--------------------------------------------------------------------------------
| TORM posted a loss before tax of USD 24 million for Q2 2010. The |
| | result was in line with expectations and better than the same |
| | period a year ago. "In Q2, the product tanker market was affected |
| | by seasonality, however positive signs of recovery were seen late |
| | in the quarter. We believe underlying demand is improving and will |
| | support the product tanker segment going forward," says CEO Jacob |
| | Meldgaard. |
| | The result before tax for the second quarter of 2010 was a loss of |
| | USD 24 million, compared to a loss of USD 33 million in the same |
| | period last year. The result for the second quarter was in line |
| | with expectations. The result for the second quarter of 2010 was |
| | positively impacted by mark-to-market non-cash adjustments of USD 2 |
| | million. |
| | A loss of USD 22 million before tax was recorded for the first six |
| | months of 2010. The result for the first quarter of 2010 includes a |
| | profit of USD 18 million from the sale of two bulk vessels. |
| | In the second quarter of 2010, product tanker rates were negatively |
| | impacted by seasonality, influx of new tonnage and continued |
| | discharge of vessels from floating storage. The demand for refined |
| | products in the West remained slow, and the freight rate weakness |
| | seen in the crude oil markets did not spur additional demand for |
| | the larger LR tonnage. The demand for vegetable oil to China and |
| | Europe and for naphtha in the Far East did not offer sufficient |
| | rate support until the end of Q2 where also demand for gasoline in |
| | the West showed an upward trend. |
| | Panamax bulk rates remained volatile in the second quarter of 2010. |
| | Up to mid-May, the rates increased to USD 37,100/day, but then fell |
| | to USD 22,100/day at the end of the quarter. Due to TORM's high |
| | coverage of earning days, the volatility in bulk spot rates had |
| | limited impact on TORM's earnings. |
| | 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 at 30 June 2010 supports |
| | book value. |
| | At 30 June 2010, equity amounted to USD 1,220 million, equivalent |
| | to USD 17.6 per share (DKK 106.9 per share), excluding treasury |
| | shares, corresponding to an equity ratio of 38%. |
| | TORM's undrawn credit facilities and cash totalled approximately |
| | USD 600 million at the end of the second quarter. Capex relating to |
| | the order book amounted to USD 372 million. |
| | Net interest-bearing debt totalled USD 1,691 million at 30 June |
| | 2010, compared to USD 1,622 million at 31 March 2010. The increase |
| | is due to borrowing in connection with the newbuilding programme. |
| | At 30 June 2010, TORM had covered 33% of the remaining earning days |
| | for 2010 in the Tanker Division at USD 16,470/day and 81% of the |
| | remaining earning days in the Bulk Division at USD 19,725/day. |
| | TORM forecasts a loss before tax of USD 40-60 million for 2010. |
--------------------------------------------------------------------------------
| Teleco | TORM will host a teleconference and webcast (www.torm.com) today, |
| n-fere | at 3:00 pm Copenhagen time (CET), see details on page 9. |
| nce | |
--------------------------------------------------------------------------------
| Contac | TORM A/S | Telephone: +45 39 17 92 00 |
| t | Tuborg Havnevej 18 | Jacob Meldgaard, CEO |
| | | Roland M. Andersen, CFO |
| | DK-2900 Hellerup, Denmark | |
--------------------------------------------------------------------------------
Key figures
--------------------------------------------------------------------------------
| | | | | Q1-Q2 | Q1-Q2 | |
--------------------------------------------------------------------------------
| Million USD | | Q2 | Q2 | 2010 | 2009 | 2009 |
| | | 2010 | 2009 | | | |
--------------------------------------------------------------------------------
| Income statement | | | | | | |
--------------------------------------------------------------------------------
| Revenue | | 201.3 | 193.6 | 406.8 | 452.4 | 862.3 |
--------------------------------------------------------------------------------
| Time charter equivalent | | 130.2 | 138.2 | 277.7 | 337.3 | 632.9 |
| earnings (TCE) | | | | | | |
--------------------------------------------------------------------------------
| Gross profit | | 41.1 | 38.9 | 97.0 | 136.4 | 242.5 |
--------------------------------------------------------------------------------
| EBITDA | | 23.6 | 30.6 | 78.9 | 111.3 | 202.5 |
--------------------------------------------------------------------------------
| Operating profit (EBIT) | | -10.8 | -2.9 | 9.5 | 46.0 | 49.8 |
--------------------------------------------------------------------------------
| Profit/(loss) before tax | | -24.4 | -32.5 | -21.8 | 6.7 | -19.0 |
--------------------------------------------------------------------------------
| Net profit | | -24.1 | -33.6 | -21.8 | 6.0 | -17.4 |
--------------------------------------------------------------------------------
| Balance sheet | | | | | | |
--------------------------------------------------------------------------------
| Total assets | | 3,210. | 3,255. | 3,210. | 3,255. | 3,227.2 |
| | | 2 | 7 | 2 | 7 | |
--------------------------------------------------------------------------------
| Equity | | 1,219. | 1,269. | 1,219. | 1,269. | 1,246.7 |
| | | 9 | 8 | 9 | 8 | |
--------------------------------------------------------------------------------
| Total liabilities | | 1,990. | 1,985. | 1,990. | 1,985. | 1,980.5 |
| | | 3 | 9 | 3 | 9 | |
--------------------------------------------------------------------------------
| Invested capital | | 2,908. | 2,932. | 2,908. | 2,932. | 2,926.0 |
| | | 6 | 6 | 6 | 6 | |
--------------------------------------------------------------------------------
| Net interest bearing | | 1,691. | 1,669. | 1,691. | 1,669. | 1,682.5 |
| debt | | 4 | 9 | 4 | 9 | |
--------------------------------------------------------------------------------
| Cash flow | | | | | | |
--------------------------------------------------------------------------------
| From operating | | -0.2 | 11.8 | 20.7 | 73.0 | 116.3 |
| activities | | | | | | |
--------------------------------------------------------------------------------
| From investing | | -68.3 | -17.6 | -27.2 | -144.3 | -199.4 |
| activities | | | | | | |
--------------------------------------------------------------------------------
| Thereof investment in | | -69.6 | -44.7 | -93.2 | -174.2 | -288.8 |
| tangible fixed assets | | | | | | |
--------------------------------------------------------------------------------
| From financing | | 3.3 | 19.7 | 5.8 | 15.6 | 36.6 |
| activities | | | | | | |
--------------------------------------------------------------------------------
| Total net cash flow | | -65.2 | 13.9 | -0.7 | -55.7 | -46.5 |
--------------------------------------------------------------------------------
| Key financial figures | | | | | | |
--------------------------------------------------------------------------------
| Gross margins: | | | | | | |
--------------------------------------------------------------------------------
| TCE | | 64.7% | 71.4% | 68.3% | 74.6% | 73.4% |
--------------------------------------------------------------------------------
| Gross profit | | 20.4% | 20.1% | 23.8% | 30.2% | 28.2% |
--------------------------------------------------------------------------------
