A/S Dampskibsselskabet TORM
A/S Dampskibsselskabet TORM – Half Year Financial Report

A/S Dampskibsselskabet TORM / 

Release of a Corporate News, transmitted by DGAP - a company of EquityStory
AG.
The issuer / publisher is solely responsible for the content of this announcement.
----------------------------------------------------------------------

The result for the first six months of the year is the best in the history of
TORM when excluding the sale of TORM's shareholding in the shipping company
Norden. We have been favoured by high rates in the tanker market, and taking
the market situation and our coverage into consideration, the positive
development seems to continue in the near future, says CEO Klaus Kjærulff.
The integration of new employees and vessels from OMI has been smooth,
however, we are still very focused on creating a global organisation that is
geared for further growth. 
 
	The pre-tax profit for the first six months of 2008 was USD 199 million. The
result is better than expected and highly satisfactory. The pre-tax profit for
the second quarter of 2008 was USD 146 million. 

	At 30 June 2008, equity amounted to USD 1,211 million (DKK 5,726 million),
equivalent to USD 17.5 per share (DKK 82.7 per share) excluding treasury
shares. 

	The market value of TORM's fleet, including the order book, exceeded book
value by USD 1,723 million at 30 June 2008, equivalent to USD 24.9 per share
(DKK 117.7 per share), excluding treasury shares. 

	At the end of the second quarter, product tanker rates were significantly
higher than expected. In particular, the global demand for transport of crude
oil, imports of gasoline to the USA and imports of naphtha to the Far East
contributed positively. As a result of the high fuel prices, TORM has, like
other shipping companies, reduced the speed of its vessels, which is expected
to continue into 2009. This has reduced the supply of available tonnage on the
market. As at 31 July 2008, TORM had hedged 57% of the remaining earning days
in the Tanker Division at USD 23,494 per day. 

	Bulk rates were also higher than expected in the second quarter. This is
primarily due to growing Chinese imports of iron ore combined with growing
global demand for coal. As at 31 July 2008, TORM had hedged 83% of the
remaining earning days in the Bulk Division at USD 50,039 per day. 

	TORM has sold TORM Gotland in the third quarter, leading to an upgrade of the
full-year profit forecast on 18 July 2008 (announcement no. 15/2008). TORM has
also sold the MR vessel TORM Wabash in the third quarter. The combined profit
from these two sales was USD 30.5 million. 

	In the third quarter, TORM has ordered two MR vessels, with an option for an
additional two MR vessels, to be delivered in 2011 and 2012 respectively. The
total order book incl. options for the two MR vessels amounts to 23 vessels. 

	TORM forecasts a pre-tax profit for 2008 of USD 355 - 370 million as
announced on 11 August 2008 when the full-year forecast was upgraded
(announcement no. 16/2008). 

	At 31 July 2008, TORM had hedged a fourth of the total fleets' earning days
for 2009. 

Teleconference	
A teleconference and webcast (www.torm.com) will take place today, 20 August
2008, at 17:00 Copenhagen time (CET). To participate, please call 10 minutes
before the call on tel.: +45 3271 4607 (from Europe) or +1 334 323 6201 (from
the USA). A replay of the conference will be available from TORM's website. 


Contact	
A/S Dampskibsselskabet TORM		
Tuborg Havnevej 18                                        
DK-2900 Hellerup                                            
Denmark	
Telephone: +45 39 17 92 00
Klaus Kjærulff, CEO
Mikael Skov, COO
Roland M. Andersen, CFO	
 
