COPENHAGEN, November 21 /PRNewswire-FirstCall/ -- - Profit before
tax for the first three quarters of 2008 was USD 290 million. -
TORM forecasts a pre-tax profit for 2008 of USD 355 - 370 million
as announced on 11 August 2008, when the full-year forecast was
upgraded (announcement no. 16/2008). - TORM has unutilised credit
facilities and cash in excess of USD 700 million. - Due to the
sharp fall in oil prices from the peak in July 2008 TORM has in the
third quarter unrealized mark-to-market adjustments on FFA and
bunker hedge of USD 6 million and on financial derivatives of USD
11 million. - Equity amounted to USD 1,269 million (DKK 6,622
million) as at 30 September 2008, equivalent to USD 18.3 per share
(DKK 95.6 per share), excluding treasury shares. - The market value
of TORM's fleet, including the order book, exceeded book value by
USD 1,589 million at 30 September 2008, equalling USD 23.0 per
share (DKK 119.8 per share), excluding treasury shares. - The
market for transport of crude oil was firm during the first part of
the third quarter, while earnings in the latter part were better
for transport of refined oil products. Product tanker earnings have
dropped in the fourth quarter, although they remain at seasonably
high levels. As at 31 October 2008, TORM had covered 63% of the
remaining earning days for 2008 in the Tanker Division at USD
25,299 per day. - Bulk freight rates dropped towards the end of the
third and into the fourth quarter, primarily due to lower demand
for coal and iron ore and concern of the global economic
development. As at 31 October 2008, TORM had covered 78% of the
remaining earning days for 2008 in the Bulk Division at USD 45,550
per day. - At the end of the third quarter, the Company's net
interest bearing debt totalled USD 1,575 million. More than half of
the debt falls due in or after 2013. - As at 31 October 2008, TORM
had covered approximately 32% of the total fleet's earning days in
2009. - The historically good result in combination with the
development of the share price has led TORM to propose an interim
dividend of DKK 4.50 per share. The company will call in for an
extraordinary general meeting. - "Although the product tanker
market, TORM's principal business area, is currently doing well, we
have taken a number of risk precautions both internally and
vis-a-vis customers, suppliers and financial counterparties in
order to limit the effects if the financial crisis continues. Our
strong balance sheet and financial resources provide a solid
foundation for the Company to manoeuvre in more difficult market
conditions in 2009," announces CEO Mikael Skov. Teleconference A
teleconference and webcast (http://www.torm.com/) will take place
today, 21 November 2008, at 17:00 Copenhagen time (CET). To
participate, please call 10 minutes before the call on tel.:
+45-3271-4607 (from Europe) or +1-334-323-6201 (from the USA). A
replay of the conference will be available from TORM's website.
Financial highlights Million USD Q3 2008 Q3 2007 Q1-Q3 Q1-Q3 2007
2008 2007 Income statement Net revenue 336.6 208.1 878.2 549.4
773.6 Time charter equivalent earnings (TCE) 244.2 162.4 680.2
427.4 604.3 Gross profit 152.3 90.1 409.3 238.6 333.9 EBITDA 144.8
78.8 421.0 209.3 294.1 Operating profit 119.6 48.1 339.6 147.2
199.0 Profit before tax 91.3 37.7 289.8 776.9 804.2 Net profit 90.8
34.8 288.4 775.2 791.7 Balance sheet Total assets 3,242.5 2,875.5
3,242.5 2,875.5 2,958.9 Equity 1,268.5 1,062.7 1,268.5 1,062.7
1,081.2 Total liabilities 1,974.0 1,812.8 1,974.0 1,812.8 1,877.7
Invested capital 2,833.3 2,556.5 2,833.3 2,556.5 2,618.5 Net
interest bearing debt 1,574.7 1,504.8 1,574.7 1,504.8 1,548.3 Cash
flow From operating activities 111.2 6.3 264.1 126.2 187.9 From
investing activities 3.4 113.8 -225.2 -251.5 -356.6 Thereof
investment in tangible fixed assets -112.6 -16.5 -293.7 -160.5
-252.2 From financing activities -59.5 -455.2 -10.5 180.2 242.1 Net
cash flow 55.1 -335.1 28.4 54.9 73.4 Key financial figures Margins:
TCE 72.5% 78.0% 77.5% 77.8% 78.1% Gross profit 45.2% 43.3% 46.6%
43.4% 43.2% EBITDA 43.0% 37.9% 47.9% 38.1% 38.0% Operating profit