| EBITDA | | 11.7% | 15.8% | 19.4% | 24.6% | 23.5% |
--------------------------------------------------------------------------------
| Operating profit | | -5.4% | -1.5% | 2.3% | 10.2% | 5.8% |
--------------------------------------------------------------------------------
| Return on Equity (RoE) | | -7.8% | -8.0% | -5.2% | -0.3% | -1.3% |
| (p.a.)*) | | | | | | |
--------------------------------------------------------------------------------
| Return on Invested | | -1.5% | -1.7% | 0.0% | 1.9% | 1.7% |
| Capital (RoIC) (p.a.)**) | | | | | | |
--------------------------------------------------------------------------------
| Equity ratio | | 38.0% | 39.0% | 38.0% | 39.0% | 38.6% |
--------------------------------------------------------------------------------
| Exchange rate USD/DKK, | | 6.07 | 5.27 | 6.07 | 5.27 | 5.19 |
| end of period | | | | | | |
--------------------------------------------------------------------------------
| Exchange rate USD/DKK, | | 5.86 | 5.48 | 5.62 | 5.60 | 5.36 |
| average | | | | | | |
--------------------------------------------------------------------------------
| Share related key | | | | | | |
| figures | | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, EPS | USD | -0.3 | -0.5 | -0.3 | 0.1 | -0.3 |
--------------------------------------------------------------------------------
| Diluted earnings per | USD | -0.3 | -0.5 | -0.3 | 0.1 | -0.3 |
| share, EPS | | | | | | |
--------------------------------------------------------------------------------
| Cash flow per share, | USD | 0.0 | 0.2 | 0.3 | 1.1 | 1.7 |
| CFPS | | | | | | |
--------------------------------------------------------------------------------
| Share price, end of | DKK | 46.1 | 54.0 | 46.1 | 54.0 | 50.7 |
| period (per share of DKK | | | | | | |
| 5 each) | | | | | | |
--------------------------------------------------------------------------------
| Number of shares, end of | Mil | 72.8 | 72.8 | 72.8 | 72.8 | 72.8 |
| period | lio | | | | | |
| | n | | | | | |
--------------------------------------------------------------------------------
| Number of shares (excl. | Mil | 69.3 | 69.2 | 69.3 | 69.2 | 69.2 |
| treasury shares), | lio | | | | | |
| average | n | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| *) Gains from sale of vessels and the mark-to-market adjustments of |
| 'Other financial assets' have not been annualised when calculating the |
| Return on Equity. |
--------------------------------------------------------------------------------
| **) Gain from sale of vessels has not been annualised when calculating |
| the Return on Invested Capital. |
--------------------------------------------------------------------------------
Profit by division
--------------------------------------------------------------------------------
| Million USD | Q2 2010 | Q1-Q2 2010 | |
--------------------------------------------------------------------------------
| | Tan | Bul | Non | | Tank | Bulk | Non | | |
| | ker | k | | | er | | | | |
--------------------------------------------------------------------------------
| | Div | Div | allo | Tot | Divi | Divi | alloc | Tota | |
| | isi | isi | cate | al | sion | sion | ated | l | |
| | on | on | d | | | | | | |
--------------------------------------------------------------------------------
| Revenue | 180 | 21. | 0.0 | 201 | 364. | 42.4 | 0.0 | 406. | |
| | .3 | 0 | | .3 | 4 | | | 8 | |
--------------------------------------------------------------------------------
| Port expenses, | -69 | -1. | 0.0 | -70 | -128 | -2.2 | 0.0 | -130 | |
| bunkers and | .3 | 3 | | .6 | .3 | | | .5 | |
| commissions | | | | | | | | | |
--------------------------------------------------------------------------------
| Freight and | -0. | 0.0 | 0.0 | -0. | 1.4 | 0.0 | 0.0 | 1.4 | |
| bunkers | 5 | | | 5 | | | | | |
| derivatives | | | | | | | | | |
--------------------------------------------------------------------------------
| Time charter | 110 | 19. | 0.0 | 130 | 237. | 40.2 | 0.0 | 277. | |
| equivalent | .5 | 7 | | .2 | 5 | | | 7 | |
| earnings | | | | | | | | | |
--------------------------------------------------------------------------------
| Charter hire | -40 | -14 | 0.0 | -54 | -78. | -27. | 0.0 | -106 | |
| | .3 | .1 | | .4 | 9 | 2 | | .1 | |
--------------------------------------------------------------------------------
| Operating | -33 | -0. | 0.0 | -34 | -72. | -2.4 | 0.0 | -74. | |
| expenses | .9 | 8 | | .7 | 2 | | | 6 | |
--------------------------------------------------------------------------------
| Gross Profit | 36. | 4.8 | 0.0 | 41. | 86.4 | 10.6 | 0.0 | 97.0 | |
| | 3 | | | 1 | | | | | |
--------------------------------------------------------------------------------
| Profit/(loss) | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 18.2 | 0.0 | 18.2 | |
| from sale of | | | | | | | | | |
| vessels | | | | | | | | | |
--------------------------------------------------------------------------------
| Administrative | -15 | -2. | 0.0 | -17 | -32. | -3.5 | 0.0 | -35. | |
| expenses | .3 | 2 | | .5 | 1 | | | 6 | |
--------------------------------------------------------------------------------
| Other Operating | 1.3 | 0.0 | 0.0 | 1.3 | 3.0 | 0.0 | 0.0 | 3.0 | |
| income | | | | | | | | | |
--------------------------------------------------------------------------------
| Share of results | 0.6 | 0.0 | -1.9 | -1. | 1.6 | 0.0 | -5.3 | -3.7 | |
| of jointly | | | | 3 | | | | | |
| controlled | | | | | | | | | |
| entities | | | | | | | | | |
--------------------------------------------------------------------------------
| EBITDA | 22. | 2.6 | -1.9 | 23. | 58.9 | 25.3 | -5.3 | 78.9 | |
| | 9 | | | 6 | | | | | |
--------------------------------------------------------------------------------
| Impairment losses | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| on jointly | | | | | | | | | |
| controlled | | | | | | | | | |
| entities | | | | | | | | | |
--------------------------------------------------------------------------------
| Depreciation and | -33 | -0. | 0.0 | -34 | -68. | -1.3 | 0.0 | -69. | |
| impairment losses | .7 | 7 | | .4 | 1 | | | 4 | |
--------------------------------------------------------------------------------
| Operating profit | -10 | 1.9 | -1.9 | -10 | -9.2 | 24.0 | -5.3 | 9.5 | |
| (EBIT) | .8 | | | .8 | | | | | |
--------------------------------------------------------------------------------
| Financial items, | - | - | -13. | -13 | - | - | -31.3 | -31. | |
| net | | | 6 | .6 | | | | 3 | |
--------------------------------------------------------------------------------
| Profit/(Loss) | - | - | -15. | -24 | - | - | -36.6 | -21. | |
| before tax | | | 5 | .4 | | | | 8 | |
--------------------------------------------------------------------------------
| Tax | - | - | 0.3 | 0.3 | - | - | 0.0 | 0.0 | |
--------------------------------------------------------------------------------
| Net profit/(loss) | - | - | -15. | -24 | - | - | -36.6 | -21. | |
| | | | 2 | .1 | | | | 8 | |
--------------------------------------------------------------------------------
| The activity that TORM owns in a 50/50 joint venture with Teekay and the 50% |
| ownership of FR8 Holding Pte. Ltd. are included in "Not-allocated". |
--------------------------------------------------------------------------------
Tanker Division The division realised an operating loss of USD 11 million for
the second quarter of 2010, compared to a loss of USD 12 million in the same
period in 2009.