Key figures

Million USD	Q2 2008	Q2 2007	Q1-Q2 2008	Q1-Q2 2007	2007
Income statement					
Net revenue	286.6	179.5	541.6	341.3	773.6
Time charter equivalent earnings (TCE)	235.9	139.5	436.0	265.0	604.3
Gross profit	146.4	79.8	257.0	148.5	333.9
EBITDA	181.7	70.3	276.2	130.5	294.1
Operating profit	158.0	53.5	220.0	99.1	199.0
Profit before tax	146.4	59.0	198.5	739.2	804.2
Net profit	145.4	66.0	197.6	740.4	791.7
Balance sheet 					
Total assets	3,211.1	2,904.1	3,211.1	2,904.1	2,958.9
Equity	1,210.6	1,375.4	1,210.6	1,375.4	1,081.2
Total liabilities	2,000.5	1,528.7	2,000.5	1,528.7	1,877.7
Invested capital	2,888.2	2,346.1	2,888.2	2,346.1	2,618.5
Net interest bearing debt	1,689.3	981.4	1,689.3	981.4	1,548.3
Cash flow					
From operating activities	89.2	72.6	152.9	119.9	187.9
From investing activities	-7.4	-319.8	-228.6	-365.3	-356.6
	Thereof investment in tangible fixed assets	-78.2	-115.2	-181.1	-144.0	-252.2
From financing activities	-80.3	615.1	49.0	635.4	242.1
Net cash flow	1.5	367.9	-26.7	390.0	73.4
Key financial figures 					
Margins:					
	TCE 	82.3%	77.7%	80.5%	77.6%	78.1%
	Gross profit	51.1%	44.5%	47.5%	43.5%	43.2%
	EBITDA	63.4%	39.2%	51.0%	38.2%	38.0%
	Operating profit 	55.1%	29.8%	40.6%	29.0%	25.7%
Return on Equity (RoE) (p.a.)*)	36.4%	19.1%	30.0%	63.1%	67.1%
Return on Invested Capital (RoIC) (p.a.)**)	16.7%	11.6%	14.1%	11.9%	10.2%
Equity ratio	37.7%	47.4%	37.7%	47.4%	36.5%
Exchange rate USD/DKK, end of period	4.73	5.51	4.73	5.51	5.08
Exchange rate USD/DKK, average	4.78	5.53	4.87	5.61	5.44
Share related key figures					
Earnings per share, EPS	USD	2.1	1.0	2.9	10.7	11.4
Diluted earnings per share, DEPS 	USD	2.1	1.0	2.9	10.7	11.4
Cash flow per share, CFPS 	USD	1.3	1.0	2.2	1.7	2.7
Share price, end of period
(per share of DKK 5 each) 	DKK	167.1	207.6	167.1	207.6	178.2
Number of shares, end of period 	Mill.	72.8	72.8	72.8	72.8	72.8
Number of shares (excl. treasury shares),
average 	Mill.	69.2	69.2	69.2	69.2	69.2
*) The gain from the sale of the Norden shares is not annualized when
calculating the Return on Equity for Q1-Q2 2007,and the gain from sale of 
vessels not is annualized when calculating the Return on Equity in 2008. 
**)The gain from sale of vessels is not annualized when calculating the Return
on Invested Capital in 2008 
Profit by division

Million USD	Q2 2008	Q1-Q2 2008
	Tanker	Bulk	Not	 	Tanker	Bulk	Not	 
 	Division	Division 	Allocated	Total	Division	Division 	Allocated	Total
Revenue	215.0	71.6	0.0	286.6	415.8	125.8	0.0	541.6
Port expenses, bunkers and
commissions	-56.9	-2.5	0.0	-59.4	-108.7	-5.2	0.0	-113.9 
Freight and bunkers derivatives	8.7	0.0	0.0	8.7	8.3	0.0	0.0	8.3
Time charter equivalent earnings 	166.8	69.1	0.0	235.9	315.4	120.6	0.0	436.0
Charter hire	-30.6	-13.7	0.0	-44.3	-61.7	-28.6	0.0	-90.3
Operating expenses	-41.2	-4.0	0.0	-45.2	-80.8	-7.9	0.0	-88.7
Gross Profit	95.0	51.4	0.0	146.4	172.9	84.1	0.0	257.0
Profit from sale of vessels	0.0	52.0	0.0	52.0	0.0	52.0	0.0	52.0
Administrative expenses	-18.1	-1.7	0.0	-19.8	-36.2	-3.3	0.0	-39.5
Other operating income	3.1	0.0	0.0	3.1	6.7	0.0	0.0	6.7
Depreciation and impairment losses	-29.1	-2.0	0.0	-31.1	-58.0	-3.8	0.0	-61.8
Share of results of jointly controlled entities	1.6	0.0	5.8	7.4	2.8	0.0	2.8	5.6
Operating profit	52.5	99.7	5.8	158.0	88.2	129.0	2.8	220.0
Financial items	-	-	-11.6	-11.6	-	-	-21.5	-21.5
Profit/(Loss) before tax	-	-	-5.8	146.4	-	-	-18.7	198.5
Tax	-	-	-1.0	-1.0	-	-	-0.9	-0.9
Net profit 	-	-	-6.8	145.4	-	-	-19.6	197.6
'Not-allocated' includes the activity that TORM owns in a 50/50 joint venture
with Teekay, as well as the activity that relates to TORMs 50% share in FR8. 

Tanker Division 	The Tanker Division achieved an operating profit of USD 52.5
million in the second quarter of 2008 against USD 35.7 million in the first
quarter of 2008. The share of results of jointly controlled entities includes
FR8 with USD 8.6 million and OMI with USD -2.9 million. 

Following a sluggish first quarter during which much of the winter market
failed to materialise, the demand for tonnage increased substantially in the
second quarter, boosting freight rates more than expected. In particular, the
rates in the LR2 segment were high in the second quarter, but also the rates in
the LR1 and MR segments grew more than expected. The rates in the LR1 and LR2
segments have continued to rise in the early part of the third quarter, whereas
rates for the smaller MR and SR vessels remain at a high level. 