35.5% 23.1% 38.7% 26.8% 25.7% Return on Equity (RoE) (p.a.)*) 26.7%
11.4% 30.9% 69.9% 67.1% Return on Invested Capital (RoIC) (p.a.)**)
15.6% 7.8% 15.8% 10.2% 10.2% Equity ratio 39.1% 37.0% 39.1% 37.0%
36.5% Exchange rate USD/DKK, end of period 5.22 5.26 5.22 5.26 5.08
Exchange rate USD/DKK, average 4.97 5.41 4.91 5.54 5.44 Share
related key figures Earnings per share, EPS USD 1.3 0.5 4.2 11.2
11.4 Diluted earnings per share, DEPS USD 1.3 0.5 4.2 11.2 11.4
Cash flow per share, CFPS USD 1.6 0.1 3.8 1.8 2.7 Share price, end
of period (per share of DKK 5 each) DKK 126.2 214.2 126.2 214.2
178.2 Number of shares, end of period Mill. 72.8 72.8 72.8 72.8
72.8 Number of shares (excl. treasury shares), average Mill. 69.2
69.2 69.2 69.2 69.2 *) The gain from the sale of the Norden shares
is not annualized when calculating the Return on Equity for Q1-Q3
2007,and the gain from sale of vessels not is annualized when
calculating the Return on Equity in 2008. **)The gain from sale of
vessels is not annualized when calculating the Return on Invested
Capital for Q1-Q3 2008. Profit by division Million USD Q3 2008
Tanker Bulk Not Division Division Allocated Total Revenue 263.3
73.3 0.0 336.6 Port expenses, bunkers and commissions -74.0 -2.5
0.0 -76.5 Freight and bunkers derivatives -15.9 0.0 0.0 -15.9 Time
charter equivalent earnings 173.4 70.8 0.0 244.2 Charter hire -35.2
-15.2 0.0 -50.4 Operating expenses -38.2 -3.3 0.0 -41.5 Gross
Profit 100.0 52.3 0.0 152.3 Profit from sale of vessels 10.8 0.0
0.0 10.8 Administrative expenses -20.7 -1.9 0.0 -22.6 Other
operating income 4.3 0.0 0.0 4.3 Depreciation and impairment losses
-29.6 -1.7 0.0 -31.3 Share of results of jointly controlled
entities 3.0 0.0 3.1 6.1 Operating profit 67.8 48.7 3.1 119.6
Financial items - - -28.3 -28.3 Profit/(Loss) before tax - - -25.2
91.3 Tax - - -0.5 -0.5 Net profit - - -25.7 90.8 Table Cont.
Million USD Q1-Q3 2008 Tanker Bulk Not Division Division Allocated
Total Revenue 679.1 199.1 0.0 878.2 Port expenses, bunkers and
commissions -182.7 -7.7 0.0 -190.4 Freight and bunkers derivatives
-7.6 0.0 0.0 -7.6 Time charter equivalent earnings 488.8 191.4 0.0
680.2 Charter hire -96.9 -43.8 0.0 -140.7 Operating expenses -119.0
-11.2 0.0 -130.2 Gross Profit 272.9 136.4 0.0 409.3 Profit from
sale of vessels 10.8 52.0 0.0 62.8 Administrative expenses -56.9
-5.2 0.0 -62.1 Other operating income 11.0 0.0 0.0 11.0
Depreciation and impairment losses -87.6 -5.5 0.0 -93.1 Share of
results of jointly controlled entities 5.8 0.0 5.9 11.7 Operating
profit 156.0 177.7 5.9 339.6 Financial items - - -49.8 -49.8
Profit/(Loss) before tax - - -43.9 289.8 Tax - - -1.4 -1.4 Net
profit - - -45.3 288.4 "Not-allocated" includes the activity that
TORM owns in a 50/50 joint venture with Teekay, as well as the
activity that relates to TORMs 50% share in FR8. Tanker Division
The Tanker Division achieved an operating profit of USD 67.8
million in the third quarter of 2008 against USD 52.5 million in
the second quarter of 2008. The share of results of jointly
controlled entities, which for the year amounted to USD 11.7
million, FR8 contributed a profit of USD 12.5 million and OMI a
loss of USD 6.6 million. The market for transport of crude oil was
very positive in the first part of the third quarter. This
primarily benefited the LR2 fleet. In the latter part of the
quarter, earnings were highest for transport of refined oil
products. The LR2 and LR1 vessels' earnings were very high, but MR
and SR vessels also enjoyed good earnings during the quarter. At
the beginning of the fourth quarter, product tanker rates have
dropped, but still remain at seasonably high levels. The tanker
market was affected by the following significant factors in the
third quarter of 2008: Positive impact: - The drop in fuel prices
from USD 700 per ton to USD 550 per ton positively affected
earnings measured in terms of TCE levels, equalling an improvement
of earnings of approximately USD 6.000 per day for an LR1 vessel. -
Following hurricanes Gustav and Ike, up to 160 vessels were waiting
to load and discharge in the Gulf of Mexico, a major factor in the
balance between supply and demand for the MR fleet, in particular.
