D/S Norden
Annual report 2014 and outlook for 2015

DGAP-News: D/S Norden

2015-03-04 / 08:35

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Attached please find the full report as PDF file.

Dampskibsselskabet NORDEN A/S

______________________________________________________________________________

                                                              Announcement no. 2

                                                                    4 March 2015

Annual report 2014 and outlook for 2015

Today, the Board of Directors approved the annual report for 2014. The full
report is attached as PDF file and contains the following highlights: 

  -- Underlying operations (EBITDA): USD -31 million.
  -- EBITDA: USD -261 million (2013: USD 24 million) in line with the most
     recently announced expectations and impacted by provision for onerous
     contracts of USD 230 million, which will be reversed in coming years.
  -- Results for the year: USD -416 million (USD -48 million) of which value
     adjustment USD -61 million on hedging instruments.
  -- Strategy adjusted to more challenging markets than expected:
     -- Dry Cargo fleet reduced by 21%
     -- Investment programme on hold
     -- 5 vessels sold - proceeds of USD 112 million
     -- Coverage in Dry Cargo increased to 55% for 2015
     -- Working capital improved by USD 34 million
     -- Reorganised Dry Cargo Department
     -- Savings programme launched, target: USD 20 million annually 
     -- USD 221 million in new credit facilities secured
     -- Achieved hire savings of USD 10.5 million
  -- Dry Cargo: Market badly hit by Chinese slowdown. Earnings 2% above 1-year
     T/C rates, 35% above spot rates.
  -- Tankers: Strong market at the end of the year continued into 2015. Earnings
     6% above 1-year T/C rates.
  -- Guidance at EBIT level due to larger fleet of owned vessels and resulting
     depreciation.
  -- Outlook for 2015: EBIT of USD -40 million to USD 40 million (USD -335
     million).
  -- The Board of Directors proposes that no dividend be paid.

Interim CEO Klaus Nyborg in comment: 'Contrary to expectations, the dry cargo
market in 2014 went from bad to worse. NORDEN launched a number of initiatives
and cleared up in old contracts, which affected results for the year
significantly. The Tanker Department generated the best operating profit in 6
years. In spite of a continued very difficult dry cargo market, the
initiatives, along with a good start in Tankers, will ensure a significant
improvement in NORDEN's results for 2015.' 

A telephone conference will be held today at 3:30 p.m. (CET) where interim CEO
Klaus Nyborg, CFO Michael Tønnes Jørgensen and Executive Vice President Martin
Badsted will comment on the report. By 3:25 p.m. (CET) at the latest, Danish
participants should dial in on +45 3272 8018 while participants from abroad
should dial in on +44 (0) 145 255 5131 or +1 866 682 8490. The telephone
conference can be followed live at www.ds-norden.com where the accompanying
presentation is also available. 

Further information:

Michael Tønnes Jørgensen, CFO, tel.: +45 3315 0451

Martin Badsted, Executive Vice President, tel.: +45 3315 0451

_______________________________________________________________________________

                          Dampskibsselskabet NORDEN A/S

                                52, Strandvejen

                                DK-2900 HELLERUP

                                CVR no. 67758919

                                www.ds-norden.com
News Source: NASDAQ OMX



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Language:    English       
Company:     D/S Norden    
 
 
             Denmark       
ISIN:        DK0060083210  
 
 
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