The tanker market was affected by the following substantial factors in the
second quarter of 2008: 
Positive impact:	
	Strong demand for transport of crude oil increased earnings, especially for
the large LR1 and LR2 product tankers. 
	Increased demand for naphtha in the Far East, partly from Europe, resulted in
higher earnings from the LR1 and LR2 product tankers. 
	Increased imports of refined oil products to West Africa. 
	A more balanced distribution of cargo volumes, primarily of gasoline to the
USA and diesel from the USA to Europe, increased capacity utilisation on the
smaller MR vessels. 
	As a result of the high fuel prices, TORM and other shipping companies have
reduced the speed of their vessels, reducing fuel consumption and also the
supply of available tonnage on the market to the benefit of freight rates. 
	Increase in the number of port days in 2008, which has increased by
approximately 3% for TORM's fleet, has been an important factor in the balance
between supply and demand. 

Negative impact:
	Declining economic growth, especially in the USA, but also in other parts of
the world. 
	Declining growth in the global demand for oil.
	Although the high fuel costs have indirectly had a favourable impact on the
market, as mentioned above, fuel costs in general were higher in the second
quarter. 

TORM's Tanker Division achieved freight rates in the second quarter of 2008
which were 7% lower than in the second quarter of 2007 for the LR1 segment and
18% lower for the MR segment, whereas the rates obtained for the LR2 segment
were 10% higher. As a result of the acquisition of OMI and the extensive
newbuilding programme, capacity and thus the number of earning days for TORM's
aggregate product tanker fleet increased by 70% in the second quarter of 2008
compared with the same period of 2007. 

Tanker Division	Q2 07	Q3 07	Q4 07	Q1 08
		Q2 08
	Change
Q1 07
- Q1 08 	12 month avg.
LR2 (Aframax, 90-110,000 DWT)								
Available earning days	767	906	903	908		926	21%	
TCE per earning day1)	29,073	21,841	23,316	28,538		32,084	10%	26,479
Operating days	713	818	864	865		896	26%	
Operating expenses per operating day2)	8,144	6,471	6,466	8,270		7,906	-3%	7,295
LR1 (Panamax 75-85,000 DWT)								
Available earning days	1.319	1.577	1.702	1.822		1.764	34%	
TCE per earning day1)	29,059	27,448	26,548	23,533		27,036	-7%	26,080
Operating days	633	685	695	682		687	9%	
Operating expenses per operating day2)	6,188	4,955	5,336	6,538		7,028	14%	5,962
MR (45,000 DWT)								
Available earning days	1,652	2,223	2,497	2,490		2,576	56%	
TCE per earning day1)	28,143	22,978	21,715	22,716		23,158	-18%	22,636
Operating days	1,456	2,089	2,393	2,368		2,533	74%	
Operating expenses per operating day2)	7,480	6,147	8,224	8,260		7,885	5%	7,679
SR (35,000 DWT)								
Available earning days	n.a.	732	1,104	1,088		1,092	n.a.	
TCE per earning day1)	n.a.	16,129	17,121	21,034		21,036	n.a.	19,065
Operating days	n.a.	732	1,104	910		911	n.a.	
Operating expenses per operating day2)	n.a.	5,460	7,255	8,182		7,898	n.a.	7,287
1)  Time Charter Equivalent (TCE) = Gross freight income less bunker,
commissions and port expenses. In the second quarter un-allocated earnings
amounts to USD 7.3 million and comprise of fair value adjustment of freight and
bunkers derivatives, which are not designated as hedges, and gains and losses
on freight and bunkers derivatives, which are not entered for hedge purposes. 
2)  Operating expenses is related owned vessels. In the second quarter
un-allocated expenses amounted to USD 2.2 million and comprised expenses not
relating to the daily operation of our vessels. 



Bulk Division	The Bulk Division achieved an operating profit of USD 99.7
million in the second quarter of 2008, of which USD 52 million related to the
sale of TORM Marlene. 

The bulk rates continue to be dependent on developments mainly in the Chinese
markets, but also in India, Japan and South America. The rates were better than
expected in the second quarter, primarily as a result of growing Chinese steel
production and imports of iron ore combined with increasing global demand for
coal. 

The number of available earning days in TORM's  Panamax segment was 12% higher
in the second quarter of 2008 than in the second quarter of 2007. Earnings per
day have almost doubled since the second quarter of 2007 as a result of higher
freight rates. 

Bulk Division	Q2 07	Q3 07	Q4 07	Q1 08
		Q2 08
	Change
Q1 07
- Q1 08 	12 month avg.
Panamax (60-80,000 DWT)								
Available earning days	1,222	1,258	1,287	1,394		1,367	12%	
TCE per earning day1)	25,467	27,019	27,443	36,909		50,568	99%	35,787
Operating days	493	546	559	565		585	19%	
Operating expenses per operating day2)	5,562	4,580	5,392	6,940		6,647	20%	5,909
1)  TCE = Gross freight income less bunker, commissions and port expenses.
2)  Operating expenses is related owned vessels. In the second quarter
un-allocated expenses amounted to USD 0.1 million and comprised expenses not
relating to the daily operation of our vessels. 