In line with seasonality, rates were generally low in the second quarter of
2010. Compared to the same period a year ago rate levels have improved as the
global economy is regaining strength.
Influx of newbuildings, freed-up floating storage and a continued negative
market sentiment kept the rates at low levels, also in a historical perspective.
In the second quarter of 2010, the fleet grew by approx. 2%. The significant
delay in deliveries of new tonnage experienced in 2009 and the first quarter of
2010 continued in the second quarter, with slippage of more than 40%.
In the second quarter of 2010, the MR segment was negatively impacted by poor
gasoline demand in the USA. The market players therefore sought alternative
cargoes and destinations for the MR fleet, e.g. distilled oil products from the
USA to South America, vegetable oil from South America to China and palm oil
from Indonesia/Malaysia to the European continent.
The strengthening of the transatlantic trading route, seen late June, was partly
driven by these changes in transport patterns, as this implied fewer vessels
available on the European continent at the same time as the gasoline arbitrage
from Europe to the USA opened.
The LR segment continued to show some strength, as naphtha demand from the Far
East remained firm throughout the second quarter of 2010 despite added tonnage
from newbuildings and notably freed-up tonnage from floating storage. The weaker
dirty market implied that the tonnage balance was not supported by vessels
swapping into dirty.
The continued reduction in floating storage during the second quarter of 2010
has impacted the tonnage supply for the larger LR vessels, and thus rates. At
the end of June, floating storage has been reduced to some 3% of the total
fleet, which is a more natural level. The level of and movements in floating
storage are volatile and impacted by the forward curve for the various refined
products.
At 30 June, coverage for the remaining part of 2010 was 33% at USD 16,470/day.
--------------------------------------------------------------------------------
| Tanker Division | Q2 09 | Q3 | Q4 09 | Q1 10 | | Q2 10 | Chang | 12 |
| | | 09 | | | | | e | month |
| | | | | | | | Q2 09 | avg. |
| | | | | | | | - Q2 | |
| | | | | | | | 10 | |
--------------------------------------------------------------------------------
| LR2 (Aframax, | | | | | | | | |
| 90-110,000 DWT) | | | | | | | | |
--------------------------------------------------------------------------------
| Available earning | 1,179 | 1,19 | 1,173 | 1,163 | | 1,122 | -5% | |
| days | | 0 | | | | | | |
--------------------------------------------------------------------------------
| TCE per earning | 17,14 | 18,4 | 20,33 | 19,27 | | 17,18 | 0% | |
| day from the LR2 | 5 | 01 | 1 | 0 | | 5 | | |
| Pool | | | | | | | | |
--------------------------------------------------------------------------------
| TCE per earning | 15,78 | 17,4 | 18,35 | 18,45 | | 15,50 | -2% | 17,43 |
| day1) | 5 | 06 | 6 | 6 | | 5 | | 1 |
--------------------------------------------------------------------------------
| Operating days | 1,092 | 1,10 | 1,104 | 1,080 | | 1,092 | 0% | |
| | | 4 | | | | | | |
--------------------------------------------------------------------------------
| Operating | 7,556 | 6,49 | 6,933 | 6,908 | | 6,301 | -17% | 6,660 |
| expenses per | | 6 | | | | | | |
| operating day2) | | | | | | | | |
--------------------------------------------------------------------------------
| LR1 (Panamax | | | | | | | | |
| 75-85,000 DWT) | | | | | | | | |
--------------------------------------------------------------------------------
| Available earning | 1,756 | 1,83 | 2,025 | 1,748 | | 1,777 | 1% | |
| days | | 5 | | | | | | |
--------------------------------------------------------------------------------
| TCE per earning | 15,57 | 15,0 | 14,30 | 16,27 | | 14,90 | -4% | |
| day from the LR1 | 7 | 36 | 4 | 3 | | 3 | | |
| Pool | | | | | | | | |
--------------------------------------------------------------------------------
| TCE per earning | 18,49 | 16,5 | 16,51 | 16,68 | | 15,50 | -16% | 16,30 |
| day1) | 1 | 14 | 6 | 6 | | 9 | | 6 |
--------------------------------------------------------------------------------
| Operating days | 819 | 828 | 828 | 810 | | 749 | -9% | |
--------------------------------------------------------------------------------
| Operating | 7,142 | 6,70 | 5,986 | 6,454 | | 5,420 | -24% | 6,142 |
| expenses per | | 6 | | | | | | |
| operating day2) | | | | | | | | |
--------------------------------------------------------------------------------
| MR (45,000 DWT) | | | | | | | | |
--------------------------------------------------------------------------------
| Available earning | 3,344 | 3,60 | 3,829 | 3,755 | | 3,916 | 17% | |
| days | | 2 | | | | | | |
--------------------------------------------------------------------------------
| TCE per earning | 14,71 | 14,9 | 11,52 | 14,17 | | 12,56 | -15% | |
| day from the MR | 2 | 74 | 1 | 9 | | 7 | | |
| Pool | | | | | | | | |
--------------------------------------------------------------------------------
| TCE per earning | 15,36 | 15,3 | 12,41 | 14,70 | | 12,36 | -20% | 13,70 |
| day1) | 3 | 49 | 7 | 0 | | 3 | | 7 |
--------------------------------------------------------------------------------
| Operating days | 2,548 | 2,70 | 2,832 | 2,790 | | 2,951 | 16% | |
| | | 7 | | | | | | |
--------------------------------------------------------------------------------
| Operating | 7,458 | 6,62 | 6,770 | 6,883 | | 6,053 | -19% | 6,582 |
| expenses per | | 1 | | | | | | |
| operating day2) | | | | | | | | |
--------------------------------------------------------------------------------
| SR (35,000 DWT) | | | | | | | | |
--------------------------------------------------------------------------------
| Available earning | 1,135 | 1,16 | 1,103 | 1,002 | | 979 | -14% | |
| days | | 0 | | | | | | |
--------------------------------------------------------------------------------
| TCE per earning | 17,48 | 18,3 | 16,89 | 18,03 | | 16,09 | -8% | 17,35 |
| day1) | 3 | 78 | 4 | 4 | | 9 | | 1 |
--------------------------------------------------------------------------------
| Operating days | 1,001 | 1,01 | 1,012 | 990 | | 1,001 | 0% | |
| | | 2 | | | | | | |
--------------------------------------------------------------------------------
| Operating | 6,600 | 6,10 | 6,326 | 6,041 | | 4,821 | -27% | 5,823 |
| expenses per | | 5 | | | | | | |
| operating day2) | | | | | | | | |
--------------------------------------------------------------------------------
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 Operating profit for the second quarter of 2010 was USD 2
million, compared to USD 10 million in the second quarter of 2009.
The number of earning days for the Bulk Division was 29% lower in the second
quarter of 2010 than in the same period last year due to the sale of vessels.
The dry bulk market stayed at a relatively strong level throughout most of the
second quarter of 2010, with Panamax spot rates peaking at around USD/day 37,100
in mid-May. Rates continued to be driven by the Chinese demand for iron ore and
coal as well as high port congestion.
However, towards the end of the quarter and at the beginning of the third
quarter, rates decreased sharply and did not stabilise until the end of July. By
then, Panamax spot rates were down to around USD 16,000/day. The decline in
rates was driven by the continued high influx of new vessels, especially in the
Capesize segment, in combination with declining Chinese demand for coal and
uncertainty surrounding the future Chinese demand for iron ore. Total fleet
growth in the dry bulk segment came to about 4% in the second quarter of 2010.
