Reporting” as adopted by the EU and additional Danish disclosure requirements for interim reports of listed companies. The interim report has been prepared using the accounting policies as for the Annual Report for 2012. The accounting policies are described in more detail in the Annual Report for 2012. The interim report for the first nine months of 2013 is unaudited, in line with the normal practice.
|
Income statement
|
The gross profit for the third quarter of 2013 was USD 25m (USD 3m).
Administrative costs in the third quarter of 2013 were sustained at USD 14m (USD 15m) as a result of the Company’s cost program.
The result before depreciation (EBITDA) for the third quarter of 2013 was a gain of USD 11m (USD -11m).
Depreciation in the third quarter of 2013 was USD 32m (USD 35m) primarily due to fewer owned vessel than in the previous year.
The primary operating result (EBIT) for the third quarter of 2013 was a loss of USD 21m (USD -46m).
The third quarter of 2013 had mark-to-market non-cash adjustments of USD 0m (USD 6m).
The third quarter of 2013 had financial expenses of USD 19m (USD 33m incl. extraordinary restructuring costs of USD 15m).
The result after tax was a loss of USD 40m in the third quarter of 2013 (USD -79m).
|
Assets
|
Total assets were down from USD 2,355m as at 31 December 2012 to USD 2,103m as at 30 September 2013. The book value of the fleet was USD 1,880m as of 30 September 2013. Based on broker valuations, TORM's fleet had a market value of USD 1,207m as of 30 September 2013. The broker valuations have increased by USD 39m during the third quarter of 2013. TORM estimates the product tanker fleet's total long-term earning potential each quarter based on future discounted cash flow in accordance with IFRS requirements. The estimated value of the fleet as at 30 September 2013 supports the book value.
|
Debt
|
Net interest-bearing debt was USD 1,725m as at 30 September 2013, compared to USD 1,852m as at 30 June 2013. The decrease in the third quarter of 2013 is primarily a result of repayment of debt in connection with the delivery of the five vessels held for sale.
As at 30 September 2013, TORM was in compliance with its financial covenants. TORM expects to remain in compliance with the financial covenants for 2013.
|
Announcement no. 16 / 5 November 2013
|
Third quarter report 2013
|
9 of 244
|
Equity
|
Equity declined in the third quarter of 2013 from USD 228m as at 30 June 2013 to USD 190m as at 30 September 2013 primarily due to the net loss during the period. Equity as a percentage of total assets was 9% as at 30 September 2013.
TORM held 6,711,792 treasury shares as at 30 September 2013, equivalent to 0.9% of the Company’s share capital. This is the same level as of 30 June 2013.
|
Liquidity
|
As of 30 September 2013, TORM's available liquidity was USD 99m consisting of USD 31m in cash and USD 68m in undrawn credit facilities. TORM has no newbuilding order book and therefore no CAPEX commitments related hereto.
|
Financial calendar
|
TORM's Annual Report for 2013 will be published on 5 March 2014. TORM's financial calendar can be found at www.torm.com/investor-relations.
|
Announcement no. 16 / 5 November 2013
|
Third quarter report 2013
|
10 of 244
|
About TORM
|
TORM is one of the world’s leading carriers of refined oil products as well as a significant player in the dry bulk market. The Company operates a fleet of approximately 110 modern vessels in cooperation with other respected shipping companies sharing 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 NASDAQ OMX Copenhagen (ticker: TORM). For further information, please visit www.torm.com.
|
Safe Harbor statements as to the future
|
Matters discussed in this company announcement may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements 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 Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate," "intend," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.
Forward-looking statements in this company announcement 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 statements 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 the Company 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, the Company cannot guarantee 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 conclusion of definitive waiver documents with our lenders, the strength of the world economy 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 the Company's operating expenses, including bunker prices, dry-docking and insurance costs, changes in the regulation of shipping operations, 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 the Company with the US Securities and Exchange Commission, including the Company's Annual Report on Form 20-F and its reports on Form 6-K.