Other activities	Other (non-allocated) activities for the first six months of
2008 consist of share of result in jointly controlled entities of USD 2.8
million, financial items of USD -21.5 million and tax of USD -0.9 million. 

Fleet development	At the end of the second quarter of 2008, TORM's owned fleet
totalled 64 vessels, 58 of which were product tankers and six bulk carriers.
For the remainder of 2008, TORM has chartered in approximately 15 product
tankers and approximately 9 bulk carriers leading to a total fleet of 88
vessels. 
	
	Own vessels	T/C vessels	Total
	31 March 2008	Additions	Disposals	30 June 2008	30 June 2008	
LR2 / Aframax	9.5	1.0	-	10.5	1.4	11.9
LR1 / Panamax	7.5	-	-	7.5	10.9	18.4
MR	29.0	1.0	-	30.0	0.8	30.8
SR	10.0	-	-	10.0	2.0	12.0
Tanker	56.0	2.0	0.0	58.0	15.1	73.1
Panamax	7.0	-	1.0	6.0	9.1	15.1
Bulk	7.0	0.0	1.0	6.0	9.1	15.1
Total	63.0	2.0	1.0	64.0	24.2	88.2

	
 
Planned			TORM has ordered two MR vessels in the third quarter, with an option
for an additional two 
fleet changes		MR vessels, for delivery in 2011 and 2012 respectively.	

  	
	
Pools	At 30 June 2008, the three product tanker pools TORM participates in
comprised 81 vessels. To this should be added 23 vessels which TORM operates
outside pools. At the end of 2008, the three pools are expected to comprise a
total of 94 vessels. 

	Results

Second quarter 2008	The second quarter of 2008 showed a gross profit of USD 146
million, against USD 80 million for the corresponding quarter of 2007. Profit
before depreciation (EBITDA) for the period was USD 182 million, against USD 70
million for the second quarter of 2007. The increase in both gross profit and
EBITDA is primarily due to a larger number of earning days in the Tanker
Division and higher earnings in the Bulk Division. 

In the second quarter of 2008, depreciation amounted to USD 31 million.

The operating profit for the second quarter of 2008 was USD 158 million,
against USD 53 million in the same quarter of 2007. The Tanker and Bulk
Divisions contributed USD 53 million and USD 100 million respectively, whereas
USD 6 million is unallocated. 

In the second quarter of 2008, financial items amounted to USD -12 million,
against USD 6 million in the same quarter of 2007. The difference is explained
by interest income in the second quarter of 2007 following TORM's sale of its
stake in Norden. 

Profit after tax in the second quarter was USD 145 million, including a gain of
USD 52 million from the sale of vessels, against USD 66 million in the second
quarter of 2007. 

Assets	Total assets rose in the second quarter of 2008 from USD 3,153 million
to USD 3,211 million. 

Liabilities	In the second quarter of 2008, the Company's net interest bearing
debt decreased from USD 1,706 million to USD 1,689 million. The item primarily
includes higher net debt in connection with the delivery of vessels, the effect
on liquidity from the distribution of dividend and the positive cash flow from
operations during the period. 

The Company has considerable undrawn loan facilities at its disposal. 

Equity	In the second quarter of 2008, equity rose from USD 1,130 million to USD
1,211 million, which was the result of earnings during the period less
dividends paid. Equity as a percentage of total assets increased from 35.8% at
31 March 2008 to 37.7% at 30 June 2008. 

At 30 June 2008, TORM held 3,556,364 treasury shares, corresponding to 4.9% of
the Company's share capital, which was unchanged from 31 March 2008. 

Subsequent events	In the third quarter of 2008, TORM has sold TORM Gotland for
USD 36.1 million and TORM Wabash for USD 63.4 million. The combined profit was
USD 30.5 million. 

Expectations	TORM forecasts a pre-tax profit for 2008 of USD 355 - 370 million
as announced on 11 August 2008 (announcement no. 16/2008). 

Sensitivity	At 31 July 2008, approximately 83% of the earning days of the
Company's Panamax bulk carriers were covered for the remainder of the year. For
the Tanker Division, approximately 57% of the remaining earning days were
covered for the rest of the year. 
	
 

At 31 July, TORM had hedged the price of 28% of the remaining bunker
requirement for the remainder of 2008 and the market value of the contracts was
USD 0.9 million. 

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. 

The TORM share

The price of a TORM share was DKK 167.1 as of 30 June 2008, against DKK 140.5
at the beginning of the second quarter - equivalent to an increase of DKK 26.6
(19%). 

In the second quarter, the Company distributed a dividend of DKK 4.5 per share.

The total return to shareholders for the second quarter of 2008 was DKK 31.1
per share (calculated excluding reinvestment), corresponding to a total return
of 22%. 