- Increased European demand for gas oil and diesel fuel meant more
cargoes from Japan and South Korea, increasing transport distances
for the large LR1 and LR2 vessels. - Increased imports of refined
oil products to Western Africa meant longer transport distances and
longer chargeable waiting times, primarily benefiting the LR1
fleet. Negative impact: - The financial crisis and declining
economic growth have reduced the number of arbitrage-based
transports. - Rising stocks of naphtha in the Far East negatively
affected the LR2 fleet. TORM's Tanker Division achieved freight
rates in the third quarter of 2008 that were 122% higher than in
the third quarter of 2007 for the LR2 segment, 15% higher for the
MR segment, and 24% higher for the SR segment, while the rates
obtained for the LR1 segment were 14% lower. Tanker Division Q3 07
Q4 07 Q1 08 Q2 08 Q3 08 Change 12 Q3 07 month -Q3 08 avg. LR2
(Aframax 90-110,000 DWT) Available earning days 906 903 908 926 970
7% TCE per earning day(1) 21,841 23,316 28,538 32,084 48,421(3)
122% 33,354 Operating days 818 864 865 896 967 18% Operating
expenses per operating day(2) 6,471 6,466 8,270 7,906 7,226 12%
7,464 LR1 (Panamax 75-85,000 DWT) Available earning days 1,577
1,702 1,822 1,764 1,804 14% TCE per earning day(1) 27,448 26,548
23,533 27,036 23,648(4) -14% 25,157 Operating days 685 695 682 687
690 1% Operating expenses per operating day(2) 4,955 5,336 6,538
7,028 6,942 40% 6,458 MR (45,000 DWT) Available earning days 2,223
2,497 2,490 2,576 2,668 20% TCE per earning day(1) 22,978 21,715
22,716 23,158 26,458(5) 15% 23,559 Operating days 2,089 2,393 2,368
2,533 2,525 21% Operating expenses per operating day(2) 6,147 8,224
8,260 7,885 7,482 22% 7,954 SR (35,000 DWT) Available earning days
732 1,104 1,088 1,092 1,100 50% TCE per earning day(1) 16,129
17,121 21,034 21,036 20,078 24% 19,809 Operating days 732 1,104 910
911 917 25% Operating expenses per operating day(2) 5,460 7,255
8,182 7,898 7,478 37% 7,680 1) Time Charter Equivalent (TCE) =
Gross freight income less bunker, commissions and port expenses. In
the second quarter un-allocated earnings amounts to USD -9.2
million and comprise of fair value adjustment of freight and
bunkers derivatives, which are not designated as hedges, and gains
and losses on freight and bunkers derivatives, which are not
entered for hedge purposes. 2) Operating expenses is related owned
vessels. In the second quarter un-allocated expenses amounted to
USD 0.6 million and comprised expenses not relating to the daily
operation of our vessels. 3) Positively affected by realised FFA
and bunker hedges corresponding to USD 2,158 totalling USD 2.1
million. 4) Negatively affected by realised FFA and bunker hedges
corresponding to USD 7,881 totalling USD 14.2 million. 5)
Negatively affected by realised FFA and bunker hedges corresponding
to USD 248 totalling USD 0.7 million. Bulk Division The Bulk
Division achieved an operating profit of USD 48.7 million for the
third quarter of 2008. Bulk freight rates collapsed towards the end
of the third and into the beginning of the fourth quarter. At the
beginning of the third quarter, earnings per day for a Panamax bulk
carrier amounted to approximately USD 79,000, whereas at the end of
the third quarter the same earnings had dropped to approximately
USD 32,000 per day. At the beginning of the fourth quarter, freight
rates have dropped further to approximately USD 12-15,000 per day
for a one-year T/C agreement. The outlook for bulk freight rates
remains negatively impacted by the US and European recession and by
large iron ore stocks in China. The number of available earning
days in TORM's Panamax segment was 13% higher in the third quarter
of 2008 than in the third quarter of 2007. Similarly, earnings were
85% up on the same quarter of 2007. Bulk Division Q3 07 Q4 07 Q1 08
Q2 08 Q3 08 Change 12 Q3 07 month -Q3 08 avg. Panamax (60-80,000
DWT) Available earning days 1,258 1,287 1,394 1,367 1,421 13% TCE
per earning day(1) 27,019 27,443 36,909 50,568 49,888 85% 41,468
Operating days 546 559 565 585 556 2% Operating expenses per
operating day(2) 4,580 5,392 6,940 6,647 5,521 21% 6,134 1) TCE =
Gross freight income less bunker, commissions and port expenses. 2)
Operating expenses is related owned vessels. In the second quarter
un-allocated expenses amounted to USD 0.2 million and comprised
expenses not relating to the daily operation of our vessels. Other
activities Other (non-allocated) activities for the first nine
months of 2008 consist of investments in joint ventures of USD 11.7
million, financial items of USD -49.8 million and tax of USD -1.4
million. Fleet development At the end of the third quarter of 2008,
TORM's owned fleet totalled 64 vessels, 58 of which were tankers
and six bulk carriers. For the remaining part of 2008, TORM has
chartered in approximately 18 product tankers and approximately 11
bulk carriers, totalling a fleet of 93 vessels. During the third
quarter of 2008, TORM sold and delivered TORM Wabash, realising a
profit of USD 11 million. In the third quarter, TORM Gotland was
sold for delivery at the beginning of the fourth quarter. As
previously announced, the Company will realise a profit of USD 20
million from this sale. Own vessels T/C vessels Total 30 June
Additions Disposals 30 Sep 30 Sep 2008 2008 2008 LR2 / Aframax 10.5
1 - 11.5 1.4 12.9 LR1 / 13.5 21.0 Panamax 7.5 - - 7.5 MR 30.0 - 1
29.0 1.0 30.0 SR 10.0 - - 10.0 2.0 12.0 Tanker 58.0 1 1 58.0 17.9
75.9 Panamax 6.0 - - 6.0 11.0 17.0 Bulk 6.0 - - 6.0 11.0 17.0 total
64.0 1 1 64.0 28.9 92.9 Planned fleet changes TORM has reconfirmed
four MR vessels in the third quarter for delivery in 2011 and 2012,
respectively. Follow link to view table:
http://www.torm.com/wps/wcm/connect/public+content/Public/Investor+relations/
Releases/ (Due to the length of this URL, it may be necessary to
copy and paste this hyperlink into your Internet browser's URL
address field. Remove the space if one exists.) Pools As at 30
September 2008, the three product tanker pools in which TORM
participates comprised a total of 86 vessels, 50 of which were TORM
vessels. To this should be added 23 vessels which TORM operates
outside pools. By the end of 2008, the three pools are expected to
comprise a total of 91 vessels, of which 56 will be TORM vessels.
