FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of November 2003
A/S STEAMSHIP COMPANY TORM
(Translation of registrant's name into English)
Marina Park
Sundkrogsgade 10
DK-2100 Copenhagen 0
Denmark
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F |X| Form 40-F |_|
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes |_| No |X|
INFORMATION CONTAINED IN THIS FORM 6-K REPORT
Set forth herein as Exhibit 1 is a copy of a Statement No. 13 - 2003
issued by A/S STEAMSHIP COMPANY TORM to The Copenhagen Stock Exchange on
November 21, 2003.
Exhibit 1
--------- --------------------------
ANNOUNCEMENT NO. 13 - 2003 A/S Steamship Company TORM
TO THE COPENHAGEN STOCK EXCHANGE Marina Park
Sundkrogsgade 10
DK-2100 Copenhagen 0
Denmark
21 November 2003
TORM - Interim report for the first nine months of 2003 - maintains expectations
for 2003
o Net profit for the first nine months of 2003 was DKK 468 mill. including
unrealized gain on shares.
o Net profit for the third quarter 2003 itself was DKK 232 mill. including
unrealized gain on shares.
o The results are very satisfactory and exceed significantly the original
forecast at the beginning of the year.
o As expected, freight rates in the product tanker segment fell towards the
end of the third quarter 2003. Freight rates in the bulk segment increased
considerably, but the effect has been countered by hedging contracts, which
have been closed in the fourth quarter of 2003.
o Profit before depreciation was DKK 413 mill. for the first nine months of
2003.
o Profit before financial items was DKK 284 mill. for the first nine months
of 2003.
o As stated in announcement no. 11 to the Copenhagen Stock Exchange, dated 27
October 2003, expectations for the full year net profit are maintained at
DKK 320 - 345 mill., before any unrealized gain on the investment in
Dampskibsselskabet "NORDEN" A/S. Including the unrealized gain on NORDEN
the net profit is expected to be DKK 685-710 mill. subject to the end year
share price of NORDEN.
o In October 2003, new EU regulations came into force barring single-hulled
tankers from carrying heavy fuel oil cargoes to and from Europe and banning
single-hulled vessels more than 23 years old from European waters. The
International Maritime Organisation (IMO), the United Nation's agency
responsible for shipping, will meet in December 2003 to discuss the
adoption of similar measures to speed up an phase-out of older tankers.
A conference call to discuss the results of the first nine months of 2003 is
scheduled for Monday 24 November 2003 at 17.00 CET (Copenhagen time). The
conference call will also be accessible via the Internet (www.torm.dk). To
participate in the call, please call 10 minutes before the start on tel.: +45 32
71 46 11 (from Europe) or + 1 334 323 6203 (from the US).
A/S Dampskibsselskabet TORM
Contact persons: Klaus Kjaerulff, CEO (tel.: +45 39 17 92 00)
Klaus Nyborg, CFO (tel.: +45 39 17 92 00)
KEY FIGURES FOR THE GROUP
--------------------------------------------------------------------------------
DKK mill. Change Full
Q1-Q3 Q1-Q3 Q1-Q3 year
2003 2002* 2002-3 2002*
--------------------------------------------------------------------------------
INCOME STATEMENT
Net revenue 1,458 1,132 29% 1,539
Time Charter Equivalent earnings 966 715 35% 983
Gross profit 479 205 134% 303
Profit before depreciation 413 236 75% 368
Profit before financial items 284 120 137% 210
Profit/(loss) before tax 468 145 223% 197
Net profit 468 505 -7% 557
--------------------------------------------------------------------------------
BALANCE SHEET
Total assets 4,405 3,810 16% 4,013
Shareholders' equity 1,956 1,614 21% 1,624
Debt 2,449 2,196 12% 2,389
Invested capital 3,083 2,834 9% 2,846
Net interest bearing debt 1,616 1,520 6% 1,511
--------------------------------------------------------------------------------
CASH FLOW
From operating activities 387
From investing activities -676
thereof investment in tangible fixed assets -790
From financing activities 298
---
Net cash flow 9
--------------------------------------------------------------------------------
KEY FIGURES %-point
-------
Gross margin 32.9% 18.1% 14.7% 19.7%
Profit before depreciation/Net revenue 28.3% 20.8% 7.5% 23.9%
Profit before financial items/Net revenue 19.5% 10.6% 8.9% 13.6%
RoE (p.a.) 34.9%
RoIC (p.a.) 12.8%
Equity ratio 44.4% 42.4% 2.0% 40.5%
-------
Share price, end of period (DKK) 129.6 49.6 161% 56.4
Number of shares, end of period (mill.) 18.2 18.2 0% 18.2
Earnings per share (DKK) 25.7 27.7 -7% 30.6
Exchange rate USD/DKK, end of period 6.37 7.53 -15% 7.08
Exchange rate USD/DKK, average 6.69 8.04 -17% 7.89
--------------------------------------------------------------------------------
----------
* Restated, continuing operations, please see section "Accounting
Principles".