Accounting policies 

The interim report for the first half of 2008 has been prepared using the same
accounting policies as for the Annual Report 2007, except that the Company has
changed its accounting policy for the recognition of investments in joint
ventures so that these are recognised according to the equity method.
Previously, joint ventures were recognised on a pro rata basis. The change in
accounting policy is due to the fact that the Company finds it inappropriate to
aggregate the items of joint ventures with items of entities that form an
integral part of the Company's activities. The change in accounting policies
has no effect on the income statement or on equity, but the profit for the year
of joint ventures and the investment in these are presented in a single line
item in the income statement and the balance sheet, respectively. In addition,
the pre-acquisition balance sheet associated with the acquisition of 50% of OMI
in June 2007 has now been finalized. As a result of the change in accounting
policies and the finalization of the OMI pre-acquisition balance sheet, the
operating profit and net cash flows for 2007 were reduced by USD 5.9 million
and USD 11.6 million, respectively, and invested capital at 31 December 2007
was increased by USD 12.5 million. 

TORM has also implemented IAS 34, Interim Financial Reporting'. The
implementation has not led to any changes in the income statement or equity,
but has caused minor changes to the presentation and a few additions to the
disclosures. 

The accounting policies are described in more detail in the Annual Report 2007.

The financial report for the first half of 2008 is unaudited, in line with the
normal practice. 


Information

Teleconference

TORM will host a teleconference for financial analysts and investors on 20
August 2008 at 17:00 Copenhagen time (CET), reviewing the interim report for
the second quarter of 2008. The conference call will be hosted by Klaus
Kjærulff, CEO, Mikael Skov, COO and Roland M. Andersen, CFO and will be
conducted in English. 

To participate, please call 10 minutes before the conference on tel.: +45 3271
4607 (from Europe) or +1 334 323 6201 (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 third quarter of 2008 will be released on 21
November 2008. 

Statement by the Board of Directors and Management on the Interim Report

The Board of Directors and Management have considered and approved the interim
report for the period 1 January - 30 June 2008. 

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 in IFRS which are expected
to be applicable for the Annual Report 2008. 

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, 20 August 2008

Management			Board of Directors

Klaus Kjærulff, CEO		Niels Erik Nielsen, Chairman
Mikael Skov, COO		Christian Frigast, Deputy Chairman 
Roland M. Andersen, CFO		Peter Abildgaard
			Lennart Arrias
			Margrethe Bligaard
			Bo Jagd
			Gabriel Panayotides
			Michael Steimler
			Nicos Zouvelos	

About TORM	TORM is one of the world's leading carriers of refined oil products
as well as a significant participant in the dry bulk market. The Company
operates a combined fleet of more than 125 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. TORM's shares are listed on the OMX Nordic
Exchange Copenhagen (symbol: TORM) and on NASDAQ (symbol: TRMD). For further
information, please visit www.torm.com. 

 
Income Statement

Million USD	Q2 2008	Q2 2007	Q1-Q2 2008	Q1-Q2 2007	2007
Revenue	286.6	179.5	541.6	341.3	773.6
Port expenses, bunkers and commissions	-59.4	-39.2	-113.9	-76.5	-172.2
Freight and bunkers derivatives	8.7	-0.8	8.3	0.2	2.9
Time charter equivalent earnings	235.9	139.5	436.0	265.0	604.3
Charter hire	-44.3	-36.1	-90.3	-70.5	-154.9
Operating expenses	-45.2	-23.6	-88.7	-46.0	-115.5
Gross profit (Net earnings from shipping activities)
	146.4	79.8	257.0	148.5	333.9 
Profit from sale of vessels	52.0	0.0	52.0	0.0	0.0
Administrative expenses	-19.8	-12.8	-39.5	-24.0	-55.0
Other operating income	3.1	3.3	6.7	6.0	15.2
Depreciation and impairment losses	-31.1	-15.1	-61.8	-29.9	-89.1
Share of results of jointly controlled entities	7.4	-1.7	5.6	-1.5	-6.0
Operating profit	158.0	53.5	220.0	99.1	199.0
Financial items	-11.6	5.5	-21.5	640.1	605.2
Profit before tax	146.4	59.0	198.5	739.2	804.2
Tax	-1.0	7.0	-0.9	1.2	-12.5
Net profit 	145.4	66.0	197.6	740.4	791.7
Earnings per share, EPS					
Earnings per share, EPS (USD) 	2.1	1.0	2.9	10.7	11.4
Earnings per share, EPS (DKK) *) 	9.9	5.3	13.9	59.9	62.3

*) The key figures have been translated from USD to DKK using the average
USD/DKK exchange change rate for the period in question. 
 