Results Third quarter 2008 The third quarter of 2008 showed a gross
profit of USD 152 million, against USD 90 million for the
corresponding quarter of 2007. Profit before depreciation (EBITDA)
for the period was USD 145 million, against USD 79 million for the
third quarter of 2007. The increase in both gross profit and EBITDA
was primarily due to increased earnings as a result of a larger
number of earning days and higher freight rates in the Tanker
Division and higher freight rates in the Bulk Division. In the
third quarter of 2008, depreciation amounted to USD 31 million. The
operating profit for the third quarter of 2008 was USD 120 million,
against USD 48 million in the same quarter of 2007. The Tanker and
Bulk Divisions contributed USD 68 million and USD 49 million
respectively, whereas USD 3 million is unallocated. In the third
quarter of 2008, financial items amounted to USD -28 million,
against USD -10 million in the corresponding quarter of 2007.
Financial expenses for the third quarter of 2008 were impacted by
an expense of approximately USD 11 million relating to fair value
adjustment of financial derivatives (interest rate swaps, forward
exchange contracts, etc.). Profit after tax for the third quarter
was USD 91 million, including a profit of USD 11 million from the
sale of vessels, against USD 35 million in the third quarter of
2007. Assets Total assets rose from USD 3,211 million to USD 3,243
million in the third quarter of 2008. Liabilities During the third
quarter of 2008, the Company's net interest bearing debt was
reduced from USD 1,689 million to USD 1,575 million. The item
mainly comprised net borrowing in connection with the delivery of
vessels and positive cash earnings during the period. More than
half of the debt falls due in or after 2013. The Company has
unutilised credit facilities and cash in excess of USD 700 million.
Equity During the third quarter of 2008, equity rose from USD 1,211
million to USD 1,269 million as a result of earnings during the
period. Equity as a percentage of total assets increased from 37.7%
at 39 June 2008 to 39.1% as at 30 September 2008. As at 30
September 2008, TORM held 3,556,364 treasury shares, corresponding
to 4.9% of the Company's share capital, which is unchanged compared
with 30 June 2008. Subsequent events During the fourth quarter of
2008, TORM has delivered TORM Gotland to the buyer, realising a
profit of USD 20 million in this quarter. Expectations TORM
maintains a forecast pre-tax profit for 2008 of USD 355 - 370
million as announced on 11 August 2008 (announcement no. 16/2008).
Sensitivity At 31 October 2008, approximately 63% of the earning
days of the Company's product tankers were covered for the
remainder of the year. For the Bulk Division, approximately 78% of
the remaining operating days were covered for the rest of the year.
In the Bulk Division, TORM solely uses physical agreements for
hedging purposes, and has thus not been involved in the market for
forward purchases or sales of freight agreements. Follow link to
view table:
http://www.torm.com/wps/wcm/connect/public+content/Public/Investor+relations/
Releases/ (Due to the length of this URL, it may be necessary to
copy and paste this hyperlink into your Internet browser's URL
address field. Remove the space if one exists.) At 31 October, TORM
had hedged the price of 20% of the remaining bunker requirement for
2008 and 12% for 2009. The market value of the contracts for 2008
was USD -4.1 million and for 2009 USD -21.1 million Safe Harbor
Matters discussed in this release may constitute Forward-looking
forward-looking statements. Forward-looking statements 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. 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 126.2 at 30 September 2008, against DKK 167.1 at the
beginning of the third quarter - equivalent to a decrease of DKK
40.9 (24%). Accounting policies The interim report for the third
quarter of 2008 has been prepared using the same accounting
policies as for the Annual Report 2007, except that the Company has
changed its accounting policy for the recognition of investments in
joint ventures so that these are recognised according to the equity
method. Previously, joint ventures were recognised on a pro rata
basis. The change in accounting policy is due to the fact that the
Company finds it inappropriate to aggregate the items of joint
ventures with items of entities that form an integral part of the
Company's activities. The policy change has no effect on the income
statement or on equity, but the profit for the year of joint
ventures and the investment in these are presented in a single line
item in the income statement and the balance sheet, respectively.
