TORM A/S
(registrant)
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Dated: November 14, 2012
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By:
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/s/ Jacob Meldgaard
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Name: Jacob Meldgaard
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Title: Chief Executive Officer
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Third quarter report 2012 |
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·
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The financial results in the third quarter of 2012 continued to be adversely affected by TORM's financial situation. EBITDA for the third quarter of 2012 was a loss of USD 11 million including positive mark-to-market non-cash adjustments of USD 6 million, compared to an EBITDA loss of USD 17 million in the third quarter of 2011. In addition, financial expenses for the third quarter of 2012 included USD 15 million in restructuring costs. The result before tax for the third quarter of 2012 was a loss of USD 78 million, compared to a loss of USD 70 million in the same period of 2011.
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·
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The product tanker freight rates were in the third quarter of 2012 at seasonally low levels. In the West, MR freight rates were negatively affected by planned refinery maintenance and limited transatlantic arbitrage. In the East, the freight rates for LR2 and LR1 vessels were supported by e.g. jet fuel cargoes from the Arabian Gulf to Brazil and the naphtha trade in general. The LR1 and LR2 freight rates also benefited from distillate arbitrage from the Middle East to the West. The MR freight rates in the East were positively impacted by imbalances within the Asia-Pacific region.
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·
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The freight rates in all bulk segments suffered in the third quarter of 2012 as the US grain harvest was affected by drought giving the lowest yield in six years. The Pacific spot market struggled as expected due to slower Indian activity during the monsoon season and the partly enforced commodity export ban by the Indonesian authorities.
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·
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As stated in announcement no. 31 dated 2 October 2012, TORM has signed a Restructuring Agreement with its banks and time charter partners that secures the Company deferral of bank debt, new liquidity and substantial savings from the restructured time charter book. As stated in announcements no. 32 and 33 dated 5 November 2012, TORM has finalized the technical completion of the restructuring including the planned changes to the share capital.
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·
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TORM's cost program has led to a reduction of administration costs to USD 15 million in the third quarter of 2012, equivalent to a reduction of 11% compared to the same period of 2011 and 34% compared to 2008.
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·
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The book value of the fleet excluding financial lease vessels as of 30 September 2012 was USD 2,167 million. Based on broker valuations, TORM's fleet excluding financial lease vessels had a market value of USD 1,316 million as of 30 September 2012. TORM estimates the fleet's total long-term earning potential each quarter based on future discounted cash flows, in accordance with IFRS requirements. The estimated value for the fleet as at 30 September 2012 supports the book value.
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·
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Net interest-bearing debt amounted to USD 1,858 million in the third quarter of 2012 compared to USD 1,852 million as at 30 June 2012.
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·
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Cash totaled USD 13 million at the end of the third quarter of 2012 and the Company had no available credit lines. TORM has no order book and therefore no CAPEX related hereto. As at 6 November 2012 the cash and available credit lines totaled USD 65 million as planned.
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·
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Book equity amounted to USD 358 million as at 30 September 2012, equivalent to USD 5.2 per share (excluding treasury shares), giving TORM an equity ratio of 14%.
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·
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By 30 September 2012, TORM had covered 15% of the remaining tanker earning days in 2012 at USD/day 13,944 and 6% of the earning days in 2013 at USD/day 15,063. 103% of the remaining bulk earning days in 2012 are covered at USD/day 10,694 and 57% of the 2013 earning days at USD/day 14,621.
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·
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TORM maintains a forecasted loss before tax of USD 350-380 million for 2012 excluding accounting effects from the execution of the restructuring, further vessel sales and potential impairment charges. Due to the complexity, TORM has asked the Danish Securities Council for a ruling on the accounting effects of the restructuring.