Income statement by quarter


Million USD	Q2 07	Q3 07	Q4 07	Q1 08	Q2 08
Revenue	179.5	208.1	224.2	255.0	286.6
Port expenses, bunkers and commissions	-39.2	-46.0	-49.7	-54.5	-59.4
Freight and bunkers derivatives	-0.8	0.3	2.4	-0.4	8.7
Time charter equivalent earnings	139.5	162.4	176.9	200.1	235.9
Charter hire	-36.1	-42.4	-42.0	-46.0	-44.3
Operating expenses	-23.6	-29.9	-39.6	-43.5	-45.2
Gross profit (Net earnings from shipping activities) 	79.8	90.1	95.3	110.6	146.4
Profit from sale of vessels	0.0	0.0	0.0	0.0	52.0
Administrative expenses	-12.8	-14.3	-16.7	-19.7	-19.8
Other operating income	3.3	3.0	6.2	3.6	3.1
Depreciation and impairment losses	-15.1	-26.6	-32.6	-30.7	-31.1
Share of results of jointly controlled entities	-1.7	-4.1	-0.4	-1.8	7.4
Operating profit	53.5	48.1	51.8	62.0	158.0
Financial items	5.5	-10.4	-24.5	-9.9	-11.6
Profit before tax	59.0	37.7	27.3	52.1	146.4
Tax	7.0	-2.9	-10.8	0.1	-1.0
Net profit	66.0	34.8	16.5	52.2	145.4
 
Assets

Million USD	30 June
2008	30 June
2007	31 December 2007
NON-CURRENT ASSETS			
Intangible assets			
Goodwill	89.2	0.0	89.2
Other intangible assets	3.9	1.7	7.5
Total intangible assets	93.1	1.7	96.7
Tangible fixed assets			
Land and buildings	3.9	0.4	4.2
Vessels and capitalized dry-docking	2,168.7	1,251.6	2,169.8
Prepayments on vessels	313.6	164.2	259.4
Other plant and operating equipment	6.5	3.7	5.9
Total tangible fixed assets	2,492.7	1,419.9	2,439.3
Financial fixed assets			
Investment in jointly controlled entities	109.0	1.3	0.0
Loans to jointly controlled entities	111.8	940.1	110.0
Other investments	11.7	10.7	11.0
Other financial assets	46.0	0.0	46.0
Total financial assets	278.5	952.1	167.0
			
TOTAL NON-CURRENT ASSETS	2,864.3	2,373.7	2,703.0
CURRENT ASSETS			
Bunkers	26.1	16.3	19.7
Freight receivables, etc.	101.9	63.3	90.0
Other receivables	79.9	24.2	37.0
Prepayments	7.9	5.0	4.2
Cash and cash equivalents	78.3	421.6	105.0
	294.1	530.4	255.9
			
Non-current assets held for sale	52.7	0.0	0.0
			
TOTAL CURRENT ASSETS	346.8	530.4	255.9
			
TOTAL ASSETS	3,211.1	2,904.1	2,958.9

 
Equity and Liabilities 

Million USD	30 June
2008	30 June
2007	31 December 2007
EQUITY			
Common shares	61.1	61.1	61.1
Treasury shares	-18.1	-18.1	-18.1
Revaluation reserves	5.2	7.2	7.3
Retained profit	1,154.1	1,316.1	953.6
Proposed dividends	0.0	0.0	64.5
Hedging reserves	4.1	4.9	8.7
Translation reserves	4.2	4.2	4.1
TOTAL EQUITY	1,210.6	1,375.4	1,081.2
LIABILITIES			
Non-current liabilities			
Deferred tax liability	55.4	56.0	55.6
Mortgage debt and bank loans	1,572.4	770.6	884.6
Acquired liabilities related to options on vessels	31.6	0.0	31.6
Acquired time charter contracts	8.8	0.0	16.0
TOTAL NON-CURRENT LIABILITIES	1,668.2	826.6	987.8
			
Current liabilities			
Mortgage debt and bank loans	195.2	632.4	768.7
Trade payables	48.6	21.5	42.6
Current tax liabilities	14.1	11.3	14.5
Other liabilities	59.4	35.5	44.2
Acquired time charter contracts	12.7	0.0	16.0
Deferred income	2.3	1.4	3.9
TOTAL CURRENT LIABILITIES	332.3	702.1	889.9
			