RESULT FOR THE FIRST NINE MONTHS OF 2003
Net profit for the first nine months of 2003 was DKK 468 mill. including an
unrealized gain on the investment in NORDEN of DKK 197 mill.
Gross profit for the first nine months of 2003 was DKK 479 mill. (against DKK
205 mill. for first nine months of 2002). The increase was primarily
attributable to better freight rates in both the tanker and bulk segments, as
well as an increase of about 30% in available earning days compared to the first
nine months of 2002.
Profit before depreciation was DKK 413 mill. (DKK 236 mill.).
Depreciation was DKK 129 mill. (DKK 116 mill.). The increase in depreciation was
the result of the Company's fleet expansion through the delivery of seven
product tanker newbuildings and one second hand bulk vessel during 2002-3.
Net financial items were an income of DKK 185 mill. (DKK 25 mill.) This includes
net gains on securities - primarily the NORDEN shares - of DKK 197 mill., net
interest charges of DKK 32 mill. and other financial items of plus DKK 20 mill.
Profit before tax was DKK 468 mill. (DKK 145 mill.).
Net profit was DKK 468 mill. (DKK 505 mill., including a reversal of a provision
for deferred tax of DKK 360 mill. in connection with the introduction of the
tonnage tax system in Denmark).
The Tanker division's net profit was DKK 242 mill., and the Bulk division
contributed DKK 27 mill. Other activities (Unallocated financial items and
Offshore and Liner activities) showed a net profit of DKK 199 mill.
Cash flow from operating activities was positive by DKK 387 mill. in the first
nine months of 2003, mainly consisting of cash earnings.
Cash flow from investment activities was negative by DKK 676 mill. and consists
of investment in vessels of DKK 790 mill. - particularly in connection with the
newbuilding program - less payments received of DKK 114 mill., primarily related
to the sale of TORM GYDA.
Cash flow from financing activities was DKK 298 mill. in the first nine months
of 2003. This amount consists principally of loan draw-downs of DKK 525 mill. in
connection with the newbuildings, less repayments of mortgage debt of DKK 192
mill. including debt repayment related to the sale of TORM GYDA, along with the
payment of dividends on the Company's shares amounting to DKK 35 mill.
Hence, total liquidity generated during the period was positive in the amount of
DKK 9 mill. The Company's cash and bond holdings (cash equivalents) increased to
DKK 531 mill. as against DKK 522 mill. at the end of 2002.
Total assets increased during the period from DKK 4,013 mill. to DKK 4,405 mill.
mainly as a result of fixed assets increasing during the period from DKK 3,187
mill. to DKK 3,620 mill. This was positively impacted mainly by the effect of
the delivery of three newbuildings and one second hand vessel and the increase
in the value of the NORDEN stake, but offset by the sale of TORM GYDA,
depreciation during the period and the fall of the USD/DKK exchange rate. The
NORDEN holding is valued at DKK 640 per share, the closing price on the
Copenhagen Stock Exchange on 30 September 2003.
The Company's net interest bearing debt increased during the first nine months
of 2003 from DKK 1,511 mill. to DKK 1,616 mill. The increase is mainly
attributable to net loan draw-downs in connection with the delivery of the
newbuildings, offset by the sale of TORM GYDA and positive operating cash flow
achieved during the period.