Furthermore, the takeover balance sheet in connection with the
acquisition of 50% of OMI in June 2007 has been finalised. As a
result of the change in accounting policy and the finalised OMI
takeover balance sheet, the operating profit and net cash flows for
2007 were reduced by USD 5.9 million and USD 11.6 million,
respectively, and invested capital at 31 December 2007 was
increased by USD 12.5 million. In addition, TORM has implemented
IAS 34, "Interim Financial Reporting". The implementation has not
led to any changes in the income statement or equity, but has
caused minor changes to the presentation and a few additions to the
disclosures. The accounting policies are described in more detail
in the Annual Report 2007. The interim report for the third quarter
of 2008 is unaudited, in line with the normal practice. Information
Teleconference TORM will host a teleconference for financial
analysts and investors on 21 November 2008 at 17:00 Copenhagen time
(CET), reviewing the interim report for the third quarter of 2008.
The conference call will be hosted by Mikael Skov, CEO, and Roland
M. Andersen, CFO, and will be conducted in English. To participate,
please call 10 minutes before the conference on tel.: +45 3271 4607
(from Europe) or +1,334,323 6201 (from the USA). The teleconference
will also be webcast via TORM's website http://www.torm.com/ The
presentation material can be downloaded from the website. Next
reporting TORM's Annual Report for 2008 will be released on 11
March 2009. Statement by the Board of Directors and Management on
the Interim Report The Board of Directors and Management have
considered and approved the interim report for the period 1 January
- 30 September 2008. 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 2008. 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. Management Board of
Directors Mikael Skov, CEO Niels Erik Nielsen, Chairman Roland M.
Andersen, CFO Christian Frigast, Deputy Chairman Peter Abildgaard
Lennart Arrias Margrethe Bligaard Bo Jagd Gabriel Panayotides
Michael Steimler 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
operates a combined fleet of more than 130 modern vessels,
principally through a pooling cooperation with other respected
shipping companies who share TORM's commitment to safety,
environmental responsibility and customer service. TORM was founded
in 1889. The Company conducts business worldwide and is
headquartered in Copenhagen. TORM's shares are listed on the OMX
Nordic Exchange Copenhagen (symbol: TRMD). For further information,
please visit http://www.torm.com/. Income Statement Million USD
Q1-Q3 Q1-Q3 Q3 2008 Q3 2007 2008 2007 2007 Revenue 336.6 208.1
878.2 549.4 773.6 Port expenses, bunkers and commissions -76.5
-46.0 -190.4 -122.5 -172.2 Freight and bunkers derivatives -15.9
0.3 -7.6 0.5 2.9 Time charter equivalent earnings 244.2 162.4 680.2
427.4 604.3 Charter hire -50.4 -42.4 -140.7 -112.9 -154.9 Operating
expenses -41.5 -29.9 -130.2 -75.9 -115.5 Gross profit (Net earnings
from shipping activities) 152.3 90.1 409.3 238.6 333.9 Profit from
sale of vessels 10.8 0.0 62.8 0.0 0.0 Administrative expenses -22.6
-14.3 -62.1 -38.3 -55.0 Other operating income 4.3 3.0 11.0 9.0
15.2 Depreciation and impairment losses -31.3 -26.6 -93.1 -56.5
-89.1 Share of results of jointly controlled entities 6.1 -4.1 11.7
-5.6 -6.0 Operating profit 119.6 48.1 339.6 147.2 199.0 Financial
items -28.3 -10.4 -49.8 629.7 605.2 Profit before tax 91.3 37.7
289.8 776.9 804.2 Tax -0.5 -2.9 -1.4 -1.7 -12.5 Net profit 90.8
34.8 288.4 775.2 791.7 Earnings per share, EPS Earnings per share,
EPS (USD) 1.3 0.5 4.2 11.2 11.4 Earnings per share, EPS (DKK) *)
6.5 2.7 20.4 62.0 62.3 *) The key figures have been translated from
USD to DKK using the average USD/DKK exchange change rate for the
period in question. Income statement by quarter Million USD Q3 07
Q4 07 Q1 08 Q2 08 Q3 08 Revenue 208.1 224.2 255.0 286.6 336.6 Port