TOTAL LIABILITIES	2,000.5	1,528.7	1,877.7
TOTAL EQUITY AND LIABILITIES	3,211.1	2,904.1	2,958.9

 
Equity 1 January - 30 June 2008

Million
USD	Common	Treasury	Retained	Proposed	Revaluation	Hedging	Translation	Total 
	shares	shares	profit	dividends	reserves	reserves	reserves	
Equity at 1 January 2008	61.1	-18.1	953.6	64.5	7.3	8.7	4.1	1,081.2
Changes in equity Q1-Q2 2008:								
Exchange rate adjustment arising on translation								
   of entities using a measurement currency different								
   from USD	-	-	-	-	-	-	0.1	0.1
Reversal of deferred gain/loss on hedge instruments 								
   at the beginning of year	-	-	-	-	-	-8.7	-	-8.7
Deferred gain/loss on hedge instruments at the end 								
   of the period	-	-	-	-	-	4.1	-	4.1
Fair value adjustment on available for sale investments 	-	-	-	-	-2.1	-	-	-2.1
Transfer to profit or loss on sale of available for sale 								
   Investments	-	-	-	-	-	-	-	0.0
Net gains/losses recognised directly in
equity	0.0	0.0	0.0	0.0	-2.1	-4.6	0.1	-6.6 
Net profit for the period	 	 	197.6	 	 	 	 	197.6
Total recognized income/expenses for the
period	0.0	0.0	197.6	0.0	-2.1	-4.6	0.1	191.0 
Purchase treasury shares, cost	-	-	-	-	-	-	-	0.0
Disposal treasury shares, cost	-	-	-	-	-	-	-	0.0
Dividends paid	-	-	-	-68.6	-	-	-	-68.6
Dividends paid on treasury shares	-	-	3.3	-	-	-	-	3.3
Exchange rate adjustment on dividends paid	-	-	-4.1	4.1	-	-	-	0.0
Share-based compensation	-	-	3.7	-	-	-	-	3.7
Total changes in equity Q1-Q2 2008:	0.0	0.0	200.5	-64.5	-2.1	-4.6	0.1	129.4
Equity at 30 June 2008	61.1	-18.1	1,154.1	0.0	5.2	4.1	4.2	1,210.6

 
Equity 1 January - 30 Juni 2007	

Million
USD	Common	Treasury	Retained	Proposed	Revaluation	Hedging	Translation	Total 
	shares	shares	profit	dividends	reserves	reserves	reserves	
Equity at 1 January 2007	61.1	-18.1	574.5	73.9	579.8	5.6	4.0	1,280.8
Changes in equity Q1-Q2 2007:								
Exchange rate adjustment arising on translation								
   of entities using a measurement currency different								
   from USD	-	-	-	-	-	-	0.2	0.2
Reversal of deferred gain/loss on hedge instruments 								
    at the beginning of year	-	-	-	-	-	-5.6	-	-5.6
Deferred gain/loss on hedge instruments at the end 								
    of the  period	-	-	-	-	-	4.9	-	4.9
Fair value adjustment on available for sale investments	-	-	-	-	70.7	-	-	70.7
Transfer to profit or loss on sale of available for sale								
   Investments	-	-	-	-	-643.3	-	-	-643.3
Net gains/losses recognised directly in
equity	0.0	0.0	0.0	0.0	-572.6	-0.7	0.2	-573.1 
Net profit for the period	 	 	740.4	 	 	 	 	740.4
Total recognized income/expenses for the
period	0.0	0.0	740.4	0.0	-572.6	-0.7	0.2	167.3 
Purchase treasury shares, cost	-	-	-	-	-	-	-	0.0
Disposal treasury shares, cost	-	-	-	-	-	-	-	0.0
Dividends paid	-	-	-	-76.4	-	-	-	-76.4
Dividends paid on treasury shares	-	-	3.7	-	-	-	-	3.7
Exchange rate adjustment on dividends paid	-	-	-2.5	2.5	-	-	-	0.0
Total changes in equity Q1-Q2 2007:	0.0	0.0	741.6	-73.9	-572.6	-0.7	0.2	94.6
Equity at 30 June 2007	61.1	-18.1	1,316.1	0.0	7.2	4.9	4.2	1,375.4

 
Cash flow statement

Million USD	Q2 2008	Q2 2007	Q1-Q2 2008	Q1-Q2 2007	2007
Cash flow from operating activities					
Operating profit	158.0	53.5	220.0	99.1	199.0
Adjustments:					
Reversal of profit from sale of vessels	-52.0	0.0	-52.0	0.0	0.0
Reversal of depreciation and impairment losses	31.1	15.1	61.8	29.9	89.1
Reversal of share of results of jointly controlled
entities	-7.4	1.7	-5.6	1.5	6.0 
Reversal of other non-cash movements	-2.4	-3.5	-7.0	2.8	2.7
Dividends received	1.2	1.1	1.4	1.3	1.3
Dividends received from joint controlled entities	0.2	2.0	1.5	2.0	2.6
Interest received and exchange rate gains	2.8	13.8	12.5	14.3	19.9
Interest paid	-18.4	-14.1	-42.3	-23.5	-70.8
Income taxes paid	-0.3	0.1	-1.6	0.8	-9.5
Change in inventories, accounts receivables and
payables	-23.6	2.9	-35.8	-8.3	-52.4 
Net cash inflow/(outflow) from operating activities	89.2	72.6	152.9	119.9	187.9
Cash flow from investing activities					
Investment in tangible fixed assets	-78.2	-115.2	-181.1	-144.0	-252.2
Investment in equity interests and securities	-15.1	0.3	-133.5	-0.2	0.0
Loans to jointly controlled entities	0.0	-909.1	0.0	-925.4	-31.3
Acquisition of enterprises and activities	0.0	0.0	0.0	0.0	-810.2
Sale of equity interests and securities	17.4	704.2	17.4	704.2	736.9
Sale of non-current assets	68.5	0.0	68.6	0.1	0.2
Net cash inflow/(outflow) from investing
activities	-7.4	-319.8	-228.6	-365.3	-356.6 
Cash flow from financing activities					
Borrowing, mortgage debt and other financial
liabilities	869.8	795.4	1,007.4	820.9	1,807.9 
Repayment/redemption, mortgage debt	-884.8	-107.6	-893.1	-112.8	-1,141.8
Dividends paid	-65.3	-72.7	-65.3	-72.7	-424.0
Purchase/disposals of treasury shares	0.0	0.0	0.0	0.0	0.0
Cash inflow/(outflow) from financing activities	-80.3	615.1	49.0	635.4	242.1
Increase/(decrease) in cash and cash equivalents	1.5	367.9	-26.7	390.0	73.4
Cash and cash equivalents, beginning balance	76.8	53.7	105.0	31.6	31.6
Cash and cash equivalents, ending balance	78.3	421.6	78.3	421.6	105.0

