TORM A/S
(registrant)
|
||
Dated: May 31, 2011
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By:
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/s/ Jacob Meldgaard
Name: Jacob Meldgaard
Title: Chief Executive Officer
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Interim report Q1 2011
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"We have generally experienced a stronger market during the past couple of months, while product tanker rates were low in the beginning of the first quarter," says CEO Jacob Meldgaard. As expected, TORM recognised a loss before tax of USD 45 million in the first quarter of 2011 and maintains the forecast for 2011.
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● |
EBITDA excl. sale of vessels for the first quarter of 2011 was USD 10 million, compared to USD 37 million in the first quarter of 2010. The result before tax for the first quarter of 2011 was a loss of USD 45 million, compared to a profit of USD 3 million for the same period in 2010. The result for the first quarter of 2011 was impacted by a loss of USD 6 million from sale of vessels, compared to a profit of USD 18 million in the first quarter of 2010. The result for the first quarter of 2011 was as expected.
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● |
Product tanker freight rates in the first quarter of 2011 were generally weak and lower than in the same period last year. Freight rates in the East were impacted by weak demand and competition from vessels in the crude oil market. The transatlantic market for MR tonnage was positive from mid-February with stronger rates. This was due to the effects of the cold winter in the Northern hemisphere, a number of arbitrage opportunities due to the unrest in North Africa and high levels of demand in South America.
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● |
Bulk freight rates were generally under pressure throughout the first quarter, primarily due to the increase in the number of newbuilding deliveries. The number of earning days increased in the first quarter in order to service cargo contracts.
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● |
TORM has identified additional cost savings of USD 10 million annually, with expected full effect from 2012 onwards. The savings will come from a range of procurement initiatives and by further optimising crew composition. In addition, the Company is evaluating its flag strategy in order to be aligned with the Danish maritime cluster.
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● |
TORM has in the second quarter of 2011 agreed to defer two MR newbuildings both with delivery in 2012. They are now expected to be delivered in the first quarter of 2013 and the second quarter of 2014, respectively.
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● |
Net interest-bearing debt was down to USD 1,853 million in the first quarter of 2011, from USD 1,875 million as at 31 December 2010.
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● |
TORM had undrawn credit facilities and cash of approx. USD 346 million at the end of the first quarter of 2011. Outstanding CAPEX relating to the order book amounted to USD 195 million.
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● |
Equity amounted to USD 1,075 million as at 31 March 2011, equivalent to USD 15.5 per share (DKK 81.1 per share), excluding treasury shares, giving TORM an equity ratio of 33%.
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● |
As at 31 March 2011, TORM had covered 15% of the remaining earning days in 2011 in the Tanker Division at USD/day 16,345 and 60% of the remaining earning days in the Bulk Division at USD/day 16,492.
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● |
TORM maintains the forecast of a loss before tax of USD 100-125 million in 2011. As 25,075 earning days for 2011 are unfixed as at 31 March 2011, a change in freight rates of USD/day 1,000 will impact the profit before tax by USD 25 million.
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Teleconference
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Contact TORM A/S
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TORM will be holding a teleconference for financial analysts and investors at 15:00 Danish time today. Please call 10 minutes before the conference is due to start on +45 3271 4607 (from Europe) or +1 887 491 0064 (from the USA). The presentation documents can be downloaded from TORM's website.
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Tuborg Havnevej 18
DK-2900 Hellerup, Denmark
Tel.: +45 39 17 92 00 / Fax: +45 39 17 93 93
www.torm.com
Jacob Meldgaard, CEO, tel.: +45 39 17 92 00
Roland M. Andersen, CFO, tel.: +45 39 17 92 00
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Million USD
|
Q1 2011 | Q1 2010 | 2010 | |||||||||
Income statement
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||||||||||||
Revenue
|
270.4 | 205.5 | 856.1 | |||||||||
Time charter equivalent earnings (TCE)
|
147.5 | 147.5 | 560.6 | |||||||||
Gross profit
|
27.8 | 55.9 | 179.8 | |||||||||
EBITDA
|
4.1 | 55.3 | 96.8 | |||||||||
Operating profit (EBIT)
|
-32.5 | 20.3 | -79.6 | |||||||||
Profit/(loss) before tax
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-44.9 | 2.6 | -136.2 | |||||||||
Net profit
|
-45.3 | 2.3 | -135.3 | |||||||||
Balance sheet
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||||||||||||
Total assets
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3,259.8 | 3,225.7 | 3,286.1 | |||||||||
Equity
|
1,075.0 | 1,247.7 | 1,115.3 | |||||||||
Total liabilities
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2,184.8 | 1,978.0 | 2,170.8 | |||||||||
Invested capital
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2,925.1 | 2,866.3 | 2,987.0 | |||||||||
Net interest bearing debt
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1,853.2 | 1,621.6 | 1,874.7 | |||||||||
Cash flow
|
||||||||||||
From operating activities
|
-11.1 | 20.9 | -0.6 | |||||||||
From investing activities
|
33.1 | 41.1 | -186.9 | |||||||||
Thereof investment in tangible fixed assets
|
-68.0 | -23.6 | -253.9 | |||||||||
From financing activities
|
0.4 | 2.5 | 185.6 | |||||||||
Total net cash flow
|
22.4 | 64.5 | -1.9 | |||||||||
Key financial figures
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||||||||||||
Gross margins:
|
||||||||||||
TCE
|
54.5 | % | 71.8 | % | 65.5 | % | ||||||
Gross profit
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10.3 | % | 27.2 | % | 21.0 | % | ||||||
EBITDA
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1.5 | % | 26.9 | % | 11.3 | % | ||||||
Operating profit
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-12.0 | % | 9.9 | % | -9.3 | % | ||||||
Return on Equity (RoE) (p.a.)*)
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-15.0 | % | -2.9 | % | -11.4 | % | ||||||
Return on Invested Capital (RoIC) (p.a.)**)
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-3.8 | % | 0.9 | % | -2.7 | % | ||||||
Equity ratio
|
33.0 | % | 38.7 | % | 33.9 | % | ||||||
Exchange rate DKK/USD, end of period
|
5.25 | 5.52 | 5.61 | |||||||||
Exchange rate DKK/USD, average
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5.46 | 5.38 | 5.62 | |||||||||
Share related key figures
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||||||||||||
Earnings per share, EPS USD
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-0.7 | 0.0 | -2.0 | |||||||||
Diluted earnings per share, EPS USD
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-0.7 | 0.2 | -2.0 | |||||||||
Cash flow per share, CFPS USD
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-0.2 | 0.3 | 0.0 | |||||||||
Share price, end of period (per share of DKK 5 each) DKK
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30.0 | 57.0 | 39.7 | |||||||||
Number of shares, end of period Mill.