Forward-looking statements are based on management's current expectations, and the Company is under no obligation to update or change the listed expectations unless required by law.
|
Announcement no. 16 / 5 November 2013
|
Third quarter report 2013
|
11 of 244
|
Statement by the Board of Directors and Executive Management
|
The Board and Management have today discussed and adopted this interim report for the period 1 January – 30 September 2013.
The interim report for the period 1 January – 30 September 2013 is presented in accordance with IAS 34 “Interim Financial Reporting” as adopted by the EU and additional Danish disclosure requirements for interim reports of listed companies. The interim report has been prepared using the accounting policies as for the Annual Report for 2012. The accounting policies are described in more detail in the Annual Report for 2012. The interim report for the first nine months of 2013 is unaudited, in line with the normal practice.
We believe the accounting practices used are reasonable, and that this interim report gives a true and accurate picture of the Group’s assets, debt, financial position, results and cash flow.
|
Management
|
Board of Directors
|
|
Jacob Meldgaard, CEO
Mads Peter Zacho, CFO
|
Flemming Ipsen, Chairman
Olivier Dubois, Deputy Chairman
Kari Millum Gardarnar
Alexander Green
Rasmus Johannes Hoffmann
Jon Syvertsen
|
Announcement no. 16 / 5 November 2013
|
Third quarter report 2013
|
12 of 244
|
Consolidated income statement
|
USDm
|
Q3 2013 | Q3 2012 | Q1-Q3 2013 | Q1-Q3 2012 | 2012 | ||||||||||||||||
Revenue
|
231.7 | 256.0 | 799.3 | 838.9 | 1,121.2 | ||||||||||||||||
Port expenses, bunkers and commissions
|
-135.4 | -154.2 | -453.7 | -488.0 | -665.4 | ||||||||||||||||
Freight and bunker derivatives
|
0.6 | 8.0 | 0.7 | 13.5 | 9.9 | ||||||||||||||||
Time charter equivalent earnings
|
96.9 | 109.8 | 346.3 | 364.4 | 465.7 | ||||||||||||||||
Charter hire
|
-28.6 | -64.4 | -102.1 | -209.4 | -389.6 | ||||||||||||||||
Operating expenses
|
-43.7 | -42.3 | -131.2 | -124.0 | -168.9 | ||||||||||||||||
Gross profit (Net earnings from shipping activities)
|
24.6 | 3.1 | 113.0 | 31.0 | -92.8 | ||||||||||||||||
Profit from sale of vessels
|
0.0 | 0.0 | 0.0 | -15.9 | -26.0 | ||||||||||||||||
Administrative expenses
|
-14.3 | -14.9 | -42.9 | -48.0 | -67.2 | ||||||||||||||||
Other operating income
|
0.5 | 0.4 | 0.9 | 1.3 | 0.9 | ||||||||||||||||
Share of results of jointly controlled entities
|
0.0 | 0.2 | 0.4 | -9.6 | -9.4 | ||||||||||||||||
EBITDA
|
10.8 | -11.2 | 71.4 | -41.2 | -194.5 | ||||||||||||||||
Impairment losses on jointly controlled entities
|
0.0 | 0.0 | 0.0 | -41.5 | -41.5 | ||||||||||||||||
Impairment losses on tangible and intangible assets
|
0.0 | 0.0 | -5.0 | 0.0 | -74.2 | ||||||||||||||||
Amortizations and depreciation
|
-31.9 | -35.2 | -95.3 | -103.3 | -138.2 | ||||||||||||||||
Operating profit (EBIT)
|
-21.1 | -46.4 | -28.9 | -186.0 | -448.4 | ||||||||||||||||
Financial income
|
0.4 | 1.3 | 3.2 | 8.1 | 11.8 | ||||||||||||||||
Financial expenses
|
-19.3 | -32.5 | -60.3 | -110.3 | -142.4 | ||||||||||||||||
Profit/(loss) before tax
|
-40.0 | -77.6 | -86.0 | -288.2 | -579.0 | ||||||||||||||||
Tax
|
-0.2 | -0.9 | -0.7 | -1.1 | -1.6 | ||||||||||||||||
Net profit/(loss) for the period
|
-40.2 | -78.5 | -86.7 | -289.3 | -580.6 | ||||||||||||||||
Earnings/(loss) per share, EPS
|
|||||||||||||||||||||
Earnings/(loss) per share, EPS
|
USD
|
-0.1 | -1.1 | -0.1 | -4.2 | -3.3 | |||||||||||||||
Earnings/(loss) per share, EPS
|
DKK*
|
-0.3 | -6.7 | -0.7 | -24.1 | -18.9 | |||||||||||||||
Diluted earnings/(loss) per share
|
USD
|
-0.1 | -1.1 | -0.1 | -4.2 | -3.3 | |||||||||||||||
Diluted earnings/(loss) per share
|
DKK*
|
-0.3 | -6.7 | -0.7 | -24.1 | -18.9 | |||||||||||||||
*) The key figures have been translated from USD to DKK using the average USD/DKK exchange change rate for the period in question.
