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
Tuborg Havnevej 18
DK-2900 Hellerup, Denmark
Telephone: +45 39 17 92 00
Jacob Meldgaard, CEO
Roland M. Andersen, CFO
Key figures
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
*) The gain from sale of vessels and the mark-to-market adjustments of other
financial assets are not annualised when calculating the Return on Equity.
**) The gain from sale of vessels is not annualised when calculating the Return
on Invested Capital.
Profit by division
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
The activity that TORM owns in a 50/50 joint venture with Teekay and the 50%
ownership of FR8 Holding Pte. Ltd. is included in "Not-allocated".
Tanker Division The 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.
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
1) TCE = Time Charter Equivalent Earnings = Gross freight income less bunker,
commissions and port expenses.
2) Operating expenses are related to owned vessels.
.
Bulk Division 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.
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
1) TCE = Time Charter Equivalent Earnings = Gross freight income less bunker,
commissions and port expenses.
2) Operating expenses are related to owned vessels.
Other activities Other (non-allocated) activities are 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.
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.
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.
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.
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.
The table below shows the figures for 2010 for the period 1 April to 31
December 2010.
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 Matters discussed in this release may constitute forward-looking
statements. Forward-looking statements reflect our
Forward-looking current views with respect to future events and financial
performance and may include statements concerning plans,
Statements objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are
other than statements of historical facts. The forward-looking statements in
this release are based upon various assumptions, many of which are based, in
turn, upon further assumptions, including without limitation, Management's
examination of historical operating trends, data contained in our records and
other data available from third parties. Although TORM believes that these
assumptions were reasonable when made, because these assumptions are inherently
subject to significant uncertainties and contingencies which are difficult or
impossible to predict and are beyond our control, TORM cannot assure you that
it will achieve or accomplish these expectations, beliefs or projections.
Important factors that, in our view, could cause actual results to differ
materially from those discussed in the forward looking statements include the
strength of world economies and currencies, changes in charter hire rates and
vessel values, changes in demand for “tonne miles” of oil carried by oil
tankers, the effect of changes in OPEC's petroleum production levels and
worldwide oil consumption and storage, changes in demand that may affect
attitudes of time charterers to scheduled and unscheduled dry-docking, changes
in TORM's operating expenses, including bunker prices, dry-docking and
insurance costs, changes in governmental rules and regulations including
requirements for double hull tankers or actions taken by regulatory
authorities, potential liability from pending or future litigation, domestic
and international political conditions, potential disruption of shipping routes
due to accidents and political events or acts by terrorists. Risks and
uncertainties are further described in reports filed by TORM with the US
Securities and Exchange Commission, including the TORM Annual Report on Form
20-F and its reports on Form 6-K.
Forward looking statements are based on management's current evaluation, and
TORM is only under obligation to update and change the listed expectations to
the extent required by law.
The TORM share The price of a TORM share was DKK 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.
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.
Income statement
*) The key figures have been translated from USD to DKK using the average
USD/DKK exchange change rate for the period in question.
Statement of comprehensive income
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
Income statement by quarter
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
Assets
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
Equity and liabilities
Equity 1 January - 31 March 2010
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
Equity 1 January - 31 March 2009
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
Statement of cash flows
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 4.7
Payment of liability related to options on vessels 0.0 1.5 0.0
Acquisition of enterprises and activities 0.0 0.0 1.5
Sale of equity interests and securities 0.0 0.0 4.7
Sale of non-current assets 63.6 0.0 78.5
Net cash flow from investing activities 41.1 -126.7 -199.4
Cash flow from financing activities
Borrowing, mortgage debt and other financial liabilities 25.7 18.0 368.0
Repayment/redemption, mortgage debt -23.2 -22.1 -282.7
Dividends paid 0.0 0.0 -48.7
Purchase/disposals of treasury shares 0.0 0.0 0.0
Net cash flow from financing activities 2.5 -4.1 36.6
Increase/(decrease) in cash and cash equivalents 64.5 -69.6 -46.5
Cash and cash equivalents, beginning balance 121.8 168.3 168.3
Cash and cash equivalents, ending balance 186.3 98.7 121.8
Statement of cash flows by quarter
Million USD Q1 09 Q2 09 Q3 09 Q4 09 Q1 10
Cash flow from operating activities
Operating profit 48.9 -2.9 24.2 -20.4 20.3
Adjustments:
Reversal of profit from sale of vessels 0.0 -12.5 -20.7 0.1 -18.2
Reversal of depreciation and impairment losses 31.8 33.5 35.0 32.4 35.0
Reversal of impairment of jointly controlled entities 0.0 0.0 0.0 20.0 0.0
Reversal of share of results of jointly controlled
entities -0.9 0.7 -0.5 3.0 2.4
Reversal of other non-cash movements -0.3 5.6 -0.6 -3.4 -4.0
Dividends received 0.0 0.0 0.0 0.1 0.0
Dividends received from joint controlled entities 0.7 2.1 0.0 0.2 0.3
Interest received and exchange rate gains 1.8 2.4 0.1 0.8 0.1
Interest paid and exchange rate losses -17.6 -12.1 -14.4 -12.8 -14.2
Income taxes paid/repaid -1.7 -0.1 -0.1 -0.8 -2.9
Change in bunkers, accounts receivables and payables -1.5 -4.9 -0.8 1.9 2.1
Net cash flow from operating activities 61.2 11.8 22.2 21.1 20.9
Cash flow from investing activities
Investment in tangible fixed assets -129.5 -44.7 -87.1 -27.5 -23.6
Investment in equity interests and securities 0.0 0.0 0.0 0.0 0.0
Loans to jointly controlled entities 1.3 1.1 0.5 1.8 1.1
Payment of liability related to options on vessels 1.5 0.0 0.0 -1.5 0.0
Acquisition of enterprises and activities 0.0 0.0 0.0 1.5 0.0
Sale of equity interests and securities 0.0 0.0 0.0 4.7 0.0
Sale of non-current assets 0.0 26.0 52.4 0.1 63.6
Net cash flow from investing activities -126.7 -17.6 -34.2 -20.9 41.1
Cash flow from financing activities
Borrowing, mortgage debt and other financial
liabilities 18.0 245.4 110.5 -5.9 25.7
Repayment/redemption, mortgage debt -22.1 -177.0 -14.8 -68.8 -23.2
Dividends paid 0.0 -48.7 0.0 0.0 0.0
Purchase/disposals of treasury shares 0.0 0.0 0.0 0.0 0.0
Net cash flow from financing activities -4.1 19.7 95.7 -74.7 2.5
Increase/(decrease) in cash and cash equivalents -69.6 13.9 83.7 -74.5 64.5
Cash and cash equivalents, beginning balance 168.3 98.7 112.6 196.3 121.8
Cash and cash equivalents, ending balance 98.7 112.6 196.3 121.8 186.3
