Stock Exchange Release no. 5/2010
Made public via OMX on 25 March 2010
Annual report of Nordic Tankers for 2009
The company reported a loss after tax of USD 94.5 million for 2009, which is in
accordance with the expectations announced in stock exchange release no. 63 of
26 November 2009. Before write-downs, the loss was USD 9.7 million.
Today, the Board of Directors of Nordic Tankers approved the annual report for
2009. The annual report in its entirety in English will be posted on the
company's website early April 2010.
•The financial results were negatively affected by write-downs on vessel values
of USD 84.8 million and the historically weak market conditions resulting from
the global financial crisis. Before write-downs, the loss came to USD 9.7
million. However, the write-downs could create opportunities for rebound in
vessel values when the markets expectedly bounce back.
•In accordance with the company's growth strategy and drive to turn Nordic
Tankers into a full-service shipping company, Nordic Tankers entered into an
agreement with Clipper in November 2009 to combine the product and chemical
tanker activities of the two companies. The agreement, which was strongly
supported by the Nordic Tankers shareholders at an extraordinary general
meeting in December, created a global operator of some 70 product and chemical
tankers with about 110 employees and a solid platform for future growth.
•Following the abrupt slowdown in the world economy in 2009, the global economy
is expected to show signs of recovery in 2010. However, due to the continued
delivery of new tonnage from ship yards world wide, market uncertainty still
persists and it is very difficult to predict the market development. Nordic
Tankers expects revenue to be in the region of USD 60-65 million for 2009 and
EBITDA to be between USD 4 and 8 million. The company expects to report a loss
before tax of between USD 20 and 25 million before write-downs on vessels, if
any. Further, a write-down of about USD 8 million relating to goodwill
recognised in the balance sheet in connection with the accounting treatment of
the transaction with Clipper will be made. This has no effect on liquidity and
no impact on the equity.
•A strengthening of the company's capital base has top priority in the work
agenda of the Board of Directors and the Executive Board. As mentioned earlier,
a share issue with pre-emption rights for existing shareholders is scheduled
for the second quarter of 2010. The management assesses that a combination of
the agreements already concluded with the company's financing banks and an
expected successful rights issue will form a good platform for future growth.
Even without the rights issue, the company's liquidity will be adequate at
least for the rest of 2010, partly due to a new credit facility of USD 7.5
million made available by Clipper.
•In continuation of the agreement with Clipper, the composition of the Board of
Directors has been considered. At the next annual general meeting to be held on
22 April 2010, the Board of Directors will propose the election of three new
Board members with significant experience within shipping and finance. Knud
Pontoppidan, former Executive Vice President of A.P. Møller-Mærsk and former
Managing Director and Chairman of the Danish Shipowners' Association, will be
nominated for the position of Chairman of the Board of Directors of Nordic
Tankers. Moreover, the Board of Directors proposes the election of Erik Bartnes
from Norway, co-founder and chairman of Pareto, a leading investment bank
within shipping, and Henrik Lund Dal, partner and CFO of Clipper Group, where
he has worked for the past 18 years. The Board of Directors proposes
re-election of the Board members Mogens Buschard, Sven Rosenmeyer Paulsen and
Jens Fehrn-Christensen.
Chairman Flemming K. Sørensen says:
”The Board of Directors considers the financial results to be unsatisfactory.
2009 was in many ways a year of change for Nordic Tankers, and the Board of
Directors worked hard to implement the strategy, which led to the agreement
with Clipper.”
CEO Tommy Thomsen says:
”The new management is focused on positioning Nordic Tankers best possible in
the difficult market conditions while pursuing the exciting opportunities that
arise in difficult times. The first step is a successful completion of the
coming rights issue, which will strengthen our balance sheet. Subsequent to
this we will execute our growth plan in order to generate profitable growth and
long-term value for our shareholders.”
This announcement has been made in Danish and English. In case of discrepancies
between the Danish and the English version, the Danish version shall prevail.
For further information, please consult the annual report 2009, or contact:
Chairman of the Board of Directors Flemming K. Sørensen, tel.: +45 40 45 53 59
CEO Tommy Thomsen, tel.: +45 40 32 36 30
Forward-looking statements
This announcement contains forward-looking statements reflecting management's
current perception of future trends and financial performance. Forwardlooking
statements are inherently subject to uncertainty, and Nordic Tankers' actual
results may thus differ from expectations. Factors which could cause actual
results to deviate from the expectations include, but are not limited to,
changes in macroeconomic and political conditions - especially on the shipping
company's main markets, changes in Nordic Tankers' freight rate assumptions and
operating expenses, volatility of rates and vessel prices, regulatory changes,
possible disruptions of traffic and operations resulting from outside events,
etc. This announcement does not constitute an invitation to buy or sell shares
in Nordic Tankers A/S.