During the first nine months of 2003 shareholders' equity increased from DKK
1,624 mill. to DKK 1,956 mill., mainly as a result of earnings less payment of
dividends. Shareholders' equity as a proportion of total assets increased from
40.5% at 31 December 2002 to 44.4% at 30 September 2003.
TORM owned 881,368 own shares at 30 September 2003, equivalent to 4.8% of the
Company's share capital. The number of own shares was unchanged from 31 December
2002.
RESULT FOR THIRD QUARTER 2003
Third quarter 2003 showed a gross profit of DKK 179 mill. and profit before
depreciation of DKK 154 mill., of which the tanker division contributed DKK 121
mill. Net profit for the period was DKK 232 mill. including an unrealized gain
on the NORDEN shares of DKK 142 mill.
Segment information (DKK mill.)
------------------------------------------------------------------------------------------------------------------------
Q1-Q3 2003 Q3 2003
Tanker Bulk Unallo- Tanker Bulk Unallo-
division division cated(1) Total division division cated(1) Total
------------------------------------------------------------------------------------------------------------------------
Net revenue 859 582 17 1,458 281 232 6 519
Port expenses and bunker -243 -255 6 -492 -80 -91 6 -165
--------------------------------------------------------------------------------------
Time charter equivalent earnings 616 327 23 966 201 141 12 354
Charter hire -65 -234 -9 -308 -21 -92 -4 -117
Operating expenses -141 -30 -8 -179 -45 -11 -2 -58
--------------------------------------------------------------------------------------
Gross Profit 410 63 6 479 135 38 6 179
Administrative expenses -73 -26 -6 -105 -26 -10 -2 -38
Other Operating income 38 1 0 39 12 1 0 13
--------------------------------------------------------------------------------------
Profit before depreciation 375 38 0 413 121 29 4 154
Depreciation -113 -15 -1 -129 -38 -5 0 -43
--------------------------------------------------------------------------------------
Profit before financial items 262 23 -1 284 83 24 4 111
Net gain/(loss) from other
investments and securities 0 0 197 197 0 0 141 141
Other financial items -20 4 3 -13 -18 -3 1 -20
--------------------------------------------------------------------------------------
Profit/(Loss) before tax 242 27 199 468 65 21 146 232
Tax 0 0 0 0 0 0 0 0
--------------------------------------------------------------------------------------
Net profit for the period 242 27 199 468 65 21 146 232
------------------------------------------------------------------------------------------------------------------------
(1) Contains unallocated financial items and the Company's discontinued
operations, i.e. offshore and liner activities.
TANKER DIVISION
In the first nine months of 2003, net profit was DKK 242 mill. in the Tanker
division.
Freight rates in the product tanker segments were at a high level in the period,
especially in the first two quarters of the year, whereas - as expected - a
weakening was seen towards the end of the third quarter.
TORM benefited from its spot market strategy during the first nine months of
2003.
During the first nine months of 2003, the Company's focus in the product tanker
segment - to operate the vessels in pools in cooperation with other owners with
quality tonnage - was further emphasized through the delivery of a number of
newbuildings and the contracting of additional tonnage for delivery to the three
pools.
On 21 October 2003 new EU regulations came into force barring single-hulled
tankers from carrying heavy fuel oil cargoes to and from Europe and banning
single-hulled vessels, including product tankers, more than 23 years old from
European waters. In December 2003, the International Maritime Organisation
(IMO), the United Nation's agency responsible for shipping, will meet to discuss
the adoption of similar measures to speed up the phase-out of older tankers.
TORM sees the introduction of these additional environmental safety requirements
as a positive development, but emphasizes the need for a global uniform
standard.
The banning of vessels older than 23 years from Europe means that charterers of
these vessels will lose trading flexibility, leading to less cargoes for these
vessels, and eventually move forward the scrapping date. TORM believes that
these regulations will further accelerate the trend towards a two-tier market,
where double-hulled tonnage approved by oil majors will have preference.
New security regulations related to terror against ships imposed by IMO and
individual countries including USA are demanding and costly for shipowners'
vessels and organizations. However, TORM will comply with these regulations.