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72.8 | 72.8 | 72.8 | |||||||||
Number of shares (excl. treasury shares), average Mill.
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69.3 | 69.2 | 69.3 | |||||||||
*) | Gains/losses from sale of vessels and the mark-to-market adjustments of 'Other financial assets' are not annualised when calculating the return on equity. | |||||||||||
**) | Gains/losses from sale of vessels are not annualised when calculating the Return on Invested Capital. |
Million USD
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Q1 2011
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Tanker
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Bulk
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Not
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||||||||||||||
Division
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Division
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allocated
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Total
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|||||||||||||
Revenue
|
219.2 | 51.2 | 0.0 | 270.4 | ||||||||||||
Port expenses, bunkers and commissions
|
-108.5 | -21.3 | 0.0 | -129.8 | ||||||||||||
Freight and bunkers derivatives
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-0.3 | 7.2 | 0.0 | 6.9 | ||||||||||||
Time charter equivalent earnings
|
110.4 | 37.1 | 0.0 | 147.5 | ||||||||||||
Charter hire
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-45.7 | -30.9 | 0.0 | -76.6 | ||||||||||||
Operating expenses
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-42.2 | -0.9 | 0.0 | -43.1 | ||||||||||||
Gross Profit
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22.5 | 5.3 | 0.0 | 27.8 | ||||||||||||
Profit/(loss) from sale of vessels
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-5.4 | -0.3 | 0.0 | -5.7 | ||||||||||||
Administrative expenses
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-14.6 | -2.5 | 0.0 | -17.1 | ||||||||||||
Other Operating income
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0.2 | 0.0 | 0.0 | 0.2 | ||||||||||||
Share of results of jointly controlled entities
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0.9 | 0.0 | -2.0 | -1.1 | ||||||||||||
EBITDA
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3.6 | 2.5 | -2.0 | 4.1 | ||||||||||||
Impairment losses on jointly controlled entities
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0.0 | 0.0 | 0.0 | 0.0 | ||||||||||||
Depreciation and impairment losses
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-35.9 | -0.7 | 0.0 | -36.6 | ||||||||||||
Operating profit (EBIT)
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-32.3 | 1.8 | -2.0 | -32.5 | ||||||||||||
Financial items, net
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- | - | -12.4 | -12.4 | ||||||||||||
Profit/(Loss) before tax
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- | - | -14.4 | -44.9 | ||||||||||||
Tax
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- | - | -0.4 | -0.4 | ||||||||||||
Net profit/(loss)
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- | - | -14.8 | -45.3 | ||||||||||||
The activity in TORM's 50% ownership of FR8 Holding Pte. Ltd. is included in "Not-allocated".
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2011
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2012
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2013
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2011
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2012
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2013
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|||||||||||||||||||
Owned days
|
||||||||||||||||||||||||
LR2
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3,509 | 4,732 | 4,719 | |||||||||||||||||||||
LR1
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1,913 | 2,550 | 2,543 | |||||||||||||||||||||
MR
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10,328 | 14,868 | 15,250 | |||||||||||||||||||||
SR
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2,961 | 4,004 | 3,993 | |||||||||||||||||||||
Tanker Division
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18,711 | 26,154 | 26,505 | |||||||||||||||||||||
Panamax
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546 | 769 | 1,423 | |||||||||||||||||||||
Handymax
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- | - | - | |||||||||||||||||||||
Bulk Division
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546 | 769 | 1,423 | |||||||||||||||||||||
Total
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19,257 | 26,923 | 27,928 | |||||||||||||||||||||
T/C in days
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T/C in costs (USD/day)
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|||||||||||||||||||||||
LR2
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- | - | - | - | - | - | ||||||||||||||||||
LR1
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4,548 | 4,819 | 2,978 | 21,637 | 21,909 | 23,882 | ||||||||||||||||||
MR
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3,206 | 3,820 | 3,575 | 16,053 | 15,626 | 15,605 | ||||||||||||||||||
SR
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- | - | - | - | - | - | ||||||||||||||||||
Tanker Division
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7,754 | 8,639 | 6,553 | 19,328 | 19,131 | 19,366 | ||||||||||||||||||
Panamax
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4,309 | 4,342 | 4,148 | 16,303 | 15,894 | 16,200 | ||||||||||||||||||
Handymax
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1,474 | 697 | 363 | 16,415 | 16,855 | 15,995 | ||||||||||||||||||
Bulk Division