expenses, bunkers and commissions -46.0 -49.7 -54.5 -59.4 -76.5
Freight and bunkers derivatives 0.3 2.4 -0.4 8.7 -15.9 Time charter
equivalent earnings 162.4 176.9 200.1 235.9 244.2 Charter hire
-42.4 -42.0 -46.0 -44.3 -50.4 Operating expenses -29.9 -39.6 -43.5
-45.2 -41.5 Gross profit (Net earnings from shipping activities)
90.1 95.3 110.6 146.4 152.3 Profit from sale of vessels 0.0 0.0 0.0
52.0 10.8 Administrative expenses -14.3 -16.7 -19.7 -19.8 -22.6
Other operating income 3.0 6.2 3.6 3.1 4.3 Depreciation and
impairment losses -26.6 -32.6 -30.7 -31.1 -31.3 Share of results of
jointly controlled entities -4.1 -0.4 -1.8 7.4 6.1 Operating profit
48.1 51.8 62.0 158.0 119.6 Financial items -10.4 -24.5 -9.9 -11.6
-28.3 Profit before tax 37.7 27.3 52.1 146.4 91.3 Tax -2.9 -10.8
0.1 -1.0 -0.5 Net profit 34.8 16.5 52.2 145.4 90.8 Assets Million
USD 30 Sep. 30 Sep. 31 Dec. 2008 2007 2007 NON-CURRENT ASSETS
Intangible assets Goodwill 89.2 87.9 89.2 Other intangible assets
3.1 10.5 7.5 Total intangible assets 92.3 98.4 96.7 Tangible fixed
assets Land and buildings 3.8 0.4 4.2 Vessels and capitalized
dry-docking 2,240.6 2,189.3 2,169.8 Prepayments on vessels 308.1
180.2 259.4 Other plant and operating equipment 7.6 7.0 5.9 Total
tangible fixed assets 2,560.1 2,376.9 2,439.3 Financial fixed
assets Investment in jointly controlled entities 113.8 0.0 0.0
Loans to jointly controlled entities 49.4 107.0 110.0 Other
investments 9.9 11.0 11.0 Other financial assets 46.0 46.0 46.0
Total financial assets 219.1 164.0 167.0 TOTAL NON-CURRENT ASSETS
2,871.5 2,639.3 2,703.0 CURRENT ASSETS Bunkers 29.0 17.8 19.7
Freight receivables, etc. 127.6 77.4 90.0 Other receivables 56.7
44.1 37.0 Prepayments 9.2 10.4 4.2 Cash and cash equivalents 133.4
86.5 105.0 355.9 236.2 255.9 Non-current assets held for sale 15.1
0.0 0.0 TOTAL CURRENT ASSETS 371.0 236.2 255.9 TOTAL ASSETS 3,242.5
2,875.5 2,958.9 Equity and Liabilities Million USD 30 Sep. 30 Sep.
31 Dec. 2008 2007 2007 EQUITY Common shares 61.1 61.1 61.1 Treasury
shares -18.1 -18.1 -18.1 Revaluation reserves 3.4 7.4 7.3 Retained
profit 1,247.0 999.7 953.6 Proposed dividends 0.0 0.0 64.5 Hedging
reserves -29.0 8.5 8.7 Translation reserves 4.1 4.1 4.1 TOTAL
EQUITY 1,268.5 1,062.7 1,081.2 LIABILITIES Non-current liabilities
Deferred tax liability 55.3 55.9 55.6 Mortgage debt and bank loans
1,514.6 829.1 884.6 Acquired liabilities related to options on
vessels 20.9 31.6 31.6 Acquired time charter contracts 6.5 19.1
16.0 TOTAL NON-CURRENT LIABILITIES 1,597.3 935.7 987.8 Current
liabilities Mortgage debt and bank loans 193.5 762.2 768.7 Trade
payables 61.6 24.5 42.6 Current tax liabilities 15.2 14.3 14.5
Other liabilities 93.1 40.8 44.2 Acquired time charter contracts
11.5 20.2 16.0 Deferred income 1.8 15.1 3.9 TOTAL CURRENT
LIABILITIES 376.7 877.1 889.9 TOTAL LIABILITIES 1,974.0 1,812.8
1,877.7 TOTAL EQUITY AND LIABILITIES 3,242.5 2,875.5 2,958.9 Equity
1 January - 30 September 2008 Million USD Common Treasury Retained
Proposed Revaluation shares shares profit dividends reserves Equity
at 1 January 2008 61.1 -18.1 953.6 64.5 7.3 Changes in equity Q1-Q3
2008: Exchange rate adjustment arising on translation of entities
using a measurement currency different from USD - - - - - Reversal
of deferred gain/loss on hedge instruments at the beginning of year
- - - - - Deferred gain/loss on hedge instruments at the end of the
period - - - - - Fair value adjustment on available for sale
investments - - - - -1.3 Transfer to profit or loss on sale of
available for sale investments - - - - -2.6 Net gains/losses
recognised directly in equity 0.0 0.0 0.0 0.0 -3.9 Net profit for
the period 288.4 Total recognized income/expenses for the period
0.0 0.0 288.4 0.0 -3.9 Purchase treasury shares, cost - - - - -
Disposal treasury shares, cost - - - - - Dividends paid - - - -68.6
- Dividends paid on treasury shares - - 3.3 - - Exchange rate