|
Announcement no. 16 / 5 November 2013
|
Third quarter report 2013
|
13 of 244
|
Consolidated income statement per quarter
|
USDm
|
Q3 2013 | Q2 2013 | Q1 2013 | Q4 2012 | Q3 2012 | ||||||||||||||||
Revenue
|
231.7 | 289.4 | 278.2 | 282.3 | 256.0 | ||||||||||||||||
Port expenses, bunkers and commissions
|
-135.4 | -166.4 | -151.9 | -177.4 | -154.2 | ||||||||||||||||
Freight and bunker derivatives
|
0.6 | -0.9 | 1.0 | -3.6 | 8.0 | ||||||||||||||||
Time charter equivalent earnings
|
96.9 | 122.1 | 127.3 | 101.3 | 109.8 | ||||||||||||||||
Charter hire
|
-28.6 | -38.8 | -34.7 | -180.2 | -64.4 | ||||||||||||||||
Operating expenses
|
-43.7 | -44.4 | -43.1 | -44.9 | -42.3 | ||||||||||||||||
Gross profit (Net earnings from shipping activities)
|
24.6 | 38.9 | 49.5 | -123.8 | 3.1 | ||||||||||||||||
Profit from sale of vessels
|
0.0 | 0.0 | 0.0 | -10.1 | 0.0 | ||||||||||||||||
Administrative expenses
|
-14.3 | -14.4 | -14.2 | -19.2 | -14.9 | ||||||||||||||||
Other operating income
|
0.5 | 0.1 | 0.3 | -0.4 | 0.4 | ||||||||||||||||
Share of results of jointly controlled entities
|
0.0 | 0.2 | 0.2 | 0.2 | 0.2 | ||||||||||||||||
EBITDA
|
10.8 | 24.8 | 35.8 | -153.3 | -11.2 | ||||||||||||||||
Impairment losses on jointly controlled entities
|
0.0 | 0.0 | 0.0 | -0.1 | 0.0 | ||||||||||||||||
Impairment losses on tangible and intangible assets
|
0.0 | -5.0 | 0.0 | -74.2 | 0.0 | ||||||||||||||||
Amortizations and depreciation
|
-31.9 | -31.6 | -31.8 | -34.9 | -35.2 | ||||||||||||||||
Operating profit (EBIT)
|
-21.1 | -11.8 | 4.0 | -262.5 | -46.4 | ||||||||||||||||
Financial income
|
0.4 | 1.7 | 1.1 | 3.7 | 1.3 | ||||||||||||||||
Financial expenses
|
-19.3 | -20.0 | -21.0 | -32.1 | -32.5 | ||||||||||||||||
Profit/(loss) before tax
|
-40.0 | -30.1 | -15.9 | -290.9 | -77.6 | ||||||||||||||||