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5,783 | 5,039 | 4,511 | 16,331 | 16,027 | 16,184 | ||||||||||||||||||
Total
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13,537 | 13,678 | 11,064 | 18,048 | 17,987 | 18,069 | ||||||||||||||||||
Total physical days
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Covered days
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|||||||||||||||||||||||
LR2
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3,509 | 4,732 | 4,719 | 511 | 130 | - | ||||||||||||||||||
LR1
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6,461 | 7,369 | 5,521 | 706 | 532 | 365 | ||||||||||||||||||
MR
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13,534 | 18,688 | 18,825 | 1,279 | 404 | - | ||||||||||||||||||
SR
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2,961 | 4,004 | 3,993 | 1,446 | 167 | - | ||||||||||||||||||
Tanker Division
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26,465 | 34,793 | 33,058 | 3,942 | 1,234 | 365 | ||||||||||||||||||
Panamax
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4,855 | 5,111 | 5,571 | 2,598 | 430 | - | ||||||||||||||||||
Handymax
|
1,474 | 697 | 363 | 1,180 | 606 | 606 | ||||||||||||||||||
Bulk Division
|
6,329 | 5,808 | 5,934 | 3,777 | 1,036 | 606 | ||||||||||||||||||
Total
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32,794 | 40,601 | 38,992 | 7,719 | 2,270 | 971 | ||||||||||||||||||
Covered %
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Coverage rates (USD/day)
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|||||||||||||||||||||||
LR2
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15 | % | 3 | % | 0 | % | 22,969 | 22,962 | - | |||||||||||||||
LR1
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11 | % | 7 | % | 7 | % | 16,788 | 17,476 | 15,666 | |||||||||||||||
MR
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9 | % | 2 | % | 0 | % | 17,385 | 15,403 | - | |||||||||||||||
SR
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49 | % | 4 | % | 0 | % | 12,866 | 12,263 | - | |||||||||||||||
Tanker Division
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15 | % | 4 | % | 1 | % | 16,345 | 16,671 | 15,666 | |||||||||||||||
Panamax
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54 | % | 8 | % | 0 | % | 17,533 | 21,322 | - | |||||||||||||||
Handymax
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80 | % | 87 | % | 167 | % | 14,200 | 17,000 | 17,000 | |||||||||||||||
Bulk Division
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60 | % | 18 | % | 10 | % | 16,492 | 18,794 | 17,000 | |||||||||||||||
Total
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24 | % | 6 | % | 2 | % | 16,417 | 17,640 | 16,499 | |||||||||||||||
Fair value of freight rate contracts that are mark-to-market in the income statement (USD million):
|
|
Contracts not included above
|
0.0 |
Contracts included above
|
1.4 |
Actual number of days can vary from projected number of days primarily due to vessel sales and delays of vessel deliveries. T/C in costs do not include potential extra payments from profit split arrangements.
|
Q1 10 | Q2 10 | Q3 10 | Q4 10 | Q1 11 |
Change
Q1 10
- Q1 11
|
12 month
avg.
|
||||||||||||||||||||||
LR2 (Aframax, 90-110,000 DWT)
|
||||||||||||||||||||||||||||
Available earning days
|
1,163 | 1,122 | 1,098 | 1,193 | 1,157 | -1 | % | |||||||||||||||||||||
Spot rates (USD/day)1)
|
19,270 | 17,185 | 19,848 | 17,061 | 10,890 | -43 | % | |||||||||||||||||||||
TCE (USD/day)2)
|
17,375 | 15,583 | 17,278 | 15,123 | 13,524 | -22 | % | 15,377 | ||||||||||||||||||||
Operating days
|
1,080 | 1,092 | 1,104 | 1,196 | 1,170 | 8 | % | |||||||||||||||||||||
Operating expenses (USD/day)3)
|
6,908 | 6,301 | 6,571 | 6,614 | 7,698 | 11 | % | 6,796 | ||||||||||||||||||||
LR1 (Panamax 75-85,000 DWT)
|
||||||||||||||||||||||||||||
Available earning days
|
1,748 | 1,777 | 2,094 | 2,195 | 2,085 | 19 | % | |||||||||||||||||||||
Spot rates (USD/day)1)
|
16,273 | 14,903 | 14,662 | 10,750 | 14,435 | -11 | % | |||||||||||||||||||||
TCE (USD/day)2)
|
16,686 | 15,509 | 14,628 | 12,172 | 14,654 | -12 | % | 14,241 | ||||||||||||||||||||
Operating days
|
810 | 749 | 714 | 644 | 630 | -22 | % | |||||||||||||||||||||
Operating expenses (USD/day)3)
|
6,454 | 5,420 | 5,729 | 5,650 | 6,577 | 2 | % | 5,844 | ||||||||||||||||||||
MR (45,000 DWT)
|
||||||||||||||||||||||||||||
Available earning days
|
3,755 | 3,916 | 4,212 | 4,053 | 4,263 | 14 | % | |||||||||||||||||||||
Spot rates (USD/day)1)
|
14,179 | 12,567 | 13,753 | 12,524 | 12,760 | -10 | % | |||||||||||||||||||||
TCE (USD/day)2)
|
14,700 | 12,363 | 14,280 | 11,993 | 12,768 | -13 | % | 12,851 | ||||||||||||||||||||
Operating days
|
2,790 | 2,951 | 3,128 | 3,281 | 3,412 | 22 | % | |||||||||||||||||||||
Operating expenses (USD/day)3)
|
6,883 | 6,053 | 6,388 | 6,261 | 6,628 | -4 | % | 6,333 | ||||||||||||||||||||
SR (35,000 DWT)
|
||||||||||||||||||||||||||||
Available earning days
|
1,002 | 979 | 951 | 1,007 | 969 | -3 | % | |||||||||||||||||||||
Spot rates (USD/day)1)
|
12,954 | 13,673 | 9,478 | 9,692 | 10,410 | -20 | % | |||||||||||||||||||||
TCE (USD/day)2)
|
18,034 | 16,099 | 13,851 | 12,090 | 11,319 | -37 | % | 13,340 | ||||||||||||||||||||
Operating days
|
990 | 1,001 | 1,012 | 1,012 | 990 | 0 | % | |||||||||||||||||||||
Operating expenses (USD/day)3)
|
6,041 | 4,821 | 6,274 | 6,075 | 6,517 | 8 | % | 5,922 | ||||||||||||||||||||
1) Spot rates = Time Charter Equivalent Earnings for all charters with less than 6 months duration = Gross freight income less bunker, broker
commissions and port expenses.
|
2) TCE = Time Charter Equivalent Earnings = Gross freight income less bunker, commissions and port expenses.