Rates achieved in the third quarter 2003 in the Company's three pools, of which
the LR2 pool is co-managed with A.P. M0ller - Maersk, were substantially in
excess of those of the corresponding period last year. Specifically, rates were
19%, 25% and 22% higher in the LR2, LR1 and MR pools, respectively, in the third
quarter 2003 compared to the third quarter 2002.
As expected, during the third quarter 2003 freight rates decreased from earlier
in 2003, as several factors in this period showed a weakening effect, including
the now ended strike in Venezuela and uncertainties in connection with the war
in Iraq. However, the emphasis on quality tonnage following the sinking of the
"Prestige" in November 2002 has remained in focus throughout the third quarter
2003 as well as continued relatively low inventories of refined oil products,
leading to better rates compared to third quarter 2002.
Depending on the freight rate environment and outlook, part of the risk exposure
related to freight rate levels in the Company's Tanker division is countered
through the use of various hedging instruments, including Forward Freight
Agreements (FFA). As of 30 September 2003, net revenue contains adjustments to
FFAs to the market value as of 30 September 2003. This impacted net revenue and
profits negatively by DKK 3 mill. in the first nine months of 2003 as freight
rates at the end of the first nine months of 2003 were slightly higher than the
average rates of the FFAs.
Earnings data for the Tanker division
2002 2003 Change
------------------------------
Q3 Q1 Q2 Q3 Q3-Q3
LR2/Aframax vessels
-----------------------------------------------------------------------------------
Available earning days 268 270 272 281 5%
Average number of vessels 2.9 3.0 3.0 3.1 5%
TCE per earning days *) 22,656 31,237 32,804 27,008 19%
OPEX per earning days **) -6,454 -5,651 -5,816 -5,660 -12%
Operating C/F per earning days ***) 7,104 16,931 18,479 12,997 83%
-----------------------------------------------------------------------------------
LR1/Panamax vessels
-----------------------------------------------------------------------------------
Available earning days 251 210 194 220 -12%
Average number of vessels 2.8 2.3 2.1 2.4 -15%
TCE per earning days *) 15,731 23,630 26,507 19,670 25%
OPEX per earning days **) -7,677 -5,691 -7,070 -4,966 -35%
Operating C/F per earning days ***) 6,273 17,939 19,436 14,704 134%
-----------------------------------------------------------------------------------
MR vessels
-----------------------------------------------------------------------------------
Available earning days 690 1,004 1,000 1,001 45%
Average number of vessels 7.6 11.2 11.0 10.9 43%
TCE per earning days *) 12,754 18,355 19,369 15,523 22%
OPEX per earning days **) -5,023 -5,701 -4,575 -5,030 0%
Operating C/F per earning days ***) 7,731 12,653 14,794 10,493 36%
-----------------------------------------------------------------------------------
*) TCE = Time Charter Equivalent Earnings = Gross freight income less bunker,
commissions and port expenses (USD/day)
**) Operating expenses for own vessels (USD/day).
***) TCE earnings less operating expenses and charter hire (USD/day).
As a result of the addition of four MR-newbuildings since 30 September 2002,
TORM had more available earning days in the MR segment during the third quarter
of 2003 compared with the third quarter of 2002. The number of operating days in
the LR1 segment was lower due to the re-delivery of chartered-in tonnage.
Operating costs in the LR2 and LR1 segments were 12% and 35% lower respectively
in the third quarter of 2003 compared to the third quarter of 2002. However,
these numbers are likely to fluctuate somewhat between the quarters due to
certain purchases of larger items.
BULK DIVISION
The Bulk division achieved a profit of DKK 27 mill. for the first nine months of
2003.
This was a reflection of freight rates, which increased substantially,
especially in the third quarter 2003. Freight rates achieved by the Panamax and
Handysize vessels were 85% and 47% higher in the third quarter 2003 than in the
third quarter 2002, respectively. The higher rates were a result of limited
growth in the world dry bulk fleet coupled with very strong demand from
especially Chinese import of iron ore and the shut down of nuclear power
stations in Japan, resulting in an increased import of coal.
In connection with taking on a significant number of time chartered-in vessels
in late 2002, TORM hedged a significant part of the exposure to freight rate
fluctuations for 2003 through the use of various instruments, including Forward
Freight Agreements and Contracts of Affreightment (FFAs and COAs). With the very
strong increases in bulk freight rates especially in the third quarter of 2003,
the hedge has impacted the result for the first nine months of 2003 for the
Panamax segment negatively.
