ANNOUNCEMENT NO. 11 - 2009
12 August 2009
Revised forecast of profit before tax for 2009
As a result of lower than expected freight rates for product tankers for the
remainder of 2009, TORM revises its forecast for profit before tax from USD 100
-140 million to around break-even. The forecast includes expected negative
mark-to-market non-cash adjustments of approximately USD 20 million and no
further sales of vessels.
The lower freight rates for product tankers are primarily due to lower demand
for transport of oil products as global consumption of oil is expected to be
lower than previously anticipated.
“We are experiencing historically low freight rates for product tankers at the
moment. Our general strategic view of the product tanker market going forward
is unaffected by this fall in rates, and we remain positive on the future
prospects of the segment. We are also pleased to note that our efficiency
improvement programme is almost fully implemented and that the planned cost
savings of USD 40-60 million per year will be achieved from 2010 and onwards,”
says Mikael Skov, CEO of TORM.
As planned, TORM will release its interim financial statements for the first
six months of 2009 on 20 August 2009.
Contact:
Mikael Skov, CEO, tel.: +45 39 17 92 00
Roland M. Andersen, CFO, tel.: +45 39 17 92 00
About TORM
TORM is one of the world's leading carriers of refined oil products as well as
being a significant participant in the dry bulk market. The Company operates a
combined fleet of more than 140 modern vessels, principally through a pooling
cooperation with other respected shipping companies who share TORM's commitment
to safety, environmental responsibility and customer service.
TORM was founded in 1889. The Company conducts business worldwide and is
headquartered in Copenhagen, Denmark. TORM's shares are listed on OMX Nordic
Exchange Copenhagen A/S (ticker TORM) as well as on the NASDAQ (ticker TRMD).
For further information, please visit www.torm.com.
Safe Harbor
Forward Looking
Statements Matters discussed in this release may constitute forward-looking
statements. Forward-looking statements reflect our current views with respect
to future events and financial performance and may include statements
concerning plans, objectives, goals, strategies, future events or performance,
and underlying assumptions and other statements, which are other than
statements of historical facts. The forward-looking statements in this release
are based upon various assumptions, many of which are based, in turn, upon
further assumptions, including without limitation, Management's examination of
historical operating trends, data contained in our records and other data
available from third parties. Although TORM believes that these assumptions
were reasonable when made, because these assumptions are inherently subject
to significant uncertainties and contingencies which are difficult or
impossible to predict and are beyond our control, TORM cannot assure you that
it will achieve or accomplish these expectations, beliefs or projections.
Important factors that, in our view, could cause actual results to differ
materially from those discussed in the forward looking statements include the
strength of world economies and currencies, changes in charter hire rates and
vessel values, changes in demand for “tonne miles” of oil carried by oil
tankers, the effect of changes in OPEC's petroleum production levels and
worldwide oil consumption and storage, changes in demand that may affect
attitudes of time charterers to scheduled and unscheduled dry-docking, changes
in TORM's operating expenses, including bunker prices, dry-docking and
insurance costs, changes in governmental rules and regulations including
requirements for double hull tankers or actions taken by regulatory
authorities, potential liability from pending or future litigation, domestic
and international political conditions, potential disruption of shipping routes
due to accidents and political events or acts by terrorists. Risks and
uncertainties are further described in reports filed by TORM with the US
Securities and Exchange Commission, including the TORM Annual Report on Form
20-F and its reports on Form 6-K.
Forward looking statements are based on management's current evaluation, and
TORM is only under obligation to update and change the listed expectations to
the extent required by law.