As TORM seeks high coverage of earning days for the Bulk Division, the
volatility in bulk spot rates has limited impact on TORM's earnings in 2010.
At 30 June, coverage for the remaining part of 2010 was 81% at USD 19,725/day.
--------------------------------------------------------------------------------
| Bulk Division | Q2 09 | Q3 | Q4 | Q1 10 | | Q2 10 | Chang | 12 |
| | | 09 | 09 | | | | e | month |
| | | | | | | | Q2 09 | avg. |
| | | | | | | | - Q2 | |
| | | | | | | | 10 | |
--------------------------------------------------------------------------------
| Panamax | | | | | | | | |
| (60-80,000 DWT) | | | | | | | | |
--------------------------------------------------------------------------------
| Available earning | 1,496 | 1,25 | 1,20 | 1,119 | | 1,060 | -29% | |
| days | | 5 | 4 | | | | | |
--------------------------------------------------------------------------------
| TCE per earning | 13,75 | 17,9 | 19,6 | 18,29 | | 18,61 | 35% | 18,64 |
| day1) | 6 | 68 | 90 | 8 | | 1 | | 2 |
--------------------------------------------------------------------------------
| Operating days | 636 | 392 | 368 | 315 | | 182 | -71% | |
--------------------------------------------------------------------------------
| Operating | 5,106 | 4,47 | 4,06 | 5,187 | | 4,603 | -10% | 4,583 |
| expenses per | | 7 | 6 | | | | | |
| operating day2) | | | | | | | | |
--------------------------------------------------------------------------------
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 were a loss on investments in
jointly controlled entities of USD 2 million, financial expenses of USD 14
million and tax of USD 0 million.
Fleet developments In the second quarter, TORM took delivery of two MR
newbuildings, TORM Alice and TORM Alexandra. At the end of the quarter, TORM's
fleet of owned vessels comprised 66 tankers and two bulk carriers. In addition
to these, TORM had 25 tankers and 11 bulk carriers on time charter. Another 37
tankers were either in pools or under commercial management.
--------------------------------------------------------------------------------
| | Owned vessels |
--------------------------------------------------------------------------------
| | 31 Mar 10 | Addition | Disposal | 30 Jun 10 |
--------------------------------------------------------------------------------
| LR2 / Aframax | 12.5 | - | - | 12.5 |
--------------------------------------------------------------------------------
| LR1 / Panamax | 7.5 | - | - | 7.5 |
--------------------------------------------------------------------------------
| MR | 33.0 | 2.0 | - | 35.0 |
--------------------------------------------------------------------------------
| SR | 11.0 | - | - | 11.0 |
--------------------------------------------------------------------------------
| Product tankers | 64.0 | 2.0 | - | 66.0 |
--------------------------------------------------------------------------------
| Panamax dry bulk | 2.0 | - | - | 2.0 |
--------------------------------------------------------------------------------
| Total | 66.0 | - | - | 68.0 |
--------------------------------------------------------------------------------
Planned fleet changes No vessels were contracted in the second quarter of 2010,
and at the end of the quarter the order book thus comprised nine MR vessels and
four Kamsarmax vessels. Capex relating to the order book amounted to USD 372
million.
--------------------------------------------------------------------------------
| | New buildings to be delivered |
--------------------------------------------------------------------------------
| | 2010 | 2011 | 2012 | 2013 | |
--------------------------------------------------------------------------------
| | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Tota |
| | | | | | | | | | | | | l |
--------------------------------------------------------------------------------
| LR2 / | - | - | - | - | - | - | - | - | - | - | - | - |
| Aframax | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| LR1 / | - | - | - | - | - | - | - | - | - | - | - | - |
| Panamax | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| MR | 3, | - | 2, | - | 1, | 1,0 | - | 1,0 | 1,0 | - | - | 9,0 |
| | 0 | | 0 | | 0 | | | | | | | |
--------------------------------------------------------------------------------
| SR | - | - | - | - | - | - | - | - | - | - | - | - |
--------------------------------------------------------------------------------
| Tank | 3, | - | 2, | - | 1, | 1,0 | - | 1,0 | 1,0 | - | - | 9,0 |
| | 0 | | 0 | | 0 | | | | | | | |
--------------------------------------------------------------------------------
| Kamsarm | - | - | 2, | - | - | - | - | - | - | 1,0 | 1,0 | 4,0 |
| ax dry | | | 0 | | | | | | | | | |
| bulk | | | | | | | | | | | | |
--------------------------------------------------------------------------------
| I alt | 3, | - | 4, | - | 1, | 1,0 | 0,0 | 1,0 | 1,0 | 1,0 | 1,0 | 13,0 |
| | 0 | | 0 | | 0 | | | | | | | |
--------------------------------------------------------------------------------
In July 2010, TORM took delivery of the MR vessel TORM Aslaug from the Chinese
shipyard GSI Guangzhou.
Second quarter 2010
Results Gross profit for the second quarter of 2010 was USD 41 million, up from
USD 39 million for the corresponding period of 2009. Administrative expenses
were USD 18 million, against USD 23 million for the second quarter of 2009,
corresponding to a reduction of 22%. Profit before depreciation and amortisation
(EBITDA) for the period was USD 24 million, against USD 31 million for the
second quarter of 2009. The primary reason for the decline in EBITDA is that the
second quarter of 2009 was positively affected by a profit of USD 13 million
from sale of vessels.
Depreciation was USD 34 million during the second quarter of 2010.
Operating profit for the second quarter of 2010 was a loss of USD 11 million,
compared to a loss of USD 3 million for the same quarter of 2009.
The second quarter of 2010 was impacted by mark-to-market non-cash adjustments
of USD 2 million related to FFA/bunker derivatives.
In the second quarter of 2010, financial items amounted to an expense of USD 14
million, against an expense of USD 30 million in the same quarter of 2009. The
second quarter of 2009 was influenced by a negative non-cash fair value
adjustment of USD 23 million on the value of options related to vessel values
acquired in connection with the acquisition of OMI.
The result after tax was a loss of USD 24 million in the second quarter of 2010,
against a loss of USD 34 million in the second quarter of 2009. The result in
the second quarter of 2009 was impacted by a profit of USD 13 million from sale
of vessels. No vessels were sold during the second quarter of 2010.
Assets Total assets fell from USD 3,226 million at 31 March 2010 to USD 3,210
million at 30 June 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 at 30 June 2010 supports book value.
Liabilities During the second quarter of 2010, net interest-bearing debt
increased to USD 1,691 million from USD 1,622 million at 31 March 2010. The
increase in debt is due to borrowing in connection with the newbuilding
programme. More than 74% of the debt is due after 2012.
Total equity In the second quarter of 2010, equity decreased from USD 1,248
million at 31 March 2010 to USD 1,220 million, which was primarily due to the
loss during the period. Equity as a percentage of total assets was 38% at 30
June 2010, compared to 39% at 31 March 2010.
At 30 June 2010, TORM held 3,461,580 treasury shares, corresponding to 4.8% of
the Company's share capital, which is unchanged since 31 March 2010.
Liquidity TORM's undrawn credit facilities and cash totalled about USD 600
million at the end of the second quarter of 2010.
Outlook TORM forecasts a loss before tax of USD 40-60 million for 2010.