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Announcement no. 35 / 7 November 2012
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Third quarter report 2012
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Page 1 of 25
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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
Christian Søgaard-Christensen, IR, tel.: +45 30 76 12 88
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Q1-Q3 | Q1-Q3 | ||||||||||||||||||||
Million USD
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Q3 2012 | Q3 2011 | 2012 | 2011 | 2011 | ||||||||||||||||
Income statement
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|||||||||||||||||||||
Revenue
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256.0 | 331.8 | 838.9 | 937.9 | 1,305.2 | ||||||||||||||||
Time charter equivalent earnings (TCE)
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109.8 | 148.1 | 364.4 | 474.4 | 644.3 | ||||||||||||||||
Gross profit
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3.1 | 2.3 | 31.0 | 69.2 | 81.0 | ||||||||||||||||
EBITDA
|
-11.2 | -17.0 | -41.2 | 16.6 | -43.8 | ||||||||||||||||
Operating profit (EBIT)
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-46.4 | -53.1 | -186.0 | -92.6 | -388.6 | ||||||||||||||||
Profit/(loss) before tax
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-77.6 | -70.1 | -288.2 | -138.7 | -451.4 | ||||||||||||||||
Net profit/(loss)
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-78.5 | -70.4 | -289.3 | -140.0 | -453.0 | ||||||||||||||||
Balance sheet
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|||||||||||||||||||||
Total assets
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2,507.4 | 3,118.9 | 2,507.4 | 3,118.9 | 2,779.2 | ||||||||||||||||
Equity
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358.3 | 957.9 | 358.3 | 957.9 | 643.8 | ||||||||||||||||
Total liabilities
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2,149.1 | 2,161.0 | 2,149.1 | 2,161.0 | 2,135.4 | ||||||||||||||||
Invested capital
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2,204.4 | 2,781.8 | 2,204.4 | 2,781.8 | 2,425.1 | ||||||||||||||||
Net interest bearing debt
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1,858.2 | 1,836.1 | 1,858.2 | 1,836.1 | 1,786.8 | ||||||||||||||||
Cash flow
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|||||||||||||||||||||
From operating activities
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5.6 | -20.6 | -70.5 | -61.9 | -74.8 | ||||||||||||||||
From investing activities
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-7.9 | 10.4 | 3.2 | 103.8 | 168.1 | ||||||||||||||||
Thereof investment in tangible fixed assets
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-8.0 | -4.4 | -56.5 | -106.8 | -118.5 | ||||||||||||||||
From financing activities
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-1.9 | -41.1 | -5.7 | -66.1 | -127.8 | ||||||||||||||||
Total net cash flow
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-4.2 | -51.3 | -73.0 | -24.2 | -34.5 | ||||||||||||||||
Key financial figures
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|||||||||||||||||||||
Gross margins:
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|||||||||||||||||||||
TCE
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42.9 | % | 44.6 | % | 43.4 | % | 50.6 | % | 49.4 | % | |||||||||||
Gross profit
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1.2 | % | 0.7 | % | 3.7 | % | 7.4 | % | 6.2 | % | |||||||||||
EBITDA
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-4.4 | % | -5.1 | % | -4.9 | % | 1.8 | % | -3.4 | % | |||||||||||
Operating profit
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-18.1 | % | -16.0 | % | -22.2 | % | -9.9 | % | -29.8 | % | |||||||||||
Return on Equity (RoE) (p.a.)*)
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-62.7 | % | -27.2 | % | -75.9 | % | -17.9 | % | 51.5 | % | |||||||||||
Return on Invested Capital (RoIC) (p.a.)**)
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-8.0 | % | -7.5 | % | -10.5 | % | -4.3 | % | -14.4 | % | |||||||||||
Equity ratio
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14.3 | % | 30.7 | % | 14.3 | % | 30.7 | % | 23.2 | % | |||||||||||
Exchange rate USD/DKK, end of period
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5.77 | 5.51 | 5.77 | 5.51 | 5.75 | ||||||||||||||||
Exchange rate USD/DKK, average
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5.95 | 5.28 | 5.80 | 5.31 | 5.36 | ||||||||||||||||
Share related key figures
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|||||||||||||||||||||
Earnings per share, EPS
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USD
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-1.1 | -1.0 | -4.2 | -2.0 | -6.5 | |||||||||||||||
Diluted earnings per share, EPS
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USD
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-1.1 | -1.0 | -4.2 | -2.0 | -6.5 | |||||||||||||||
Cash flow per share, CFPS
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USD
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0.1 | -0.3 | -1.0 | -0.9 | -1.1 | |||||||||||||||
Share price, end of period (per share of DKK 5 each)
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DKK