Net revenue for the bulk division contains adjustments to FFAs to the market
value as of 30 September 2003. This impacted net revenue and profits negatively
by DKK 27 mill. in the first nine months of 2003.
In the period after 30 September 2003, TORM has closed the FFA hedges at a cost
of app. DKK 3 mill. and has started chartering out a part of the Company's
Panamax bulk fleet for 2004 to increase coverage at historically high levels.
During the second half of 2002, TORM chartered in a number of Panamax bulk
vessels, whereby the third quarter of 2003 compared to the third quarter of 2002
saw a 59% increase in the number of operating days in the Panamax segment while
the number of operating days in the Handysize segment fell marginally due to the
redelivery of chartered-in tonnage.
Earnings data for the Bulk division
USD/Day 2002 2003 Change
---------------------------
Q3 Q1 Q2 Q3 Q3-Q3
Panamax vessels
--------------------------------------------------------------------------------
Available earning days 864 1,161 1,286 1,375 59%
Average number of vessels 9.4 12.9 14.1 14.9 59%
TCE per earning days *) 7,008 9,166 11,905 12,965 85%
OPEX per earning days **) -4,970 -5,208 -4,592 -5,496 11%
Operating C/F per earning days ***) -869 606 3,331 4,171 -580%
--------------------------------------------------------------------------------
Handysize vessels
--------------------------------------------------------------------------------
Available earning days 291 356 351 276 -5%
Average number of vessels 3.2 4.0 3.9 3.0 -5%
TCE per earning days *) 5,713 7,526 7,781 8,419 47%
OPEX per earning days **) -2,654 -3,442 -3,180 -2,811 6%
Operating C/F per earning days ***) 933 2,664 3,392 4,099 339%
--------------------------------------------------------------------------------
*) TCE = Time Charter Equivalent Earnings = Gross freight income less bunker,
commissions and port expenses (USD/day).
**) Operating expenses for own vessels (USD/day).
***) TCE earnings less operating expenses and charter hire (USD/day).
UNALLOCATED ITEMS
Unallocated items contain an amount of DKK 200 mill. representing unallocated
financial items, including a DKK 197 mill. unrealized gain on the NORDEN shares.
Unallocated items also include one chartered-in offshore supply vessel, due to
be redelivered in December 2003, and various smaller items related to
regulations of the Liner activity, which was sold in 2002. The closing of these
activities is almost completed and proceeds according to plan.
FLEET DEVELOPMENT
TORM's strategy is to own and operate in cooperation with its partners a modern
product tanker fleet market. As a part of the strategy of renewing and expanding
the fleet, TORM took delivery of two MR product tankers (TORM THYRA and TORM
FREYA) in January 2003, one LR2 product tanker (TORM VALBORG) in September 2003
and one LR2 product tanker (TORM INGEBORG) in November 2003 and sold a
1992-built product tanker (TORM GYDA) in January 2003.
Furthermore, in September 2003, a second hand Panamax bulk carrier (TORM HERDIS
- formerly "Santa Teresa") was delivered to TORM.
Following the delivery of TORM INGEBORG less than two weeks ago, the Company's
order book contains six newbuildings with a total value of more than USD 200
mill., namely two LR1 product tankers delivering in 2004 and four LR2 vessels
due for delivery in 2006 and 2007.
TORM has decided to exercise an option to purchase the chartered-in Panamax
bulkcarriers TORM MARTA and TORM MARLENE at prices significantly below the
current market. These vessels will be delivered around year-end 2003 and early
2004.
PRODUCT TANKER POOLS
The 12 partners in TORM's three product tanker pools had a total of 58 ships
participating in the pools as at 30 September 2003. During the first nine months
of 2003, the pools' fleet had a net growth of four vessels. During the period,
Pacific Carriers Limited resigned from the MR Pool and withdrew three vessels
(of which one remained in the MR pool until October 2003). Based on contracted
vessels being delivered, the three pools will contain 61 vessels by the end of
2003.
There are ongoing discussions with potential partners seeking to enter the
pools.