Coverage At 30 June 2010, TORM had covered 33% of the remaining earning days for
2010 in the Tanker Division at USD/day 16,470 and 81% of the remaining earning
days in the Bulk Division at USD/day 19,725.
The table below shows the figures for 2010 for the period 1 July to 31 December
2010, and full year 2011 and 2012.
Post balance sheet No subsequent events have occurred after the balance sheet
date which would change events TORM's expectations for its financial
performance for either 2010 or any subsequent period.
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 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 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 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
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 TORM'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 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 an 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 46.1 at 30 June 2010, against
DKK 57.0 at 31 March 2010, equivalent to a decrease of DKK 10.9 (19%).
Accounting policies This interim report for the second quarter of 2010 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 for the second quarter of 2010 is unaudited
and is presented in accordance with the same accounting policies as the Annual
Report 2009.
Information Teleconference
TORM will host a telephone conference for financial analysts and investors on 19
August 2010 at 3:00 pm Copenhagen time (CET), reviewing the interim report for
the first six months 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 nine months of 2010 will be published on
18 November 2010.
Statement by the Board of Directors and Executive Management on the Interim
Report
The Board of Directors and Executive Management have considered and approved the
interim report for the period 1 January - 30 June 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 of IFRS which are expected
to be applicable to 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, 19 August 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 player in the dry bulk market. The Company runs a fleet
of approximately 140 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) and on NASDAQ in New York (ticker: TRMD). For further
information, please visit www.torm.com.
Income statement
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Million USD | Q2 | Q2 | Q1-Q2 | Q1-Q2 | 2009 |
| | 2010 | 2009 | 2010 | 2009 | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Revenue | 201.3 | 193.6 | 406.8 | 452.4 | 862.3 |
--------------------------------------------------------------------------------
| Port expenses, bunkers and | -70.6 | -48.1 | -130.5 | -106.9 | -217.4 |
| commissions | | | | | |
--------------------------------------------------------------------------------
| Freight and bunkers | -0.5 | -7.3 | 1.4 | -8.2 | -12.0 |
| derivatives | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Time charter equivalent | 130.2 | 138.2 | 277.7 | 337.3 | 632.9 |
| earnings | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Charter hire | -54.4 | -55.1 | -106.1 | -109.2 | -220.9 |
--------------------------------------------------------------------------------
| Operating expenses | -34.7 | -44.2 | -74.6 | -91.7 | -169.5 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Gross profit (Net earnings | 41.1 | 38.9 | 97.0 | 136.4 | 242.5 |
| from shipping activities) | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Profit from sale of vessels | 0.0 | 12.5 | 18.2 | 12.5 | 33.1 |
--------------------------------------------------------------------------------
| Administrative expenses | -17.5 | -22.5 | -35.6 | -42.6 | -78.2 |
--------------------------------------------------------------------------------
| Other operating income | 1.3 | 2.4 | 3.0 | 4.8 | 7.4 |
--------------------------------------------------------------------------------
| Share of results of jointly | -1.3 | -0.7 | -3.7 | 0.2 | -2.3 |
| controlled entities | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| EBITDA | 23.6 | 30.6 | 78.9 | 111.3 | 202.5 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Impairment losses on jointly | 0.0 | 0.0 | 0.0 | 0.0 | -20.0 |
| controlled entities | | | | | |
--------------------------------------------------------------------------------
| Depreciation and impairment | -34.4 | -33.5 | -69.4 | -65.3 | -132.7 |
| losses | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Operating profit (EBIT) | -10.8 | -2.9 | 9.5 | 46.0 | 49.8 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Financial items | -13.6 | -29.6 | -31.3 | -39.3 | -68.8 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Profit before tax | -24.4 | -32.5 | -21.8 | 6.7 | -19.0 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Tax | 0.3 | -1.1 | 0.0 | -0.7 | 1.6 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Net profit/(loss) for the | -24.1 | -33.6 | -21.8 | 6.0 | -17.4 |
| period | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, EPS | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, EPS (USD) | -0.3 | -0.5 | -0.3 | 0.1 | -0.3 |
--------------------------------------------------------------------------------
| Earnings per share, EPS (DKK) | -2.0 | -2.7 | -1.8 | 0.5 | -1.3 |
| *) | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| *) 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 | Q2 | Q2 | Q1-Q2 | Q1-Q2 | 2009 |
| | 2010 | 2009 | 2010 | 2009 | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Net profit/(loss) for the | -24.1 | -33.6 | -21.8 | 6.0 | -17.4 |
| period | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Other comprehensive income: | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Exchange rate adjustment | | | | | |
| arising on translation | | | | | |
--------------------------------------------------------------------------------
| of entities using a | | | | | |
| measurement currency | | | | | |
| different | | | | | |
--------------------------------------------------------------------------------
| from USD | 0.0 | 0.1 | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Fair value adjustment on | -5.4 | 8.1 | -9.7 | 24.5 | 26.5 |
| hedging instruments | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Value adjustment of hedging | | | | | |
| instruments transferred | | | | | |
--------------------------------------------------------------------------------
| to income statement | 2.3 | -1.0 | 3.9 | 3.8 | 4.1 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Value adjustment of hedging | | | | | |
| instruments transferred | | | | | |
--------------------------------------------------------------------------------
| to assets | 0.0 | 0.0 | 0.0 | -1.2 | -1.2 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Fair value adjustment of | -0.3 | 1.7 | -0.5 | 0.7 | 1.6 |
| available for sale | | | | | |
| investments | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Transfer to income statement | | | | | |
| on sale of available for | | | | | |
| sale | | | | | |
--------------------------------------------------------------------------------
| investments | 0.0 | 0.0 | 0.0 | 0.0 | -3.7 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Other comprehensive income | -3.4 | 8.9 | -6.3 | 27.8 | 27.3 |
| after tax | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Total comprehensive income | -27.5 | -24.7 | -28.1 | 33.8 | 9.9 |
--------------------------------------------------------------------------------
Income statement by quarter
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Million USD | | Q2 09 | Q3 09 | Q4 09 | Q1 10 | Q2 10 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Revenue | | 193.6 | 208.8 | 201.1 | 205.5 | 201.3 |
--------------------------------------------------------------------------------
| Port expenses, bunkers | | -48.1 | -56.1 | -54.4 | -59.9 | -70.6 |
| and commissions | | | | | | |
--------------------------------------------------------------------------------
| Freight and bunkers | | -7.3 | -3.3 | -0.5 | 1.9 | -0.5 |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Time charter equivalent | | 138.2 | 149.4 | 146.2 | 147.5 | 130.2 |
| earnings | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Charter hire | | -55.1 | -56.3 | -55.4 | -51.7 | -54.4 |
--------------------------------------------------------------------------------
| Operating expenses | | -44.2 | -38.7 | -39.1 | -39.9 | -34.7 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Gross profit (Net earnings | 38.9 | 54.4 | 51.7 | 55.9 | 41.1 |