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3) Operating expenses are related to owned vessels.
|
Bulk Division
|
Q1 10 | Q2 10 | Q3 10 | Q4 10 | Q1 11 |
Change
|
12 month
avg.
|
|||||||||||||||||||||
Q1 10 | ||||||||||||||||||||||||||||
- Q1 11 | ||||||||||||||||||||||||||||
Panamax (60-80,000 DWT)
|
||||||||||||||||||||||||||||
Available earning days
|
1,119 | 1,060 | 1,189 | 1,193 | 1,524 | 36 | % | |||||||||||||||||||||
TCE (USD/day)1)
|
18,298 | 18,611 | 20,418 | 19,294 | 15,851 | -13 | % | 18,544 | ||||||||||||||||||||
Operating days
|
315 | 182 | 184 | 184 | 180 | -43 | % | |||||||||||||||||||||
Operating expenses (USD/day)2)
|
5,187 | 4,603 | 4,297 | 3,505 | 4,836 | -7 | % | 4,310 | ||||||||||||||||||||
Handymax (40-55,000 DWT)
|
||||||||||||||||||||||||||||
Available earning days
|
- | - | - | 30 | 566 | |||||||||||||||||||||||
TCE (USD/day)1)
|
- | - | - | 11,919 | 11,544 | |||||||||||||||||||||||
Operating days
|
- | - | - | - | - | |||||||||||||||||||||||
Operating expenses (USD/day)2)
|
- | - | - | - | - |
1) TCE = Time Charter Equivalent Earnings = Gross freight income less bunker, commissions and port expenses.
|
2) Operating expenses are related to owned vessels.
|
Current fleet
|
Newbuildings and TC-in deliveries with a period >= 12 months
|
|||||||||||||||||||||||||||||||||||
Q4 2010 |
Changes
|
Q1 2011 | Q2 2011 | Q3 2011 | Q4 2011 | 2012 | 2013 | 2014 | ||||||||||||||||||||||||||||
Owned vessels
|
||||||||||||||||||||||||||||||||||||
LR2
|
13.0 | - | 13.0 | |||||||||||||||||||||||||||||||||
LR1
|
7.5 | - | 7.5 | |||||||||||||||||||||||||||||||||
MR
|
38.0 | 1.0 | 39.0 | 1.0 | 3.0 | - | - | |||||||||||||||||||||||||||||
SR
|
11.0 | - | 11.0 | |||||||||||||||||||||||||||||||||
Tanker Division
|
69.5 | 1.0 | 70.5 | - | - | 1.0 | 3.0 | - | - | |||||||||||||||||||||||||||
Panamax
|
2.0 | - | 2.0 | 1.0 | 1.0 | |||||||||||||||||||||||||||||||
Handymax
|
- | - | - | |||||||||||||||||||||||||||||||||
Bulk Division
|
2.0 | - | 2.0 | - | - | - | 1.0 | 1.0 | - | |||||||||||||||||||||||||||
Total
|
71.5 | 1.0 | 72.5 | - | - | 1.0 | 4.0 | 1.0 | - | |||||||||||||||||||||||||||
TC-in vessels with contract period >= 12 months
|
||||||||||||||||||||||||||||||||||||
LR2
|
- | - | - | |||||||||||||||||||||||||||||||||
LR1
|
16.0 | - | 16.0 | 1.0 | ||||||||||||||||||||||||||||||||
MR
|
9.0 | 2.0 | 11.0 | 1.0 | ||||||||||||||||||||||||||||||||
SR
|
- | - | - | |||||||||||||||||||||||||||||||||
Tanker Division
|
25.0 | 2.0 | 27.0 | 2.0 | - | - | - | - | - | |||||||||||||||||||||||||||
Panamax
|
12.0 | (1.0 | ) | 11.0 | 1.0 | 1.0 | 2.0 | 1.0 | 2.0 | |||||||||||||||||||||||||||
Handymax
|
1.0 | 1.0 | 2.0 | |||||||||||||||||||||||||||||||||
Bulk Division
|
13.0 | - | 13.0 | 1.0 | 1.0 | - | 2.0 | 1.0 | 2.0 | |||||||||||||||||||||||||||
Total
|
38.0 | 2.0 | 40.0 | 3.0 | 1.0 | - | 2.0 | 1.0 | 2.0 | |||||||||||||||||||||||||||
T/C-in vessels with contract period < 12 months
|
||||||||||||||||||||||||||||||||||||
LR2
|
||||||||||||||||||||||||||||||||||||
LR1
|
||||||||||||||||||||||||||||||||||||
MR
|
||||||||||||||||||||||||||||||||||||
SR
|
||||||||||||||||||||||||||||||||||||
Tanker Division
|
- | - | - | |||||||||||||||||||||||||||||||||
Panamax
|
1.0 | 10.0 | 11.0 | |||||||||||||||||||||||||||||||||
Handymax
|
2.0 | 8.0 | 10.0 | |||||||||||||||||||||||||||||||||
Bulk Division
|
3.0 | 18.0 | 21.0 | |||||||||||||||||||||||||||||||||
Total
|
3.0 | 18.0 | 21.0 | |||||||||||||||||||||||||||||||||
Pools/Commercial managment
|
25.0 | 1.0 | 26.0 | |||||||||||||||||||||||||||||||||
Total fleet
|
137.5 | 159.5 | ||||||||||||||||||||||||||||||||||
Notes on the financial reporting
|
|
Accounting policies
|
|
The interim report for the first quarter of 2011 is presented in accordance with IAS 34 "Interim Financial Reporting" as adopted by the EU and additional Danish disclosure requirements for interim reports of listed companies. Except for the instances mentioned below, the interim report has been prepared using the accounting policies as for the Annual Report for 2010. The accounting policies are described in more detail in the Annual Report for 2010. As from 1 January 2011, TORM has implemented the following new or amended standards and interpretations: Amendment to IAS 24 "Related Party Disclosures", amendment to IAS 32 "Financial Instruments: Presentation: Classification of Rights Issues", smaller changes from Improvements to IFRS May 2010, amendment to IFRIC 14 "Prepayments of a Minimum Funding Requirement" and IFRIC 19 "Extinguishing Financial Liabilities with Equity Instruments". The new or amended standards and interpretations have not affected recognition and measurement in TORM's interim report for the first quarter of 2011. The interim report for the first quarter of 2011 is unaudited, in line with the normal practice.
|
|
Income statement
|
|
The gross profit for the first quarter of 2011 was USD 28 million, compared to USD 56 million for the corresponding period in 2010. Administrative costs in the first quarter of 2011 were USD 17 million, compared to USD 18 million in the first quarter of 2010.