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2.8 | 7.3 | 2.8 | 7.3 | 3.7 | |||||||||||||||
Number of shares, end of period
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Million
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72.8 | 72.8 | 72.8 | 72.8 | 72.8 | |||||||||||||||
Number of shares (excl. treasury shares), average
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Million
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69.6 | 69.6 | 69.6 | 69.5 | 69.6 |
Announcement no. 35 / 7 November 2012
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Third quarter report 2012
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Page 2 of 25
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Million USD | Q3 2012 | Q1-Q3 2012 | ||||||||||||||||||||||||||||||
Tanker
Division
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Bulk
Division
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Not allocated |
Total
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Tanker Division
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Bulk Division
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Not
allocated
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Total
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|||||||||||||||||||||||||
Revenue
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214.0 | 42.0 | 0.0 | 256.0 | 698.0 | 140.9 | 0.0 | 838.9 | ||||||||||||||||||||||||
Port expenses, bunkers and commissions
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-128.9 | -25.3 | 0.0 | -154.2 | -404.6 | -83.4 | 0.0 | -488.0 | ||||||||||||||||||||||||
Freight and bunkers derivatives
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0.4 | 7.6 | 0.0 | 8.0 | -0.1 | 13.6 | 0.0 | 13.5 | ||||||||||||||||||||||||
Time charter equivalent earnings
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85.5 | 24.3 | 0.0 | 109.8 | 293.3 | 71.1 | 0.0 | 364.4 | ||||||||||||||||||||||||
Charter hire
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-39.4 | -25.0 | 0.0 | -64.4 | -134.3 | -75.1 | 0.0 | -209.4 | ||||||||||||||||||||||||
Operating expenses
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-41.6 | -0.7 | 0.0 | -42.3 | -121.6 | -2.4 | 0.0 | -124.0 | ||||||||||||||||||||||||
Gross profit (Net earnings from shipping activities)
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4.5 | -1.4 | 0.0 | 3.1 | 37.4 | -6.4 | 0.0 | 31.0 | ||||||||||||||||||||||||
Profit from sale of vessels
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0.0 | 0.0 | 0.0 | 0.0 | -15.9 | 0.0 | 0.0 | -15.9 | ||||||||||||||||||||||||
Administrative expenses
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-13.0 | -1.9 | 0.0 | -14.9 | -42.7 | -5.3 | 0.0 | -48.0 | ||||||||||||||||||||||||
Other operating income
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0.4 | 0.0 | 0.0 | 0.4 | 1.2 | 0.1 | 0.0 | 1.3 | ||||||||||||||||||||||||
Share of results of jointly controlled entities
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0.3 | 0.0 | -0.1 | 0.2 | -5.1 | 0.0 | -4.5 | -9.6 | ||||||||||||||||||||||||
EBITDA
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-7.8 | -3.3 | -0.1 | -11.2 | -25.1 | -11.6 | -4.5 | -41.2 | ||||||||||||||||||||||||
Impairment losses on jointly controlled entities
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0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | -41.5 | -41.5 | ||||||||||||||||||||||||
Amortizations and depreciation
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-34.4 | -0.8 | 0.0 | -35.2 | -101.2 | -2.1 | 0.0 | -103.3 | ||||||||||||||||||||||||
Operating profit (EBIT)
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-42.2 | 4.1 | -0.1 | -46.4 | -126.3 | -13.7 | -46.0 | -186.0 | ||||||||||||||||||||||||
Financial income
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- | - | 1.3 | 1.3 | - | - | 8.1 | 8.1 | ||||||||||||||||||||||||
Financial expenses
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- | - | -32.5 | -32.5 | - | - | -110.3 | -110.3 | ||||||||||||||||||||||||
Profit/(loss) before tax
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- | - | -31.3 | -77.6 | - | - | -148.2 | -288.2 | ||||||||||||||||||||||||
Tax
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- | - | -0.9 | -0.9 | - | - | -1.1 | -1.1 | ||||||||||||||||||||||||
Net profit/(loss) for the period
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- | - | -32.2 | -78.5 | - | - | -149.3 | -289.3 |
Announcement no. 35 / 7 November 2012
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Third quarter report 2012
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Page 3 of 25
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Announcement no. 35 / 7 November 2012
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Third quarter report 2012
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Page 4 of 25
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2012
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2013
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2014
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2012
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2013
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2014
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Owned days
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||||||||||||||||||||||||