| from shipping activities) | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Profit from sale of | | 12.5 | 20.7 | -0.1 | 18.2 | 0.0 |
| vessels | | | | | | |
--------------------------------------------------------------------------------
| Administrative expenses | | -22.5 | -17.9 | -17.7 | -18.1 | -17.5 |
--------------------------------------------------------------------------------
| Other operating income | | 2.4 | 1.5 | 1.1 | 1.7 | 1.3 |
--------------------------------------------------------------------------------
| Share of results of | | -0.7 | 0.5 | -3.0 | -2.4 | -1.3 |
| jointly controlled | | | | | | |
| entities | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| EBITDA | | 30.6 | 59.2 | 32.0 | 55.3 | 23.6 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Impairment losses on | | 0.0 | 0.0 | -20.0 | 0.0 | 0.0 |
| jointly controlled | | | | | | |
| entities | | | | | | |
--------------------------------------------------------------------------------
| Depreciation and | | -33.5 | -35.0 | -32.4 | -35.0 | -34.4 |
| impairment losses | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Operating profit (EBIT) | | -2.9 | 24.2 | -20.4 | 20.3 | -10.8 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Financial items | | -29.6 | -19.8 | -9.7 | -17.7 | -13.6 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Profit before tax | | -32.5 | 4.4 | -30.1 | 2.6 | -24.4 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Tax | | -1.1 | -2.3 | 4.6 | -0.3 | 0.3 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Net profit/(loss) for the | | -33.6 | 2.1 | -25.5 | 2.3 | -24.1 |
| period | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, EPS | | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, EPS | | -0.5 | 0.0 | -0.4 | 0.0 | -0.3 |
| (USD) | | | | | | |
--------------------------------------------------------------------------------
Assets
--------------------------------------------------------------------------------
| Million USD | | | 30 June | 30 June | 31 December |
--------------------------------------------------------------------------------
| | | | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Intangible assets | | | | | |
--------------------------------------------------------------------------------
| Goodwill | | | 89.2 | 89.2 | 89.2 |
--------------------------------------------------------------------------------
| Other intangible | | | 2.2 | 2.4 | 2.2 |
| assets | | | | | |
--------------------------------------------------------------------------------
| Total intangible | | | 91.4 | 91.6 | 91.4 |
| assets | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Tangible fixed assets | | | | | |
--------------------------------------------------------------------------------
| Land and buildings | | | 3.6 | 3.7 | 3.7 |
--------------------------------------------------------------------------------
| Vessels and | | | 2,423.5 | 2,354.4 | 2,390.4 |
| capitalized | | | | | |
| dry-docking | | | | | |
--------------------------------------------------------------------------------
| Prepayments on vessels | | | 266.3 | 306.8 | 273.9 |
--------------------------------------------------------------------------------
| Other plant and | | | 9.3 | 11.4 | 10.7 |
| operating equipment | | | | | |
--------------------------------------------------------------------------------
| Total tangible fixed | | | 2,702.7 | 2,676.3 | 2,678.7 |
| assets | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Financial assets | | | | | |
--------------------------------------------------------------------------------
| Investment in jointly | | | 118.5 | 131.8 | 123.0 |
| controlled entities | | | | | |
--------------------------------------------------------------------------------
| Loans to jointly | | | 36.5 | 39.7 | 38.7 |
| controlled entities | | | | | |
--------------------------------------------------------------------------------
| Other investments | | | 2.7 | 7.1 | 3.2 |
--------------------------------------------------------------------------------
| Other financial assets | | | 6.0 | 4.3 | 8.5 |
--------------------------------------------------------------------------------
| Total financial assets | | | 163.7 | 182.9 | 173.4 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| TOTAL NON-CURRENT | | | 2,957.8 | 2,950.8 | 2,943.5 |
| ASSETS | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| CURRENT ASSETS | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Bunkers | | | 28.6 | 20.7 | 24.6 |
--------------------------------------------------------------------------------
| Freight receivables, | | | 70.9 | 57.0 | 62.1 |
| etc. | | | | | |
--------------------------------------------------------------------------------
| Other receivables | | | 13.9 | 58.3 | 16.8 |
--------------------------------------------------------------------------------
| Other financial assets | | | 0.0 | 11.5 | 0.4 |
--------------------------------------------------------------------------------
| Prepayments | | | 17.9 | 15.1 | 13.6 |
--------------------------------------------------------------------------------
| Cash and cash | | | 121.1 | 112.6 | 121.8 |
| equivalents | | | | | |
--------------------------------------------------------------------------------
| | | | 252.4 | 275.2 | 239.3 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | 0.0 | 29.7 | 44.4 |
| held for sale | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| TOTAL CURRENT ASSETS | | | 252.4 | 304.9 | 283.7 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| TOTAL ASSETS | | | 3,210.2 | 3,255.7 | 3,227.2 |
--------------------------------------------------------------------------------
Equity and liabilities
--------------------------------------------------------------------------------
| Million USD | | | 30 June | 30 June | 31 December |
--------------------------------------------------------------------------------
| | | | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| EQUITY | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Common shares | | | 61.1 | 61.1 | 61.1 |
--------------------------------------------------------------------------------
| Treasury shares | | | -17.9 | -18.1 | -18.1 |
--------------------------------------------------------------------------------
| Revaluation reserves | | | -2.7 | 0.6 | -2.2 |
--------------------------------------------------------------------------------
| Retained profit | | | 1,184.4 | 1,227.7 | 1,205.1 |
--------------------------------------------------------------------------------
| Proposed dividends | | | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Hedging reserves | | | -9.1 | -5.6 | -3.3 |
--------------------------------------------------------------------------------
| Translation reserves | | | 4.1 | 4.1 | 4.1 |
--------------------------------------------------------------------------------
| TOTAL EQUITY | | | 1,219.9 | 1,269.8 | 1,246.7 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| LIABILITIES | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Non-current | | | | | |
| liabilities | | | | | |
--------------------------------------------------------------------------------
| Deferred tax liability | | | 54.6 | 55.2 | 55.0 |
--------------------------------------------------------------------------------
| Mortgage debt and bank | | | 1,609.0 | 1,644.0 | 1,629.2 |
| loans | | | | | |
--------------------------------------------------------------------------------
| Finance lease | | | 31.5 | 0.0 | 31.7 |
| liabilities | | | | | |
--------------------------------------------------------------------------------
| Acquired liabilities | | | 1.0 | 2.8 | 1.9 |
| related to options on | | | | | |
| vessels | | | | | |
--------------------------------------------------------------------------------
| Acquired time charter | | | 0.0 | 0.3 | 0.1 |
| contracts | | | | | |
--------------------------------------------------------------------------------
| TOTAL NON-CURRENT | | | 1,696.1 | 1,702.3 | 1,717.9 |
| LIABILITIES | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Current liabilities | | | | | |
--------------------------------------------------------------------------------
| Mortgage debt and bank | | | 170.1 | 138.5 | 141.5 |
| loans | | | | | |
--------------------------------------------------------------------------------