The result before depreciation (EBITDA) for the period was USD 4 million, as against USD 55 million for the first quarter of 2010. The EBITDA in the first quarter was impacted by losses of USD 6 million from sale of vessels. The EBITDA for the first quarter of 2010 included profits of USD 18 million from sale of vessels.
Depreciation in the first quarter of 2011 was USD 37 million, up USD 2 million on the first quarter of 2010. This increase was due to acquired tonnage.
The primary operating result for the first quarter of 2011 was a loss of USD 33 million, compared to a profit of USD 20 million in the same quarter of 2010.
The first quarter of 2011 was impacted by mark-to-market non-cash adjustments of USD 8 million in total, USD 6 million in connection with FFA/bunker derivatives and USD 2 million on other financial derivatives.
The result after tax was a loss of USD 45 million in the first quarter of 2011, as against a profit of USD 2 million in the first quarter of 2010.
|
|
Assets
|
|
Total assets were down from USD 3,286 million as at 31 December 2010 to USD 3,260 million as at 31 March 2011. TORM estimates the fleet's total long-term earning potential each quarter based on future discounted cash flows. The estimated value for the fleet as at 31 March 2011 supports the book value.
|
Debt
|
|
Net interest-bearing debt was down in the first quarter of 2011 to USD 1,853 million from USD 1,875 million as at 31 December 2010.
|
|
Equity
|
|
Equity declined in the first quarter of 2011 from USD 1,115 million as at 31 December 2010 to USD 1,075 million, due to the loss during the period. Equity as a percentage of total assets was 33% as at 31 March 2011, compared to 34% as at 31 December 2010.
TORM held 3,230,432 treasury shares as at 31 March 2011, equivalent to 4.4% of the Company's share capital. The number of treasury shares held is down 231,148 since 31 December 2010, as shares have been allocated to staff in connection with the incentive scheme for the period 2007-2009.
|
|
Liquidity
|
|
TORM had undrawn credit facilities and cash of approx. USD 346 million at the end of the first quarter of 2011. Outstanding CAPEX relating to the order book amounted to USD 195 million.
|
|
Management
|
Board
|
|
Jacob Meldgaard, CEO
Roland M. Andersen, CFO
|
Niels Erik Nielsen, Chairman
Christian Frigast, Deputy Chairman
Peter Abildgaard
Kari Millum Gardarnar
Rasmus Johannes Hoffmann
Jesper Jarlbæk
Gabriel Panayotides
Angelos Papoulias
Nicos Zouvelos
|
Million USD
|
Q1 2011 | Q1 2010 | 2010 | |||||||||
Revenue
|
270.4 | 205.5 | 856.1 | |||||||||
Port expenses, bunkers and commissions
|
-129.8 | -59.9 | -298.8 | |||||||||
Freight and bunkers derivatives
|
6.9 | 1.9 | 3.3 | |||||||||
Time charter equivalent earnings
|
147.5 | 147.5 | 560.6 | |||||||||
Charter hire
|
-76.6 | -51.7 | -228.6 | |||||||||
Operating expenses
|
-43.1 | -39.9 | -152.2 | |||||||||
Gross profit (Net earnings from shipping activities)
|
27.8 | 55.9 | 179.8 | |||||||||
Profit from sale of vessels
|
-5.7 | 18.2 | 1.9 | |||||||||
Administrative expenses
|
-17.1 | -18.1 | -78.2 | |||||||||
Other operating income
|
0.2 | 1.7 | 4.8 | |||||||||
Share of results of jointly controlled entities
|
-1.1 | -2.4 | -11.5 | |||||||||
EBITDA
|
4.1 | 55.3 | 96.8 | |||||||||
Impairment losses on jointly controlled entities
|
0.0 | 0.0 | -35.0 | |||||||||
Depreciation and impairment losses
|
-36.6 | -35.0 | -141.4 | |||||||||
Operating profit (EBIT)
|
-32.5 | 20.3 | -79.6 | |||||||||
Financial items
|
-12.4 | -17.7 | -56.6 | |||||||||
Profit before tax
|
-44.9 | 2.6 | -136.2 | |||||||||
Tax
|
-0.4 | -0.3 | 1.0 | |||||||||
Net profit/(loss) for the period
|
-45.3 | 2.3 | -135.2 | |||||||||
Earnings per share, EPS
|
||||||||||||
Earnings per share, EPS (USD)
|
-0.7 | 0.0 | -2.0 | |||||||||
Earnings per share, EPS (DKK) *)
|
3.6 | 0.2 | -11.0 | |||||||||
*) The key figures have been translated from USD to DKK using the average USD/DKK exchange change rate for the period in question.