EXPECTATIONS FOR THE REMAINDER OF 2003
As expected and due to seasonality, the freight rates in the product tanker
segment have fallen in the third quarter of the year but have increased slightly
in the beginning of fourth quarter.
Freight rates in the bulk segment have increased substantially, and as the
hedging in terms of FFAs has been closed, the Company benefits from the surge in
freight rates in the remainder of 2003. TORM has chartered out a part of the
Company's Panamax bulk fleet for 2004 to increase coverage at historically high
levels.
As stated in announcement no. 11 to the Copenhagen Stock Exchange, dated 27
October 2003, expectations for the full year net profit are maintained at DKK
320 - 345 mill. before any unrealized gain on the investment in
Dampskibsselskabet "NORDEN" A/S.
Including the unrealized gain on NORDEN, the net profit is expected to be DKK
685-710 mill. subject to the year end share price of NORDEN.
SAFE HARBOUR STATEMENT - FORWARD LOOKING STATEMENTS
--------------------------------------------------------------------------------
This release contains forward-looking statements as the term is defined in the
US Private Securities Litigation Reform Act of 1995. Forward-looking statements
provide current expectations or forecast of events. Such forward-looking
statements are subject to risks, uncertainties and inaccurate assumptions, which
may cause results to differ materially from expectations.
Factors that may affect future results include statements regarding: Spot and
TCE rates in the near and long term, operating days, tanker and bulker supply
and demand, supply and demand for oil and refined products, expectations about
the Company's future capital requirements and capital expenditures, the
Company's growth strategy and how it is implemented, the number of partners and
the number of vessels the partners have in the pools, environmental changes in
regulation, cost savings and other benefits.
Risks and uncertainties are further described in reports filed by TORM with the
US Securities and Exchange Commission (SEC), including the Company's form 20-F.
Please also refer to the section "Managing Risk and Exposure" in the 2002 annual
report.
TORM is under no duty to update any of the forward-looking statements or to
conform such statements to actual results, unless required by law.
--------------------------------------------------------------------------------
ACCOUNTING POLICIES
The report for the first nine months of 2003 has been prepared using the same
accounting policies as in the interim reports for the first quarter and first
half of 2003, which were changed, however, from the 2002 annual report.
Accounting policies are described in more detail in the 2002 annual report and
in the first quarter 2003 report, where the change in accounting policies in the
first quarter 2003 is described as well.
Almost 100% of TORM's revenues, more than 90% of the costs and the large
majority of the Company's assets and liabilities are USD denominated. Hence, the
main impact of movements of the USD/DKK exchange rate on the results for the
first nine months has been a matter of translating USD-based net earnings and
balance sheet items to DKK.
The comparative figures are restated to reflect current accounting policies and
are for continuing operations. Full year 2002 and Q1-Q3 2002 comparative figures
reflect continuing operations for Net revenue, Port costs and bunker, Time
Charter Equivalent Earnings, Charter hire, Technical operating costs and Gross
profit, but include discontinued operations in other items.
The report for the first nine months of 2003 is unaudited, in line with standard
practice.
CONFERENCE CALL AND WEBCAST
TORM invites financial analysts and investors to a conference call Monday, 24
August 2003 at 17.00 CET (Copenhagen time). The conference call will be
conducted in English and hosted by Klaus Kjaerulff, CEO and Klaus Nyborg, CFO.
To participate in the call, please call 10 minutes before the start of the
conference call on tel.: +45 32 71 46 11 (from Europe) or +1 334 323 6203 (from
the US).
It will also be possible to access the conference call via the Internet on
www.torm.dk, where presentation slides for the conference call can also be
found.
Income statement
1 January - 30 September 2003
--------------------------------------------------------------------------------
GROUP
------------------------------------
Q1-Q3 2003 Q1-Q3 2002* 2002*
DKK mill
============================================------------------------------------
Net revenue 1,458 1,132 1,539
Port costs and bunker -492 -417 -556
------------------------------------
Time Charter Equivalent Earnings 966 715 983
Charter hire -308 -348 -463
Technical operating costs -179 -162 -217
------------------------------------
Gross profit 479 205 303
Profit from discontinued activities 0 69 95
Profit on sale of vessels and interests 0 9 17
Administrative expenses -105 -80 -102
Other operating income 39 33 55
------------------------------------
Profit before depreciation 413 236 368
Depreciation -129 -116 -158
------------------------------------
Profit before financial items 284 120 210
Net gain/(loss) from other
investments and securities 197 23 15
Other financial items -13 2 -28
------------------------------------
Profit before tax 468 145 197
Tax on profit on ordinary activities 0 360 360
------------------------------------
Net profit 468 505 557
====================================
--------------------------------------------------------------------------------
* Restated, continuing operations, please see section "Accounting
Principles".