| Finance lease | | | 1.9 | 0.0 | 1.8 |
| liabilities | | | | | |
--------------------------------------------------------------------------------
| Trade payables | | | 41.9 | 25.6 | 25.0 |
--------------------------------------------------------------------------------
| Current tax | | | 3.0 | 8.7 | 5.7 |
| liabilities | | | | | |
--------------------------------------------------------------------------------
| Other liabilities | | | 75.2 | 100.0 | 82.9 |
--------------------------------------------------------------------------------
| Acquired liabilities | | | 1.8 | 1.8 | 1.8 |
| related to options on | | | | | |
| vessels | | | | | |
--------------------------------------------------------------------------------
| Acquired time charter | | | 0.3 | 8.7 | 3.8 |
| contracts | | | | | |
--------------------------------------------------------------------------------
| Deferred income | | | 0.0 | 0.3 | 0.1 |
--------------------------------------------------------------------------------
| TOTAL CURRENT | | | 294.2 | 283.6 | 262.6 |
| LIABILITIES | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES | | | 1,990.3 | 1,985.9 | 1,980.5 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| TOTAL EQUITY AND | | | 3,210.2 | 3,255.7 | 3,227.2 |
| LIABILITIES | | | | | |
--------------------------------------------------------------------------------
Equity 1 January - 30 June 2010
--------------------------------------------------------------------------------
| Million USD | Comm | Tre | Ret | Propos | Revalu | Hedgi | Trans | Total |
| | on | asu | ain | ed | ation | ng | latio | |
| | | ry | ed | | | | n | |
--------------------------------------------------------------------------------
| | shar | sha | pro | divide | reserv | reser | reser | |
| | es | res | fit | nds | es | ves | ves | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Equity at 1 | 61.1 | -18 | 1,2 | 0.0 | -2.2 | -3.3 | 4.1 | 1,246 |
| January 2010 | | .1 | 05. | | | | | .7 |
| | | | 1 | | | | | |
--------------------------------------------------------------------------------
| Changes in | | | | | | | | |
| equity Q1-Q2 | | | | | | | | |
| 2010: | | | | | | | | |
--------------------------------------------------------------------------------
| Purchase | - | - | - | - | - | - | - | 0.0 |
| treasury | | | | | | | | |
| shares, cost | | | | | | | | |
--------------------------------------------------------------------------------
| Disposal | - | 0.2 | - | - | - | - | - | 0.2 |
| treasury | | | | | | | | |
| shares, cost | | | | | | | | |
--------------------------------------------------------------------------------
| Gain/loss from | - | - | -0. | - | - | - | - | -0.2 |
| disposal | | | 2 | | | | | |
| treasury shares | | | | | | | | |
--------------------------------------------------------------------------------
| Share-based | - | - | 1.3 | - | - | - | - | 1.3 |
| compensation | | | | | | | | |
--------------------------------------------------------------------------------
| Comprehensive | - | - | -21 | - | -0.5 | -5.8 | 0.0 | -28.1 |
| income for the | | | .8 | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Total changes | 0.0 | 0.2 | -20 | 0.0 | -0.5 | -5.8 | 0.0 | -26.8 |
| in equity Q1-Q2 | | | .7 | | | | | |
| 2010 | | | | | | | | |
--------------------------------------------------------------------------------
| Equity at 30 | 61.1 | -17 | 1,1 | 0.0 | -2.7 | -9.1 | 4.1 | 1,219 |
| June 2010 | | .9 | 84. | | | | | .9 |
| | | | 4 | | | | | |
--------------------------------------------------------------------------------
Equity 1 January - 30 June 2009
--------------------------------------------------------------------------------
| Million USD | Comm | Tre | Ret | Propos | Revalu | Hedgi | Trans | Total |
| | on | asu | ain | ed | ation | ng | latio | |
| | | ry | ed | | | | n | |
--------------------------------------------------------------------------------
| | shar | sha | pro | divide | reserv | reser | reser | |
| | es | res | fit | nds | es | ves | ves | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Equity at 1 | 61,1 | -18 | 1.2 | 55,1 | -0,1 | -32,7 | 4,1 | 1.278 |
| January 2009 | | ,1 | 09, | | | | | ,9 |
| | | | 5 | | | | | |
--------------------------------------------------------------------------------
| Changes in | | | | | | | | |
| equity Q1-Q2 | | | | | | | | |
| 2009: | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends paid | - | - | - | -51,2 | - | - | - | -51,2 |
--------------------------------------------------------------------------------
| Dividends paid | - | - | 2,5 | - | - | - | - | 2,5 |
| on treasury | | | | | | | | |
| shares | | | | | | | | |
--------------------------------------------------------------------------------
| Exchange rate | - | - | 3,9 | -3,9 | - | - | - | 0,0 |
| adjustment on | | | | | | | | |
| dividends paid | | | | | | | | |
--------------------------------------------------------------------------------
| Share-based | - | - | 5,8 | - | - | - | - | 5,8 |
| compensation | | | | | | | | |
--------------------------------------------------------------------------------
| Comprehensive | - | - | 6,0 | - | 0,7 | 27,1 | 0,0 | 33,8 |
| income for the | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Total changes | 0,0 | 0,0 | 18, | -55,1 | 0,7 | 27,1 | 0,0 | -9,1 |
| in equity Q1-Q2 | | | 2 | | | | | |
| 2009 | | | | | | | | |
--------------------------------------------------------------------------------
| Equity at 30 | 61,1 | -18 | 1.2 | 0,0 | 0,6 | -5,6 | 4,1 | 1.269 |
| June 2009 | | ,1 | 27, | | | | | ,8 |
| | | | 7 | | | | | |
--------------------------------------------------------------------------------
Statement of cash flows
--------------------------------------------------------------------------------
| Million USD | | | | | |
--------------------------------------------------------------------------------
| | Q2 | Q2 | Q1-Q2 | Q1-Q2 | 2009 |
| | 2010 | 2009 | | | |
--------------------------------------------------------------------------------
| | | | 2010 | 2009 | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Cash flow from operating | | | | | |
| activities | | | | | |
--------------------------------------------------------------------------------
| Operating profit | -10.8 | -2.9 | 9.5 | 46.0 | 49.8 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Adjustments: | | | | | |
--------------------------------------------------------------------------------
| Reversal of profit from sale | 0.0 | -12.5 | -18.2 | -12.5 | -33.1 |
| of vessels | | | | | |
--------------------------------------------------------------------------------
| Reversal of depreciation and | 34.4 | 33.5 | 69.4 | 65.3 | 132.7 |
| impairment losses | | | | | |
--------------------------------------------------------------------------------
| Reversal of impairment of | 0.0 | 0.0 | | 0.0 | 20.0 |
| jointly controlled entities | | | | | |
--------------------------------------------------------------------------------
| Reversal of share of results | 1.3 | 0.7 | 3.7 | -0.2 | 2.3 |
| of jointly controlled | | | | | |
| entities | | | | | |
--------------------------------------------------------------------------------
| Reversal of other non-cash | -3.8 | 5.6 | -7.8 | 5.3 | 1.3 |
| movements | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Dividends received | 0.0 | 0.0 | 0.0 | 0.0 | 0.1 |
--------------------------------------------------------------------------------
| Dividends received from joint | 0.9 | 2.1 | 1.2 | 2.8 | 3.0 |
| controlled entities | | | | | |
--------------------------------------------------------------------------------
| Interest received and | 0.3 | 2.4 | 0.4 | 4.2 | 5.1 |
| exchange rate gains | | | | | |
--------------------------------------------------------------------------------
| Interest paid and exchange | -12.7 | -12.1 | -26.9 | -29.7 | -56.9 |
| rate losses | | | | | |
--------------------------------------------------------------------------------
| Income taxes paid/repaid | 0.0 | -0.1 | -2.9 | -1.8 | -2.7 |
--------------------------------------------------------------------------------
| Change in bunkers, accounts | -9.8 | -4.9 | -7.7 | -6.4 | -5.3 |
| receivables and payables | | | | | |
--------------------------------------------------------------------------------
| Net cash flow from operating | -0.2 | 11.8 | 20.7 | 73.0 | 116.3 |
| activities | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Cash flow from investing | | | | | |