|
Million USD
|
Q1 2011 | Q1 2010 | 2010 | |||||||||
Net profit/(loss) for the period
|
-45.3 | 2.3 | -135.2 | |||||||||
Other comprehensive income:
|
||||||||||||
Exchange rate adjustment arising on translation
|
||||||||||||
of entities using a measurement currency different
|
||||||||||||
from USD
|
0.0 | 0.0 | 0.0 | |||||||||
Fair value adjustment on hedging instruments
|
3.3 | -4.3 | -4.9 | |||||||||
Value adjustment on hedging instruments transferred
|
||||||||||||
to income statement
|
0.9 | 1.6 | 6.3 | |||||||||
Value adjustment on hedging instruments transferred
|
||||||||||||
to assets
|
0.0 | 0.0 | 0.0 | |||||||||
Fair value adjustment on available for sale investments
|
0.2 | -0.2 | -0.2 | |||||||||
Transfer to income statement on sale of available for sale
|
||||||||||||
investments
|
0.0 | 0.0 | 0.0 | |||||||||
Other comprehensive income after tax
|
4.4 | -2.9 | 1.2 | |||||||||
Total comprehensive income
|
-40.9 | -0.6 | -134.0 | |||||||||
Million USD
|
Q1 10 | Q2 10 | Q3 10 | Q4 10 | Q1 11 | ||||||||||||||
Revenue
|
205.5 | 201.3 | 225.7 | 223.6 | 270.4 | ||||||||||||||
Port expenses, bunkers and commissions
|
-59.9 | -70.6 | -77.4 | -90.9 | -129.8 | ||||||||||||||
Freight and bunkers derivatives
|
1.9 | -0.5 | 0.9 | 1.0 | 6.9 | ||||||||||||||
Time charter equivalent earnings
|
147.5 | 130.2 | 149.2 | 133.7 | 147.5 | ||||||||||||||
Charter hire
|
-51.7 | -54.4 | -61.3 | -61.2 | -76.6 | ||||||||||||||
Operating expenses
|
-39.9 | -34.7 | -38.6 | -39.0 | -43.1 | ||||||||||||||
Gross profit (Net earnings from shipping activities)
|
55.9 | 41.1 | 49.3 | 33.5 | 27.8 | ||||||||||||||
Profit from sale of vessels
|
18.2 | 0.0 | 0.0 | -16.3 | -5.7 | ||||||||||||||
Administrative expenses
|
-18.1 | -17.5 | -24.5 | -18.1 | -17.1 | ||||||||||||||
Other operating income
|
1.7 | 1.3 | 0.9 | 0.9 | 0.2 | ||||||||||||||
Share of results of jointly controlled entities
|
-2.4 | -1.3 | -3.1 | -4.7 | -1.1 | ||||||||||||||
EBITDA
|
55.3 | 23.6 | 22.6 | -4.7 | 4.1 | ||||||||||||||
Impairment losses on jointly controlled entities
|
0.0 | 0.0 | 0.0 | -35.0 | 0.0 | ||||||||||||||
Depreciation and impairment losses
|
-35.0 | -34.4 | -35.1 | -36.9 | -36.6 | ||||||||||||||
Operating profit (EBIT)
|
20.3 | -10.8 | -12.5 | -76.6 | -32.5 | ||||||||||||||
Financial items
|
-17.7 | -13.6 | -14.2 | -11.1 | -12.4 | ||||||||||||||
Profit before tax
|
2.6 | -24.4 | -26.7 | -87.7 | -44.9 | ||||||||||||||
Tax
|
-0.3 | 0.3 | 0.2 | 0.8 | -0.4 | ||||||||||||||
Net profit/(loss) for the period
|
2.3 | -24.1 | -26.5 | -86.9 | -45.3 | ||||||||||||||
Earnings per share, EPS
|
|||||||||||||||||||
Earnings per share, EPS (USD)
|
0.0 | -0.3 | -0.4 | -1.3 | -0.7 |
Million USD
|
31 March
|
31 March
|
31 December
|
|||||||||
2011
|
2010
|
2010
|
||||||||||
NON-CURRENT ASSETS
|
||||||||||||
Intangible assets
|
||||||||||||
Goodwill
|
89.2 | 89.2 | 89.2 | |||||||||
Other intangible assets
|
2.0 | 2.2 | 2.1 | |||||||||
Total intangible assets
|
91.2 | 91.4 | 91.3 | |||||||||
Tangible fixed assets
|
||||||||||||
Land and buildings
|
3.6 | 3.7 | 3.6 | |||||||||
Vessels and capitalized dry-docking
|
2,605.1 | 2,358.9 | 2,560.1 | |||||||||
Prepayments on vessels
|
108.0 | 295.0 | 227.1 | |||||||||
Other plant and operating equipment
|
8.7 | 9.9 | 9.5 | |||||||||
Total tangible fixed assets
|
2,725.4 | 2,667.5 | 2,800.3 | |||||||||
Financial assets
|
||||||||||||
Investment in jointly controlled entities
|
71.2 | 120.6 | 72.9 | |||||||||
Loans to jointly controlled entities
|
9.8 | 37.7 | 10.2 | |||||||||
Other investments
|
3.1 | 3.0 | 3.0 | |||||||||
Other financial assets
|
6.0 | 6.0 | 6.0 | |||||||||
Total financial assets
|
90.1 | 167.3 | 92.1 | |||||||||
TOTAL NON-CURRENT ASSETS
|
2,906.7 | 2,926.2 | 2,983.7 | |||||||||
CURRENT ASSETS
|
||||||||||||
Bunkers
|
52.7 | 26.5 | 41.1 | |||||||||
Freight receivables, etc.