adjustment on dividends paid - - -4.1 4.1 - Share-based
compensation - - 5.8 - - Total changes in equity Q1-Q3 2008: 0.0
0.0 293.4 -64.5 -3.9 Equity at 30 September 2008 61.1 -18.1 1,247.0
0.0 3.4 Table Cont Million USD Hedging Translation Total reserves
reserves Equity at 1 January 2008 8.7 4.1 1,081.2 Changes in equity
Q1-Q3 2008: Exchange rate adjustment arising on translation of
entities using a measurement currency different from USD - 0.0 0.0
Reversal of deferred gain/loss on hedge instruments at the
beginning of year -8.7 - -8.7 Deferred gain/loss on hedge
instruments at the end of the period -29.0 - -29.0 Fair value
adjustment on available for sale investments - - -1.3 Transfer to
profit or loss on sale of available for sale investments - - -2.6
Net gains/losses recognised directly in equity -37.7 0.0 -41.6 Net
profit for the period 288.4 Total recognized income/expenses for
the period -37.7 0.0 246.8 Purchase treasury shares, cost - - 0.0
Disposal treasury shares, cost - - 0.0 Dividends paid - - -68.6
Dividends paid on treasury shares - - 3.3 Exchange rate adjustment
on dividends paid - - 0.0 Share-based compensation - - 5.8 Total
changes in equity Q1-Q3 2008: -37.7 0.0 187.3 Equity at 30
September 2008 -29.0 4.1 1,268.5 Equity 1 January - 30 September
2007 Million USD Common Treasury Retained Proposed Revaluation
shares shares profit dividends reserves Equity at 1 January 2007
61.1 -18.1 574.5 73.9 579.8 Changes in equity Q1-Q3 2007: Exchange
rate adjustment arising on translation of entities using a
measurement currency different from USD - - - - - Reversal of
deferred gain/loss on hedge instruments at the beginning of year -
- - - - Deferred gain/loss on hedge instruments at the end of the
period - - - - - Fair value adjustment on available for sale
investments - - - - 70.9 Transfer to profit or loss on sale of
available for sale investments - - - - -643.3 Net gains/losses
recognised directly in equity 0.0 0.0 0.0 0.0 -572.4 Net profit for
the period 775.2 Total recognized income/expenses for the period
0.0 0.0 775.2 0.0 -572.4 Purchase treasury shares, cost - - - - -
Disposal treasury shares, cost - - - - - Extraordinary dividends
paid - - -369.2 - - Dividends paid - - - -76.4 - Dividends paid on
treasury shares - - 21.7 - - Exchange rate adjustment on dividends
paid - - -2.5 2.5 - Total changes in equity Q1-Q3 2007: 0.0 0.0
425.2 -73.9 -572.4 Equity at 30 September 2007 61.1 -18.1 999.7 0.0
7.4 TABLE CONT. Million USD Hedging Translation Total reserves
reserves Equity at 1 January 2007 5.6 4.0 1,280.8 Changes in equity
Q1-Q3 2007: Exchange rate adjustment arising on translation of
entities using a measurement currency different from USD - 0.1 0.1
Reversal of deferred gain/loss on hedge instruments at the
beginning of year -5.6 - -5.6 Deferred gain/loss on hedge
instruments at the end of the period 8.5 - 8.5 Fair value
adjustment on available for sale investments - - 70.9 Transfer to
profit or loss on sale of available for sale investments - - -643.3
Net gains/losses recognised directly in equity 2.9 0.1 -569.4 Net
profit for the period 775.2 Total recognized income/expenses for
the period 2.9 0.1 205.8 Purchase treasury shares, cost - - 0.0
Disposal treasury shares, cost - - 0.0 Extraordinary dividends paid
- - -369.2 Dividends paid - - -76.4 Dividends paid on treasury
shares - - 21.7 Exchange rate adjustment on dividends paid - - 0.0
Total changes in equity Q1-Q3 2007: 2.9 0.1 -218.1 Equity at 30
September 2007 8.5 4.1 1,062.7 Cash flow statement Million USD Q3
Q3 Q1-Q3 Q1-Q3 2008 2007 2008 2007 2007 Cash flow from operating
activities Operating profit 119.7 48.1 339.7 147.2 199.0
Adjustments: Reversal of profit from sale of vessels -10.8 0.0
-62.8 0.0 0.0 Reversal of depreciation and impairment losses 31.3
26.6 93.1 56.5 89.1 Reversal of share of results of jointly
controlled entities -6.1 4.1 -11.7 5.6 6.0 Reversal of other