| activities | | | | | |
--------------------------------------------------------------------------------
| Investment in tangible fixed | -69.6 | -44.7 | -93.2 | -174.2 | -288.8 |
| assets | | | | | |
--------------------------------------------------------------------------------
| Investment in equity | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| interests and securities | | | | | |
--------------------------------------------------------------------------------
| Loans to jointly controlled | 1.2 | 1.1 | 2.3 | 2.4 | 4.7 |
| entities | | | | | |
--------------------------------------------------------------------------------
| Payment of liability related | 0.0 | 0.0 | 0.0 | 1.5 | 0.0 |
| to options on vessels | | | | | |
--------------------------------------------------------------------------------
| Received share on options on | 0.0 | 0.0 | 0.0 | 0.0 | 1.5 |
| vessels | | | | | |
--------------------------------------------------------------------------------
| Sale of equity interests and | 0.0 | 0.0 | 0.0 | 0.0 | 4.7 |
| securities | | | | | |
--------------------------------------------------------------------------------
| Sale of non-current assets | 0.1 | 26.0 | 63.7 | 26.0 | 78.5 |
--------------------------------------------------------------------------------
| Net cash flow from investing | -68.3 | -17.6 | -27.2 | -144.3 | -199.4 |
| activities | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Cash flow from financing | | | | | |
| activities | | | | | |
--------------------------------------------------------------------------------
| Borrowing, mortgage debt and | 54.8 | 245.4 | 80.5 | 263.4 | 368.0 |
| finance lease liabilities | | | | | |
--------------------------------------------------------------------------------
| Repayment/redemption, | -51.5 | -177.0 | -74.7 | -199.1 | -282.7 |
| mortgage debt and finance | | | | | |
| lease liabilities | | | | | |
--------------------------------------------------------------------------------
| Dividends paid | 0.0 | -48.7 | 0.0 | -48.7 | -48.7 |
--------------------------------------------------------------------------------
| Purchase/disposals of | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| treasury shares | | | | | |
--------------------------------------------------------------------------------
| Net cash flow from financing | 3.3 | 19.7 | 5.8 | 15.6 | 36.6 |
| activities | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Net cash flow from operating, | -65.2 | 13.9 | -0.7 | -55.7 | -46.5 |
| investing and financing | | | | | |
| activities | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents, | 186.3 | 98.7 | 121.8 | 168.3 | 168.3 |
| beginning balance | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents, | 121.1 | 112.6 | 121.1 | 112.6 | 121.8 |
| ending balance | | | | | |
--------------------------------------------------------------------------------
Statement of cash flows by quarter
--------------------------------------------------------------------------------
| Million USD | | | | | |
--------------------------------------------------------------------------------
| | Q2 09 | Q3 09 | Q4 09 | Q1 10 | Q2 10 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Cash flow from operating | | | | | |
| activities | | | | | |
--------------------------------------------------------------------------------
| Operating profit | -2.9 | 24.2 | -20.4 | 20.3 | -10.8 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Adjustments: | | | | | |
--------------------------------------------------------------------------------
| Reversal of profit from sale of | -12.5 | -20.7 | 0.1 | -18.2 | 0.0 |
| vessels | | | | | |
--------------------------------------------------------------------------------
| Reversal of depreciation and | 33.5 | 35.0 | 32.4 | 35.0 | 34.4 |
| impairment losses | | | | | |
--------------------------------------------------------------------------------
| Reversal of impairment of | 0.0 | 0.0 | 20.0 | 0.0 | 0.0 |
| jointly controlled entities | | | | | |
--------------------------------------------------------------------------------
| Reversal of share of results of | 0.7 | -0.5 | 3.0 | 2.4 | 1.3 |
| jointly controlled entities | | | | | |
--------------------------------------------------------------------------------
| Reversal of other non-cash | 5.6 | -0.6 | -3.4 | -4.0 | -3.8 |
| movements | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Dividends received | 0.0 | 0.0 | 0.1 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Dividends received from joint | 2.1 | 0.0 | 0.2 | 0.3 | 0.9 |
| controlled entities | | | | | |
--------------------------------------------------------------------------------
| Interest received and exchange | 2.4 | 0.1 | 0.8 | 0.1 | 0.3 |
| rate gains | | | | | |
--------------------------------------------------------------------------------
| Interest paid and exchange rate | -12.1 | -14.4 | -12.8 | -14.2 | -12.7 |
| losses | | | | | |
--------------------------------------------------------------------------------
| Income taxes paid/repaid | -0.1 | -0.1 | -0.8 | -2.9 | 0.0 |
--------------------------------------------------------------------------------
| Change in bunkers, accounts | -4.9 | -0.8 | 1.9 | 2.1 | -9.8 |
| receivables and payables | | | | | |
--------------------------------------------------------------------------------
| Net cash flow from operating | 11.8 | 22.2 | 21.1 | 20.9 | -0.2 |
| activities | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Cash flow from investing | | | | | |
| activities | | | | | |
--------------------------------------------------------------------------------
| Investment in tangible fixed | -44.7 | -87.1 | -27.5 | -23.6 | -69.6 |
| assets | | | | | |
--------------------------------------------------------------------------------
| Investment in equity interests | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| and securities | | | | | |
--------------------------------------------------------------------------------
| Loans to jointly controlled | 1.1 | 0.5 | 1.8 | 1.1 | 1.2 |
| entities | | | | | |
--------------------------------------------------------------------------------
| Payment of liability related to | 0.0 | 0.0 | -1.5 | 0.0 | 0.0 |
| options on vessels | | | | | |
--------------------------------------------------------------------------------
| Received share on options on | 0.0 | 0.0 | 1.5 | 0.0 | 0.0 |
| vessels | | | | | |
--------------------------------------------------------------------------------
| Sale of equity interests and | 0.0 | 0.0 | 4.7 | 0.0 | 0.0 |
| securities | | | | | |
--------------------------------------------------------------------------------
| Sale of non-current assets | 26.0 | 52.4 | 0.1 | 63.6 | 0.1 |
--------------------------------------------------------------------------------
| Net cash flow from investing | -17.6 | -34.2 | -20.9 | 41.1 | -68.3 |
| activities | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Cash flow from financing | | | | | |
| activities | | | | | |
--------------------------------------------------------------------------------
| Borrowing, mortgage debt and | 245.4 | 110.5 | -5.9 | 25.7 | 54.8 |
| finance lease liabilities | | | | | |
--------------------------------------------------------------------------------
| Repayment/redemption, mortgage | -177.0 | -14.8 | -68.8 | -23.2 | -51.5 |
| debt and finance lease | | | | | |
| liabilities | | | | | |
--------------------------------------------------------------------------------
| Dividends paid | -48.7 | 0.0 | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Purchase/disposals of treasury | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| shares | | | | | |
--------------------------------------------------------------------------------
| Net cash flow from financing | 19.7 | 95.7 | -74.7 | 2.5 | 3.3 |
| activities | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Net cash flow from operating, | 13.9 | 83.7 | -74.5 | 64.5 | -65.2 |
| investing and financing | | | | | |
| activities | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents, | 98.7 | 112.6 | 196.3 | 121.8 | 186.3 |
| beginning balance | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents, | 112.6 | 196.3 | 121.8 | 186.3 | 121.1 |
| ending balance | | | | | |
--------------------------------------------------------------------------------