|
108.4 | 56.8 | 108.2 | |||||||||
Other receivables
|
22.6 | 13.0 | 12.7 | |||||||||
Other financial assets
|
0.0 | 0.0 | 0.0 | |||||||||
Prepayments
|
27.0 | 16.9 | 20.4 | |||||||||
Cash and cash equivalents
|
142.4 | 186.3 | 120.0 | |||||||||
TOTAL CURRENT ASSETS
|
353.1 | 299.5 | 302.4 | |||||||||
TOTAL ASSETS
|
3,259.8 | 3,225.7 | 3,286.1 |
Million USD
|
31 March
|
31 March
|
31 December
|
|||||||||
2011
|
2010
|
2010
|
||||||||||
EQUITY
|
||||||||||||
Common shares
|
61.1 | 61.1 | 61.1 | |||||||||
Treasury shares
|
-17.3 | -17.9 | -17.9 | |||||||||
Revaluation reserves
|
-2.3 | -2.4 | -2.5 | |||||||||
Retained profit
|
1,027.0 | 1,208.8 | 1,072.3 | |||||||||
Proposed dividends
|
0.0 | 0.0 | 0.0 | |||||||||
Hedging reserves
|
2.4 | -6.0 | -1.8 | |||||||||
Translation reserves
|
4.1 | 4.1 | 4.1 | |||||||||
TOTAL EQUITY
|
1,075.0 | 1,247.7 | 1,115.3 | |||||||||
LIABILITIES
|
||||||||||||
Non-current liabilities
|
||||||||||||
Deferred tax liability
|
54.2 | 54.8 | 54.3 | |||||||||
Mortgage debt and bank loans
|
1,750.9 | 1,631.3 | 1,750.4 | |||||||||
Finance lease liabilities
|
30.7 | 31.6 | 31.0 | |||||||||
Acquired liabilities related to options on vessels
|
0.0 | 1.5 | 0.0 | |||||||||
TOTAL NON-CURRENT LIABILITIES
|
1,835.8 | 1,719.2 | 1,835.7 | |||||||||
Current liabilities
|
||||||||||||
Mortgage debt and bank loans
|
212.0 | 143.2 | 211.3 | |||||||||
Finance lease liabilities
|
2.0 | 1.8 | 2.0 | |||||||||
Trade payables
|
58.0 | 27.3 | 48.0 | |||||||||
Current tax liabilities
|
1.1 | 3.2 | 1.7 | |||||||||
Other liabilities
|
74.5 | 80.1 | 70.2 | |||||||||
Acquired liabilities related to options on vessels
|
1.4 | 1.8 | 1.9 | |||||||||
Acquired time charter contracts
|
0.0 | 1.4 | 0.0 | |||||||||
Deferred income
|
0.0 | 0.0 | 0.0 | |||||||||
TOTAL CURRENT LIABILITIES
|
349.0 | 258.8 | 335.1 | |||||||||
TOTAL LIABILITIES
|
2,184.8 | 1,978.0 | 2,170.8 | |||||||||
TOTAL EQUITY AND LIABILITIES
|
3,259.8 | 3,225.7 | 3,286.1 |
Million USD
|
Common
|
Treasury
|
Retained
|
Proposed
|
Revaluation
|
Hedging
|
Translation
|
Total
|
||||||||||||||||||||||||
shares
|
shares
|
profit
|
dividends
|
reserves
|
reserves
|
reserves
|
||||||||||||||||||||||||||
Equity at 1 January 2011
|
61.1 | -17.9 | 1,072.3 | 0.0 | -2.5 | -1.8 | 4.1 | 1,115.3 | ||||||||||||||||||||||||
Changes in equity Q1 2011:
|
||||||||||||||||||||||||||||||||
Purchase treasury shares, cost
|
- | - | - | - | - | - | - | 0.0 | ||||||||||||||||||||||||
Disposal treasury shares, cost
|
- | 0.6 | - | - | - | - | - | 0.6 | ||||||||||||||||||||||||
Gain/loss from disposal treasury shares
|
- | - | -0.6 | - | - | - | - | -0.6 | ||||||||||||||||||||||||
Share-based compensation
|
- | - | 0.6 | - | - | - | - | 0.6 | ||||||||||||||||||||||||
Comprehensive income for the period
|
- | - | -45.3 | - | 0.2 | 4.2 | 0.0 | -40.9 | ||||||||||||||||||||||||
Total changes in equity Q1 2011
|
0.0 | 0.6 | -45.3 | 0.0 | 0.2 | 4.2 | 0.0 | -40.3 | ||||||||||||||||||||||||
Equity at 31 March 2011
|
61.1 | -17.3 | 1,027.0 | 0.0 | -2.3 | 2.4 | 4.1 | 1,075.0 |
Million USD
|
Common
|
Treasury
|
Retained
|
Proposed
|
Revaluation
|
Hedging
|
Translation
|
Total
|
||||||||||||||||||||||||
shares
|
shares
|
profit
|
dividends
|
reserves
|
reserves
|
reserves
|
||||||||||||||||||||||||||
Equity at 1 January 2010
|
61.1 | -18.1 | 1,205.1 | 0.0 | -2.2 | -3.3 | 4.1 | 1,246.7 | ||||||||||||||||||||||||
Changes in equity Q1 2010:
|
||||||||||||||||||||||||||||||||
Purchase treasury shares, cost
|
- | - | - | - | - | - | - | 0.0 | ||||||||||||||||||||||||
Disposal treasury shares, cost
|
- | 0.2 | - | - | - | - | - | 0.2 | ||||||||||||||||||||||||
Gain/loss from disposal treasury shares
|
- | - | -0.2 | - | - | - | - | -0.2 | ||||||||||||||||||||||||
Share-based compensation
|
- | - | 1.6 | - | - | - | - | 1.6 | ||||||||||||||||||||||||
Comprehensive income for the period
|
- | - | 2.3 | - | -0.2 | -2.7 | - | -0.6 | ||||||||||||||||||||||||
Total changes in equity Q1 2010
|
0.0 | 0.2 | 3.7 | 0.0 | -0.2 | -2.7 | 0.0 | 1.0 | ||||||||||||||||||||||||
Equity at 31 March 2010
|
61.1 | -17.9 | 1,208.8 | 0.0 | -2.4 | -6.0 | 4.1 | 1,247.7 |
Q1 2011 | Q1 2010 | 2010 | ||||||||||
Million USD
|
||||||||||||
Cash flow from operating activities
|
||||||||||||
Operating profit
|
-32.5 | 20.3 | -79.6 | |||||||||
Adjustments:
|
||||||||||||
Reversal of profit from sale of vessels
|
5.7 | -18.2 | -1.9 | |||||||||
Reversal of depreciation and impairment losses
|
36.6 | 35.0 | 141.4 | |||||||||
Reversal of impairment of jointly controlled entities
|
0.0 | 0.0 | 35.0 | |||||||||
Reversal of share of results of jointly controlled entities
|
1.1 | 2.4 | 11.5 | |||||||||
Reversal of other non-cash movements
|
-6.7 | -4.0 | -8.0 | |||||||||
Dividends received
|
0.0 | 0.0 | 0.0 | |||||||||
Dividends received from joint controlled entities
|
0.7 | 0.3 | 1.7 | |||||||||
Interest received and exchange rate gains
|
3.6 | 0.1 | 0.5 | |||||||||
Interest paid and exchange rate losses
