Notice to the Stock Exchange no. 25 - 2008
Summary
Nordic Tankers A/S reported a loss of USD 0.2 million for the first half of
2008. The Supervisory Board considers the results to be unsatisfactory. Pre-tax
profit for the full year is expected to amount to USD 22.4 million. Of which
the sale of Nordic Lisbeth contributes with USD 18.7 million. Profit after tax
is expected to be USD 18.8 million.
The results are primarily attributable to a weak first quarter with
extraordinary expenses relating to docking of one of the company's vessels as
well as lower freight rates and higher interest expenses than expected. In the
second quarter, freight rates were higher, but this was not enough to make up
for the poor results posted in the first quarter and the higher than expected
operating expenses and “extraordinary” expenses during the second quarter.
As an element of the Supervisory Board's announced efforts to optimise the
value creation of the company, a binding agreement on the sale of the company's
LR1 tanker NORDIC LISBETH was concluded at the end of July. The vessel is sold
at a price that is USD 19 million higher than the book value of the vessel.
Under the agreement, NORDIC LISBETH is to be delivered not later than on 30
November 2008. The sale will improve the company's net asset value by USD 4
million, which will then amount to DKK 113 per share.
The Supervisory Board of Nordic Tankers is now able to present a strategy for
the coming period. Nordic Tankers will continue to strive to develop as a
significant company within the shipping industry. The company will switch from
being a passive tonnage provider to being an active asset manager. One shipping
segment will be phased out and focus will remain on the other two segments.
The main elements of the new strategy may be summarised as follows:
• Continued focus on shipping
• Development of own organisation
• Disposal of the LR1 tankers
• Reduction from three to two tanker segments
• Development of the engagement in the remaining two segments
• Possible introduction of new shipping segments
The somewhat higher freight rates and higher operating expenses during the
first half of 2008 are expected to continue in the second half of 2008. Thus,
Nordic Tankers expects revenue for the full year 2008 to amount to USD 45.0
million and EBITDA to amount to USD 23.1 million.
For comments to this semi-annual report, please contact
Chairman of the Supervisory Board Steen Bryde, tel.: 20 22 10 11/ +45 38 32 10
00