Balance sheet
--------------------------------------------------------------------------------
GROUP
-------------------------------------
30 September 2003 31 December 2002*
DKK mill.
--------------------------------------------------------------------------------
ASSETS
FIXED ASSETS
Tangible fixed assets
Leasehold improvements 4 5
Land and buildings 2 2
Vessels and capitalized dry-docking 2,822 2,543
Prepayment on vessels under construction 286 330
Other plant and operating equipment 17 17
-------------------------------------
3,131 2,897
-------------------------------------
Financial fixed assets
Other investments 489 290
-------------------------------------
489 290
-------------------------------------
TOTAL FIXED ASSETS 3,620 3,187
-------------------------------------
CURRENT ASSETS
Inventories
Inventories of bunkers 29 33
-------------------------------------
Accounts receivables
Freight receivables, etc 155 225
Other receivables 48 24
Prepayments 22 22
-------------------------------------
225 271
-------------------------------------
Securities
Bonds 329 354
-------------------------------------
Cash at bank and in hand 202 168
-------------------------------------
TOTAL CURRENT ASSETS 785 826
-------------------------------------
TOTAL ASSETS 4,405 4,013
=====================================
--------------------------------------------------------------------------------
* Restated, continuing operations, please see section "Accounting
Principles".
Balance sheet
--------------------------------------------------------------------------------
GROUP
--------------------------------------
30 September 2003 31 December 2002*
DKK mill.
--------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY
Common shares 182 182
Own shares -52 -52
Retained earnings 1,826 1,494
Proposed dividend 0 0
--------------------------------------
TOTAL SHAREHOLDERS' EQUITY 1,956 1,624
--------------------------------------
LIABILITIES
Long-term liabilities
Mortgage debt and bank loans 1,868 1,735
--------------------------------------
Current liabilities
Next year's instalments on mortgage
debt and bank loans 279 298
Trade accounts payable 96 164
Other liabilities 144 111
Accruals 62 81
--------------------------------------
564 654
--------------------------------------
TOTAL LIABILITIES 2,449 2,389
--------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 4,405 4,013
======================================
--------------------------------------------------------------------------------
* Restated, continuing operations, please see section "Accounting
Principles".
Cash flow statement
--------------------------------------------------------------------------------
GROUP
----------
Q1-Q3 2003
DKK mill.
--------------------------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES
Profit before financial items 284
Interest received 22
Interest paid -54
----------
252
Adjustments:
Reversal of depreciation 129
Reversal of other non-cash movements 11
Change in inventories, accounts receivables and payables -5
----------
NET CASH INFLOW FROM OPERATING ACTIVITIES 387
----------
CASH FLOW FROM INVESTING ACTIVITIES
Investment in tangible fixed assets -790
Investment in equity interests and securities 0
Sale of fixed assets 114
including profit on sale of vessels 0
----------
NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES -676
----------
CASH FLOW FROM FINANCING ACTIVITIES
Borrowing, mortgage debt 525
Repayment/redemption, mortgage debt -163
Repayment/redemption, lease liabilities -29
Dividends paid -35
----------
CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES 298
----------
INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 9
CASH AND CASH EQUIVALENTS,
INCLUDING BONDS, AT 1 JANUARY 522
----------
CASH AND CASH EQUIVALENTS,
INCLUDING BONDS, AT 30 SEPTEMBER 531
--------------------------------------------------------------------------------
Shareholders' equity
--------------------------------------------------------------------------------
GROUP
----------
DKK mill. Q1-Q3 2003
--------------------------------------------------------------------------------
Balance at 1 January 2003 1,719
Transitional adjustment* -95
----------
Adjusted balance at 1 January 2003 1,624
Exchange rate adjustment of shareholders'
equity in subsidiaries and associated
companies -53
Exchange rate adjustment of loans to
subsidiaries and associated entities -53
Adjustment of value of derivatives -1
Exchange rate adjustment of loans 5
Dividends paid -36
Dividends on own shares 2
Net profit from profit and loss statement 468
----------
Balance at 30 september 2003 1,956
--------------------------------------------------------------------------------
* Transitional adjustment arising from the change in accounting principles to
using USD as functional currency. Please see section "Accounting Policies".