|
-15.8 | -14.2 | -54.4 | |||||||||
Income taxes paid/repaid
|
-1.2 | -2.9 | -3.6 | |||||||||
Change in bunkers, accounts receivables and payables
|
-2.6 | 2.1 | -43.2 | |||||||||
Net cash flow from operating activities
|
-11.1 | 20.9 | -0.6 | |||||||||
Cash flow from investing activities
|
||||||||||||
Investment in tangible fixed assets
|
-68.0 | -23.6 | -253.9 | |||||||||
Investment in equity interests and securities
|
0.0 | 0.0 | 0.0 | |||||||||
Loans to jointly controlled entities
|
0.5 | 1.1 | 3.3 | |||||||||
Payment of liability related to options on vessels
|
0.0 | 0.0 | 0.0 | |||||||||
Received share on options on vessels
|
0.0 | 0.0 | 0.0 | |||||||||
Sale of equity interests and securities
|
0.0 | 0.0 | 0.0 | |||||||||
Sale of non-current assets
|
100.6 | 63.6 | 63.7 | |||||||||
Net cash flow from investing activities
|
33.1 | 41.1 | -186.9 | |||||||||
Cash flow from financing activities
|
||||||||||||
Borrowing, mortgage debt
|
26.7 | 25.7 | 344.7 | |||||||||
Borrowing, finance lease liabilities
|
0.0 | 0.0 | 0.0 | |||||||||
Repayment/redemption, mortgage debt
|
-25.5 | -22.0 | -153.7 | |||||||||
Repayment/redemption, finance lease liabilities
|
-0.8 | -1.2 | -5.3 | |||||||||
Dividends paid
|
0.0 | 0.0 | 0.0 | |||||||||
Purchase/disposals of treasury shares
|
0.0 | 0.0 | 0.0 | |||||||||
Net cash flow from financing activities
|
0.4 | 2.5 | 185.7 | |||||||||
Net cash flow from operating, investing and financing activities
|
22.4 | 64.5 | -1.8 | |||||||||
Cash and cash equivalents, beginning balance
|
120.0 | 121.8 | 121.8 | |||||||||
Cash and cash equivalents, ending balance
|
142.4 | 186.3 | 120.0 |
Q1 10 | Q2 10 | Q3 10 | Q4 10 | Q1 11 | ||||||||||||||||
Million USD
|
||||||||||||||||||||
Cash flow from operating activities
|
||||||||||||||||||||
Operating profit
|
20.3 | -10.8 | -12.5 | -76.6 | -32.5 | |||||||||||||||
Adjustments:
|
||||||||||||||||||||
Reversal of profit from sale of vessels
|
-18.2 | 0.0 | 0.0 | 16.3 | 5.7 | |||||||||||||||
Reversal of depreciation and impairment losses
|
35.0 | 34.4 | 35.1 | 36.9 | 36.6 | |||||||||||||||
Reversal of impairment of jointly controlled entities
|
0.0 | 0.0 | 0.0 | 35.0 | 0.0 | |||||||||||||||
Reversal of share of results of jointly controlled entities
|
2.4 | 1.3 | 3.1 | 4.7 | 1.1 | |||||||||||||||
Reversal of other non-cash movements
|
-4.0 | -3.8 | -0.3 | 0.1 | -6.7 | |||||||||||||||
Dividends received
|
0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |||||||||||||||
Dividends received from joint controlled entities
|
0.3 | 0.9 | 0.2 | 0.3 | 0.7 | |||||||||||||||
Interest received and exchange rate gains
|
0.1 | 0.3 | 2.2 | -2.1 | 3.6 | |||||||||||||||
Interest paid and exchange rate losses
|
-14.2 | -12.7 | -14.0 | -13.5 | -15.8 | |||||||||||||||
Income taxes paid/repaid
|
-2.9 | 0.0 | -0.3 | -0.4 | -1.2 | |||||||||||||||
Change in bunkers, accounts receivables and payables
|
2.1 | -9.8 | 7.8 | -43.3 | -2.6 | |||||||||||||||
Net cash flow from operating activities
|
20.9 | -0.2 | 21.3 | -42.6 | -11.1 | |||||||||||||||
Cash flow from investing activities
|
||||||||||||||||||||
Investment in tangible fixed assets
|
-23.6 | -69.6 | -66.8 | -93.9 | -68.0 | |||||||||||||||
Investment in equity interests and securities
|
0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |||||||||||||||
Loans to jointly controlled entities
|
1.1 | 1.2 | 0.4 | 0.6 | 0.5 | |||||||||||||||
Payment of liability related to options on vessels
|
0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |||||||||||||||
Received share on options on vessels
|
0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |||||||||||||||
Sale of equity interests and securities
|
0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |||||||||||||||
Sale of non-current assets
|
63.6 | 0.1 | 0.0 | 0.0 | 100.6 | |||||||||||||||
Net cash flow from investing activities
|
41.1 | -68.3 | -66.4 | -93.3 | 33.1 | |||||||||||||||
Cash flow from financing activities
|
||||||||||||||||||||
Borrowing, mortgage debt
|
25.7 | 54.8 | 92.1 | 172.1 | 26.7 | |||||||||||||||
Borrowing, finance lease liabilities
|
0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |||||||||||||||
Repayment/redemption, mortgage debt
|
-22.0 | -50.3 | -23.6 | -57.8 | -25.5 | |||||||||||||||
Repayment/redemption, finance lease liabilities
|
-1.2 | -1.2 | -1.3 | -1.6 | -0.8 | |||||||||||||||
Dividends paid
|
0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |||||||||||||||
Purchase/disposals of treasury shares
|
0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |||||||||||||||
Net cash flow from financing activities
|
2.5 | 3.3 | 67.2 | 112.7 | 0.4 | |||||||||||||||
Net cash flow from operating, investing and financing activities
|
64.5 | -65.2 | 22.1 | -23.2 | 22.4 | |||||||||||||||
Cash and cash equivalents, beginning balance
|
121.8 | 186.3 | 121.1 | 143.2 | 120.0 | |||||||||||||||
Cash and cash equivalents, ending balance
|
186.3 | 121.1 | 143.2 | 120.0 | 142.4 |