 
Cash flow statement per quarter


Million USD	Q2 07	Q3 07	Q4 07	Q1 08	Q2 08
Cash flow from operating activities					
Operating profit	53.5	48.1	51.8	62.0	158.0
					
Adjustments:					
Reversal of profit from sale of vessels	0.0	0.0	0.0	0.0	-52.0
Reversal of depreciation and impairment losses	15.1	26.6	32.6	30.7	31.1
Reversal of share of results of jointly controlled entities	1.7	4.1	0.4	1.8	-7.4
Reversal of other non-cash movements	-3.5	0.5	-0.6	-4.6	-2.4
Dividends received	1.1	0.0	0.0	0.2	1.2
Dividends received from joint controlled entities	2.0	0.1	0.5	1.3	0.2
Interest received and exchange rate gains	13.8	9.1	-3.5	9.7	2.8
Interest paid	-14.1	-27.4	-19.9	-23.9	-18.4
Income taxes paid	0.1	-0.2	-10.1	-1.3	-0.3
Change in inventories, accounts receivables and
payables	2.9	-54.6	10.5	-12.2	-23.6 
Net cash inflow/(outflow) from operating activities	72.6	6.3	61.7	63.7	89.2
Cash flow from investing activities					
Investment in tangible fixed assets	-115.2	-16.5	-91.7	-102.9	-78.2
Investment in equity interests and securities	0.3	0.2	0.0	-118.4	-15.1
Loans to jointly controlled entities	-909.1	906.0	-11.9	0.0	0.0
Acquisition of enterprises and activities	0.0	-808.6	-1.6	0.0	0.0
Sale of equity interests and securities	704.2	32.7	0.0	0.0	17.4
Sale of non-current assets	0.0	0.0	0.1	0.1	68.5
Net cash inflow/(outflow) from investing
activities	-319.8	113.8	-105.1	-221.2	-7.4 
Cash flow from financing activities					
Borrowing, mortgage debt and other financial
liabilities	795.4	873.8	113.2	137.6	869.8 
Repayment/redemption, mortgage debt	-107.6	-977.7	-51.3	-8.3	-884.8
Dividends paid	-72.7	-351.3	0.0	0.0	-65.3
Purchase/disposals of treasury shares	0.0	0.0	0.0	0.0	0.0
Cash inflow/(outflow) from financing activities	615.1	-455.2	61.9	129.3	-80.3
Increase/(decrease) in cash and cash equivalents	367.9	-335.1	18.5	-28.2	1.5
Cash and cash equivalents, beginning balance	53.7	421.6	86.5	105.0	76.8
Cash and cash equivalents, ending balance	421.6	86.5	105.0	76.8	78.3



Final OMI opening balance

USD million	 	Fair value
 		 
Intangible assets		13.4
Tangible fixed assets		963.8
Other financial assets		46.2
Freight receivables, etc.		30.0
Other receivables		3.0
Prepayments		9.7
Cash and cash equivalents		41.9
Mortgage debt and bank loans		-276.1
Acquired liabilities related to options on vessels		-31.6
Other financial liabilities		-2.1
Trade payables		-13.2
Acquired timecharter contracts		-42.3
Other liabilities		-45.3
Deferred income		-4.5
Net assets acquired		692.9
Goodwill		89.2
Cash consideration paid		782.1

The pre-acquisition balance sheet as per August 1, 2007 of the OMI Corporation
acquisition is now final. Changes from 31 December 2007 relate to the valuation
of certain derivative financial instruments and have resulted in a net increase
in goodwill of USD 1.5 million.

News Source: NASDAQ OMX

20.08.2008  Financial News transmitted by DGAP
----------------------------------------------------------------------
 
Language:     English
Issuer:       A/S Dampskibsselskabet TORM
              
               
              Denmark
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         DK0010281468
WKN:          
 
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