LR2
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799 | 2,824 | 2,904 | |||||||||||||||||||||
LR1
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637 | 2,509 | 2,509 | |||||||||||||||||||||
MR
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3,427 | 14,037 | 14,075 | |||||||||||||||||||||
Handysize
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1,001 | 3,975 | 3,944 | |||||||||||||||||||||
Tanker Division
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5,864 | 23,344 | 23,432 | |||||||||||||||||||||
Panamax
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180 | 726 | 694 | |||||||||||||||||||||
Handymax
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- | - | - | |||||||||||||||||||||
Bulk Division
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180 | 726 | 694 | |||||||||||||||||||||
Total
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6,044 | 24,070 | 24,126 | |||||||||||||||||||||
T/C-in days at fixed rate
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T/C-in costs, USD/day
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|||||||||||||||||||||||
LR2
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- | - | - | - | - | - | ||||||||||||||||||
LR1
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785 | 75 | - | 17,914 | 11,000 | - | ||||||||||||||||||
MR
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242 | 1,049 | 726 | 13,188 | 14,046 | 15,145 | ||||||||||||||||||
Handysize
|
- | - | - | - | - | - | ||||||||||||||||||
Tanker Division
|
1,027 | 1,124 | 726 | 16,800 | 13,843 | 15,145 | ||||||||||||||||||
Panamax
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573 | 1,964 | 1,817 | 14,216 | 12,880 | 12,386 | ||||||||||||||||||
Handymax
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339 | - | - | 12,509 | - | - | ||||||||||||||||||
Bulk Division
|
912 | 1,964 | 1,817 | 13,581 | 12,880 | 12,386 | ||||||||||||||||||
Total
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1,939 | 3,088 | 2,543 | 15,286 | 13,230 | 13,174 | ||||||||||||||||||
T/C-in days at floating rate
|
||||||||||||||||||||||||
LR2
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182 | 726 | 725 | |||||||||||||||||||||
LR1
|
- | - | - | |||||||||||||||||||||
MR
|
91 | 363 | 363 | |||||||||||||||||||||
Handysize
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- | - | - | |||||||||||||||||||||
Tanker Division
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273 | 1,089 | 1,088 | |||||||||||||||||||||
Panamax
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91 | 726 | 411 | |||||||||||||||||||||
Handymax
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147 | 363 | 363 | |||||||||||||||||||||
Bulk Division
|
238 | 1,089 | 774 | |||||||||||||||||||||
Total
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511 | 2,178 | 1,862 | |||||||||||||||||||||
Total physical days
|
Covered days
|
|||||||||||||||||||||||
LR2
|
981 | 3,550 | 3,629 | 176 | 391 | 337 | ||||||||||||||||||
LR1
|
1,422 | 2,584 | 2,509 | 236 | 365 | 175 | ||||||||||||||||||
MR
|
3,760 | 15,449 | 15,164 | 643 | 743 | - | ||||||||||||||||||
Handysize
|
1,001 | 3,975 | 3,944 | 30 | - | - | ||||||||||||||||||
Tanker Division
|
7,164 | 25,557 | 25,246 | 1,076 | 1,499 | 512 | ||||||||||||||||||
Panamax
|
844 | 3,416 | 2,922 | 1,007 | 990 | 25 | ||||||||||||||||||
Handymax
|
486 | 363 | 363 | 365 | 1,167 | 869 | ||||||||||||||||||
Bulk Division
|
1,330 | 3,779 | 3,285 | 1,372 | 2,157 | 895 | ||||||||||||||||||
Total
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8,494 | 29,336 | 28,531 | 2,448 | 3,656 | 1,407 | ||||||||||||||||||
Covered, %
|
Coverage rates, USD/day
|
|||||||||||||||||||||||
LR2
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18 | % | 11 | % | 9 | % | 15,687 | 16,650 | 16,617 | |||||||||||||||
LR1
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17 | % | 14 | % | 7 | % | 14,228 | 15,666 | 15,666 | |||||||||||||||
MR
|
17 | % | 5 | % | 0 | % | 13,759 | 13,932 | - | |||||||||||||||
Handysize
|
3 | % | 0 | % | 0 | % | 5,378 | - | - | |||||||||||||||
Tanker Division
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15 | % | 6 | % | 2 | % | 13,944 | 15,063 | 16,292 | |||||||||||||||
Panamax
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119 | % | 29 | % | 1 | % | 11,387 | 15,380 | 20,436 | |||||||||||||||
Handymax
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75 | % | 321 | % | 240 | % | 8,781 | 13,978 | 16,725 | |||||||||||||||
Bulk Division
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103 | % | 57 | % | 27 | % | 10,694 | 14,621 | 16,831 | |||||||||||||||
Total
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29 | % | 12 | % | 5 | % | 12,122 | 14,803 | 16,634 |
Contracts not included above
|
0.0
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|||||
Contracts included above
|
6.5
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Announcement no. 35 / 7 November 2012
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Third quarter report 2012
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Page 5 of 25
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Tanker Division
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Q3 11 | Q4 11 | Q1 12 | Q2 12 | Q3 12 |
Change
|
12 month
|
|||||||||||||||||||||
Q3 11 |
avg.
