A/S Dampskibsselskabet TORM
Interim Report Third Quarter 2008
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. ---------------------------------------------------------------------- TORM's leading presence in the product tanker market has ensured an exceptional result for the first nine months, and we maintain our profit forecast for 2008, states Mikael Skov, CEO. Profit before tax for the first three quarters of 2008 was USD 290 million. 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). TORM has unutilised credit facilities and cash in excess of USD 700 million. Due to the sharp fall in oil prices from the peak in July 2008 TORM has in the third quarter unrealized mark-to-market adjustments on FFA and bunker hedge of USD 6 million and on financial derivatives of USD 11 million. Equity amounted to USD 1,269 million (DKK 6,622 million) as at 30 September 2008, equivalent to USD 18.3 per share (DKK 95.6 per share), excluding treasury shares. The market value of TORM's fleet, including the order book, exceeded book value by USD 1,589 million at 30 September 2008, equalling USD 23.0 per share (DKK 119.8 per share), excluding treasury shares. The market for transport of crude oil was firm during the first part of the third quarter, while earnings in the latter part were better for transport of refined oil products. Product tanker earnings have dropped in the fourth quarter, although they remain at seasonably high levels. As at 31 October 2008, TORM had covered 63% of the remaining earning days for 2008 in the Tanker Division at USD 25,299 per day. Bulk freight rates dropped towards the end of the third and into the fourth quarter, primarily due to lower demand for coal and iron ore and concern of the global economic development. As at 31 October 2008, TORM had covered 78% of the remaining earning days for 2008 in the Bulk Division at USD 45,550 per day. At the end of the third quarter, the Company's net interest bearing debt totalled USD 1,575 million. More than half of the debt falls due in or after 2013. As at 31 October 2008, TORM had covered approximately 32% of the total fleet's earning days in 2009. The historically good result in combination with the development of the share price has led TORM to propose an interim dividend of DKK 4.50 per share. The company will call in for an extraordinary general meeting. Although the product tanker market, TORM's principal business area, is currently doing well, we have taken a number of risk precautions both internally and vis-à-vis customers, suppliers and financial counterparties in order to limit the effects if the financial crisis continues. Our strong balance sheet and financial resources provide a solid foundation for the Company to manoeuvre in more difficult market conditions in 2009, announces CEO Mikael Skov. Teleconference A teleconference and webcast (www.torm.com) will take place today, 21 November 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 Mikael Skov, CEO Roland M. Andersen, CFO News Source: NASDAQ OMX 21.11.2008 Financial News transmitted by DGAP ---------------------------------------------------------------------- Language: English Issuer: A/S Dampskibsselskabet TORM Denmark Phone: Fax: E-mail: Internet: ISIN: DK0010281468 WKN: End of News DGAP News-Service ---------------------------------------------------------------------------
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