Income statement
1 January - 30 September 2003
--------------------------------------------------------------------------------
GROUP
-------------------------------
Q1 2003 Q2 2003 Q3 2003
DKK mill.
--------------------------------------------------------------------------------
Net revenue 502 437 519
Port costs and bunker -185 -142 -165
-------------------------------
Time Charter Equivalent Earnings 317 295 354
Charter hire -95 -96 -117
Technical running costs -69 -52 -58
-------------------------------
Gross profit 153 147 179
Administrative expenses -27 -40 -38
Other operating income 13 13 13
-------------------------------
Profit before depreciation 139 120 154
Depreciation -44 -42 -43
-------------------------------
Profit before financial items 95 78 111
Net gain/(loss) from other
investments and securities 10 46 141
Other financial items -4 11 -20
-------------------------------
Profit before tax 101 135 232
Tax on profit on ordinary activities 0 0 0
-------------------------------
Net profit for the period 101 135 232
===============================
--------------------------------------------------------------------------------
Quarter-by-quarter cash flow statement
--------------------------------------------------------------------------------
GROUP
-------------------------
Q1 2003 Q2 2003 Q3 2003
DKK mill.
--------------------------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES
Profit before financial items (EBIT) 95 78 111
Interest received 5 11 6
Interest paid -19 -17 -18
-------------------------
81 72 99
Adjustments:
Reversal of depreciation 44 42 43
Reversal of other non-cash movements -13 6 18
Change in inventories, accounts receivables
and payables -24 26 -7
-------------------------
Net cash inflow from operating activities 88 146 153
CASH FLOW FROM INVESTING ACTIVITIES
Investment in tangible fixed assets -328 -92 -370
Investment in equity interests and securities 0 0 0
Sale of fixed assets 110 4 0
including profit on sale of vessels 0 0 0
-------------------------
Net cash inflow/(outflow) from investing activities -218 -88 -370
CASH FLOW FROM FINANCING ACTIVITIES
Borrowing, mortgage debt 270 40 215
Repayment/redemption, mortgage debt -10 -10 -9
Repayment/redemption, lease liabilities -78 -53 -32
Dividends paid 0 -35 0
-------------------------
Cash inflow/(outflow) from financing activities 182 -58 174
-------------------------
Increase/(decrease) in cash and cash equivalents 52 0 -43
Cash and cash equivalents, beginning balance 522 574 574
-------------------------
Cash and cash equivalents, ending balance 574 574 531
--------------------------------------------------------------------------------
Reconciliation to United States Generally Accepted Accounting
Principles (US GAAP), as of 30 September 2003:
--------------------------------------------------------------------------------
Net Income Shareholders'
Equity
---------- -------------
DKK mill.
Net Income/Shareholders' equity as reported
under Danish GAAP 468 1,956
Dry dock costs 2 -40
Reversal of write-down of vessels 1 -12
Unrealized gain/losses on marketable securities -200 0
Derivative Financial Instruments 10 0
Share options 5 5
Deferred tax -11 -379
---------------------------
Net Income/Shareholders' equity in accordance
with US GAAP 275 1,530
--------------------------------------------------------------------------------
Average exchange rate for the first nine months of 2003 of 6.6946 DKK/USD and
exchange rate as of 30 September 2003 of 6.3728 have been used in the
translation. For a review of principles and methods used in the reconciliation,
please see TORM's 2002 Annual Report.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
A/S STEAMSHIP COMPANY TORM
(registrant)
Dated: November 21, 2003 By: Klaus Nyborg
-------------------------
Klaus Nyborg
Chief Financial Officer
03810.0001 #445262