|
|||||||||||||||||||||||||||
- Q3 12 | ||||||||||||||||||||||||||||
LR2 (Aframax, 90-110,000 DWT)
|
||||||||||||||||||||||||||||
Available earning days
|
1,158 | 1,092 | 899 | 854 | 989 | -15 | % | |||||||||||||||||||||
Spot rates1)
|
10,836 | 11,959 | 10,814 | 10,206 | 13,581 | 25 | % | |||||||||||||||||||||
TCE per earning day2)
|
12,423 | 15,647 | 7,865 | 14,157 | 11,082 | -11 | % | 12,313 | ||||||||||||||||||||
Operating days
|
1,196 | 1,121 | 1,001 | 1,001 | 1,012 | -15 | % | |||||||||||||||||||||
Operating expenses per operating day3)
|
6,721 | 6,133 | 5,976 | 7,001 | 6,800 | 1 | % | 6,468 | ||||||||||||||||||||
LR1 (Panamax 75-85,000 DWT)
|
||||||||||||||||||||||||||||
Available earning days
|
2,208 | 2,081 | 2,076 | 1,879 | 1,716 | -22 | % | |||||||||||||||||||||
Spot rates1)
|
9,841 | 7,678 | 12,515 | 11,237 | 13,512 | 37 | % | |||||||||||||||||||||
TCE per earning day2)
|
9,467 | 9,020 | 12,977 | 11,747 | 12,723 | 34 | % | 11,561 | ||||||||||||||||||||
Operating days
|
644 | 644 | 637 | 637 | 644 | 0 | % | |||||||||||||||||||||
Operating expenses per operating day3)
|
6,481 | 6,419 | 6,389 | 5,798 | 6,136 | -5 | % | 6,186 | ||||||||||||||||||||
MR (45,000 DWT)
|
||||||||||||||||||||||||||||
Available earning days
|
4,511 | 4,477 | 4,681 | 4,362 | 4,176 | -7 | % | |||||||||||||||||||||
Spot rates1)
|
11,749 | 14,080 | 14,363 | 11,510 | 10,612 | -10 | % | |||||||||||||||||||||
TCE per earning day2)
|
12,910 | 13,335 | 14,082 | 11,418 | 9,843 | -24 | % | 12,236 | ||||||||||||||||||||
Operating days
|
3,496 | 3,496 | 3,557 | 3,549 | 3,588 | 3 | % | |||||||||||||||||||||
Operating expenses per operating day3)
|
6,732 | 5,929 | 6,743 | 6,756 | 6,825 | 1 | % | 6,566 | ||||||||||||||||||||
Handysize (35,000 DWT)
|
||||||||||||||||||||||||||||
Available earning days
|
992 | 978 | 989 | 981 | 1,007 | 1 | % | |||||||||||||||||||||
Spot rates1)
|
10,582 | 9,483 | 12,823 | 10,939 | 11,263 | 6 | % | |||||||||||||||||||||
TCE per earning day2)
|
12,020 | 9,809 | 13,122 | 12,189 | 10,873 | -10 | % | 11,498 | ||||||||||||||||||||
Operating days
|
1,012 | 1,012 | 1,001 | 1,001 | 1,012 | 0 | % | |||||||||||||||||||||
Operating expenses per operating day3)
|
5,436 | 6,919 | 5,577 | 5,686 | 6,165 | 13 | % | 6,089 |
Announcement no. 35 / 7 November 2012
|
Third quarter report 2012
|
Page 6 of 25
|
Bulk Division
|
Q3 11 | Q4 11 | Q1 12 | Q2 12 | Q3 12 |
Change
|
12 month
|
|||||||||||||||||||||
Q3 11 |
avg.