non-cash movements -0.8 0.5 -7.8 3.3 2.7 Dividends received 0.0 0.0
1.4 1.3 1.3 Dividends received from joint controlled entities 1.5
0.1 3.0 2.1 2.6 Interest received and exchange rate gains 3.7 9.1
16.2 23.4 19.9 Interest paid -20.2 -27.4 -62.5 -50.9 -70.8 Income
taxes paid 0.4 -0.2 -1.2 0.6 -9.5 Change in inventories, accounts
receivables and payables -7.5 -54.6 -43.3 -62.9 -52.4 Net cash
inflow/(outflow) from operating activities 111.2 6.3 264.1 126.2
187.9 Cash flow from investing activities Investment in tangible
fixed assets -112.6 -16.5 -293.7 -160.5 -252.2 Investment in equity
interests and securities 0.0 0.2 -133.5 0.0 0.0 Loans to jointly
controlled entities 64.0 906.0 64.0 -19.4 -31.3 Payment of
liability related to options on vessels -11.0 0.0 -11.0 0.0 0.0
Acquisition of enterprises and activities 0.0 -808.6 0.0 -808.6
-810.2 Sale of equity interests and securities 0.0 32.7 17.4 736.9
736.9 Sale of non-current assets 63.0 0.0 131.6 0.1 0.2 Net cash
inflow/(outflow) from investing activities 3.4 113.8 -225.2 -251.5
-356.6 Cash flow from financing activities Borrowing, mortgage debt
and other financial liabilities 0.0 873.8 1,007.4 1,694.7 1,807.9
Repayment/redemption, mortgage debt -59.5 -977.7 -952.6 -1,090.5
-1,141.8 Dividends paid 0.0 -351.3 -65.3 -424.0 -424.0
Purchase/disposals of treasury shares 0.0 0.0 0.0 0.0 0.0 Cash
inflow/(outflow) from financing activities -59.5 -455.2 -10.5 180.2
242.1 Increase/(decrease) in cash and cash equivalents 55.1 -335.1
28.4 54.9 73.4 Cash and cash equivalents, beginning balance 78.3
421.6 105.0 31.6 31.6 Cash and cash equivalents, ending balance
133.4 86.5 133.4 86.5 105.0 Cash flow statement per quarter Million
USD Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Cash flow from operating
activities Operating profit 48.1 51.8 62.0 158.0 119.7 Adjustments:
Reversal of profit from sale of vessels 0.0 0.0 0.0 -52.0 -10.8
Reversal of depreciation and impairment losses 26.6 32.6 30.7 31.1
31.3 Reversal of share of results of jointly controlled entities
4.1 0.4 1.8 -7.4 -6.1 Reversal of other non-cash movements 0.5 -0.6
-4.6 -2.4 -0.8 Dividends received 0.0 0.0 0.2 1.2 0.0 Dividends
received from joint controlled entities 0.1 0.5 1.3 0.2 1.5
Interest received and exchange rate gains 9.1 -3.5 9.7 2.8 3.7
Interest paid -27.4 -19.9 -23.9 -18.4 -20.2 Income taxes paid -0.2
-10.1 -1.3 -0.3 0.4 Change in inventories, accounts receivables and
payables -54.6 10.5 -12.2 -23.6 -7.5 Net cash inflow/(outflow) from
operating activities 6.3 61.7 63.7 89.2 111.2 Cash flow from
investing activities Investment in tangible fixed assets -16.5
-91.7 -102.9 -78.2 -112.6 Investment in equity interests and
securities 0.2 0.0 -118.4 -15.1 0.0 Loans to jointly controlled
entities 906.0 -11.9 0.0 0.0 64.0 Payment of liability related to
options on vessels 0.0 0.0 0.0 0.0 -11.0 Acquisition of enterprises
and activities -808.6 -1.6 0.0 0.0 0.0 Sale of equity interests and
securities 32.7 0.0 0.0 17.4 0.0 Sale of non-current assets 0.0 0.1
0.1 68.5 63.0 Net cash inflow/(outflow) from investing activities
113.8 -105.1 -221.2 -7.4 3.4 Cash flow from financing activities
Borrowing, mortgage debt and other financial liabilities 873.8
113.2 137.6 869.8 0.0 Repayment/redemption, mortgage debt -977.7
-51.3 -8.3 -884.8 -59.5 Dividends paid -351.3 0.0 0.0 -65.3 0.0
Purchase/disposals of treasury shares 0.0 0.0 0.0 0.0 0.0 Cash
inflow/(outflow) from financing activities -455.2 61.9 129.3 -80.3
-59.5 Increase/(decrease) in cash and cash equivalents -335.1 18.5
-28.2 1.5 55.1 Cash and cash equivalents, beginning balance 421.6
86.5 105.0 76.8 78.3 Cash and cash equivalents, ending balance 86.5
105.0 76.8 78.3 133.4 DATASOURCE: A/S Dampskibsselskabet TORM
CONTACT: Contact: A/S Dampskibsselskabet TORM, Tuborg Havnevej 18,
DK-2900 Hellerup, Denmark. Telephone: +45-39-17-92-00, Mikael Skov,
CEO, Roland M. Andersen, CFO .
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