Interim report – Third quarter of 2017

Attached please find the full report as PDF file.

________________________________________________________________________________

Announcement no. 8

9 November 2017

 

Interim report – third quarter of 2017

Today, the Board of Directors approved the interim report for the third quarter of 2017. The full report in English is attached as PDF file and contains the following highlights:

• Results

            Adjusted result for Q3 2017: USD 4 million (Q3 2016: USD -12 million)

            - Dry Cargo: USD 5 million (USD -8 million)

            - Tankers: USD -1 million (USD -4 million)

            Group EBIT Q3 2017: USD -2 million (USD -13 million)

• NORDEN Dry Cargo split into 2 distinct business units; Dry Operator and Dry Owner.

            - This marks an important step in NORDEN’s ambitious plan to increase both profitability and scale of its Dry

              Operator activities.

• Markets

            - Both Dry Cargo and Tanker markets expected to gradually improve in 2018 based on lower supply growth.

• Performance

            - Dry Cargo: TCE earnings 26% above benchmark mainly due to long-term coverage contracts. Portfolio

              well positioned to benefit from improving markets in Q4.

            - Tankers: TCE earnings 16% above benchmark. Close to break-even in a challenging market.

• Vessel values

            - Dry Cargo: +4%

            - Tankers: -1%

• Guidance

            - Expectations for the adjusted results for the year are raised to USD -10 to 30 million (previously USD -20 to

              20 million) as a result of higher expected Dry Cargo earnings.

 

CEO Jan Rindbo in comment:

“NORDEN is well positioned to benefit from the recent significant improvements in the dry cargo market and raises the expectations for the overall full-year results of the Company. With a new focused operator platform for the short-term operator activity in Dry Cargo and a tanker business that continues to outperform the market and has increased the capacity at attractive levels, the conditions for an improved result for the year are now in place.”

 

A telephone conference will be held today at 3:30 p.m. (CET), where CEO Jan Rindbo and CFO Martin Badsted will comment on the report. It is requested that all participants have joined the meeting by latest 3:25 p.m. (CET) –  International participants please dial in on +44 (0)20 3427 1911 or +1 646 254 3361, Danish participants please dial in on +45 3271 1658. The telephone conference will be shown live at www.ds-norden.com, where the accompanying presentation also will be available.

For further information: CEO Jan Rindbo, tel. +45 3315 0451.

 

Key figures and ratios for the group

  

USD million		1/1-30/9 2017	1/1-30/9 2016	1/1-31/12 2016
Income statement
Revenue		1,299.8	922.1	1,251.2
Costs		-1,270.1	-894.3	-1,220.6
Earnings before depreciation, etc. (EBITDA)		29.7	27.8	30.6
Profit from the sale of vessels, etc.		0.9	-38.8	-45.5
Depreciation and write-downs		-31.5	-38.9	-49.6
Earnings from operations (EBIT)		-4.8	-48.2	-64.5
Fair value adjustment of certain hedging instruments		0.0	25.9	34.5
Net financials		0.1	-9.0	-12.3
Results before tax		-4.8	-31.3	-42.2
Results for the period		-2.5	-33.6	-45.6
Adjusted result for the period *		1.3	-20.7	-34.6
Statement of financial position
Non-current assets		797.6	800.7	767.1
Total assets		1,276.0	1,373.2	1,301.0
Equity		801.3	813.6	801.4
Liabilities		474.8	559.7	499.6
Invested capital		834.9	744.2	753.8
Net interest-bearing assets		-33.7	69.4	47.6
Cash and securities		190.8	294.2	263.9
Cash flows
From operating activities		-35.1	-38.4	-79.7
From investing activities		19.9	58.0	102.1
- hereof investments in property, equipment and vessels		-93.1	-70.4	-36.8
From financing activities		6.0	-76.7	-85.3
Change in cash and cash equivalents for the period		-9.1	-57.1	-62.9
Financial and accounting ratios
Share-related key figures and financial ratios:
Number of shares of DKK 1 each (including treasury shares)		42,200,000	42,200,000	42,200,000
Number of shares of DKK 1 each (excluding treasury shares)		40,467,615	40,467,615	40,467,615
Number of treasury shares		1,732,385	1,732,385	1,732,385
Earnings per share (EPS)(DKK)		-0.1 (0)	-0.8 (-6)	-1.1 (-8)
Diluted earnings per share (diluted EPS) (DKK)		-0.1 (0)	-0.8 (-6)	-1.1 (-8)
Book value per share (excluding treasury shares) (DKK) 1)		19.8 (125)	20.1 (134)	19.0 (134)
Share price at end of period, DKK		134.5	94.7	110.5
Price/book value (DKK) 1)		1.1	0.7	0.8
Other key figures and financial ratios:
EBITDA-ratio 2)		2.3%	3.0%	2.4%
ROIC		-0.8%	-8.4%	-8.4%
ROE		-0.4%	-5.4%	-5.5%
Equity ratio		62.8%	59.2%	61.6%
Total no. of ship days for the Group		68,162	57,108	78,765
USD/DKK rate at end of period		630.38	667.62	705.28
Average USD/DKK rate		668.75	667.63	673.27
1) Converted at the USD/DKK rate at end of period. 2) The ratios were computed in accordance with ”Recommendations and Financial Ratios 2015” published by the Danish Society of Financial Analysts. However, ”Profits from the sale of vessels, etc.” have not been included in EBITDA. * Adjusted result for the period was computed as "Results for the period" adjusted for "Profit from the sale of vessels, etc." including vessels in joint ventures and until 31/12-2016 "Fair value adjustment of certain hedging instruments".

________________________________________________________________________________

DAMPSKIBSSELSKABET NORDEN A/S, 52, STRANDVEJEN, DK-2900 HELLERUP, CVR NO. 67758919