|
|||||||||||||||||||||||||||
- Q3 12 | ||||||||||||||||||||||||||||
Panamax (60-80,000 DWT)
|
||||||||||||||||||||||||||||
Available earning days
|
2.279 | 3.127 | 1.848 | 1.447 | 1.205 | -47 | % | |||||||||||||||||||||
TCE per earning day1)
|
12.140 | 14.357 | 9.670 | 9.647 | 7.793 | -36 | % | 11.291 | ||||||||||||||||||||
Operating days
|
184 | 184 | 182 | 182 | 184 | 0 | % | |||||||||||||||||||||
Operating expenses per operating day2)
|
5.126 | 3.896 | 3.934 | 5.130 | 4.212 | -18 | % | 4.292 | ||||||||||||||||||||
Handymax (40-55,000 DWT)
|
||||||||||||||||||||||||||||
Available earning days
|
1.152 | 1.361 | 642 | 260 | 757 | -34 | % | |||||||||||||||||||||
TCE per earning day1)
|
12.510 | 13.403 | 11.763 | 4.353 | 9.051 | -28 | % | 11.185 | ||||||||||||||||||||
Operating days
|
- | - | - | - | - | - | ||||||||||||||||||||||
Operating expenses per operating day2)
|
- | - | - | - | - | - | - |
Announcement no. 35 / 7 November 2012
|
Third quarter report 2012
|
Page 7 of 25
|
No. of vessels
|
Current fleet
|
New buildings and T/C-in deliveries
with a period of >=12 months
|
||||||||||||||||||||||
Q2 2012 |
Changes
|
Q3 2012 | 2012 | 2013 | 2014 | |||||||||||||||||||
Owned vessels
|
||||||||||||||||||||||||
LR2
|
9.0 | - | 9.0 | |||||||||||||||||||||
LR1
|
7.0 | - | 7.0 | |||||||||||||||||||||
MR
|
39.0 | - | 39.0 | |||||||||||||||||||||
Handysize
|
11.0 | - | 11.0 | |||||||||||||||||||||
Tanker Division
|
66.0 | - | 66.0 | - | - | - | ||||||||||||||||||
Panamax
|
2.0 | - | 2.0 | |||||||||||||||||||||
Handymax
|
- | - | ||||||||||||||||||||||
Bulk Division
|
2.0 | - | 2.0 | - | - | - | ||||||||||||||||||
Total
|
68.0 | - | 68.0 | - | - | - | ||||||||||||||||||
T/C-in vessels with contract period >= 12 months | ||||||||||||||||||||||||
LR2
|
2.0 | - | 2.0 | |||||||||||||||||||||
LR1
|
13.0 | -2.0 | 11.0 | |||||||||||||||||||||
MR
|
10.0 | -6.0 | 4.0 | |||||||||||||||||||||
Handysize
|
- | - | ||||||||||||||||||||||
Tanker Division
|
25.0 | -8.0 | 17.0 | - | - | - | ||||||||||||||||||
Panamax
|
9.0 | -2.0 | 7.0 | 1.0 | ||||||||||||||||||||
Handymax
|
2.0 | - | 2.0 | |||||||||||||||||||||
Bulk Division
|
11.0 | -2.0 | 9.0 | - | 1.0 | - | ||||||||||||||||||
Total
|
36.0 | -10.0 | 26.0 | - | 1.0 | - | ||||||||||||||||||
T/C-in vessels with contract period <12 months | ||||||||||||||||||||||||
LR2
|
||||||||||||||||||||||||
LR1
|
||||||||||||||||||||||||
MR
|
||||||||||||||||||||||||
Handysize
|
||||||||||||||||||||||||
Tanker Division
|
- | - | - | |||||||||||||||||||||
Panamax
|
3.0 | -2.0 | 1.0 | |||||||||||||||||||||
Handymax
|
2.0 | 5.0 | 7.0 | |||||||||||||||||||||
Bulk Division
|
5.0 | 3.0 | 8.0 | |||||||||||||||||||||
Total
|
5.0 | 3.0 | 8.0 | |||||||||||||||||||||
Post/commercial management
|
18.0 | 2.0 | 20.0 | |||||||||||||||||||||
Total fleet
|
127.0 | -5.0 | 122.0 |
Announcement no. 35 / 7 November 2012
|
Third quarter report 2012
|
Page 8 of 25
|
Accounting policies
|
|
The interim report for the period 1 January – 30 September 2012 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. The interim report has been prepared using the accounting policies as for the Annual Report for 2011. The accounting policies are described in more detail in the Annual Report for 2011. As from 1 January 2012, TORM has implemented the amendment to IFRS 7 regarding disclosures about transfer of financial assets. The amended standard has not affected the recognition and measurement in TORM's interim report for the first nine months of 2012. The interim report of the third quarter of 2012 is unaudited, in line with the normal practice.
|
|
Income statement
|
|
The gross profit for the third quarter of 2012 was USD 3 million, compared to USD 2 million for the corresponding period in 2011.
|
|
The third quarter of 2012 was not impacted by sale of vessels, as also was the case for the third quarter of 2011. Administrative costs in the third quarter of 2012 were USD 15 million, compared to USD 17 million in the third quarter of 2011, as a result of the Company's cost program.
|
|
The result before depreciation (EBITDA) for the third quarter of 2012 was a loss of USD 11 million, compared to a loss of USD 17 million for the corresponding period of 2011.
|
|
Depreciation in the third quarter of 2012 was USD 35 million, USD 1 million lower than in the third quarter of 2011. This decrease was due to fewer vessels.
|
|
The primary operating result for the third quarter of 2012 was a loss of USD 46 million, compared to a loss of USD 53 million in the same quarter of 2011.
|
|
The third quarter of 2012 was positively impacted by mark-to-market non-cash adjustments of USD 6 million in total: Positive USD 4 million in connection with FFA/bunker derivatives and a positive net effect from other financial derivatives amounting to USD 2 million. The third quarter of 2011 had negative mark-to-market non-cash adjustments of USD 5 million.
|
|
Financial expenses of USD 33 million include USD 15 million in restructuring costs – primarily fees to advisors to the Company's creditors and TORM.
|
|
The result after tax was a loss of USD 79 million in the third quarter of 2012, as against a loss of USD 70 million in the third quarter of 2011.
|
|
Assets
|
|
Total assets were down from USD 2,779 million as at 31 December 2011 to USD 2,507 million as at 30 September 2012. The book value of the fleet excluding financial lease vessels as of 30 September 2012 was USD 2,167 million. Based on broker valuations, TORM's fleet excluding financial lease vessels had a market value of USD 1,316 million as of 30 September 2012. TORM estimates the fleet's total long-term earning potential each quarter based on future discounted cash flows in accordance with IFRS requirements. The estimated value for the fleet as at 30 September 2012 supports the book value. During third quarter of 2012, it was decided to initiate wind down of the jointly controlled entity, FR8. The book value of TORM's 50% share in FR8 is USD 0 million.
|
Announcement no. 35 / 7 November 2012
|
Third quarter report 2012
|
Page 9 of 25
|
Debt
|
|
Net interest-bearing debt was USD 1,858 million as at 30 September 2012, compared to USD 1,852 million as at 30 June 2012. As at 30 September 2012, TORM was in breach of its financial covenants under the existing loan agreements. As at 30 September 2012, TORM did not have a standstill agreement with the bank group and therefore the Company no longer had the right to defer payments until such time as the final Restructuring Agreement had been entered into. On 5 November 2012 TORM finalized the technical completion of its restructuring after which the bank debt will be reclassified as non-current liabilities.
|
|
Equity
|
|
Equity declined in the third quarter of 2012 from USD 435 million as at 30 June 2012 to USD 358 million as at 30 September 2012 primarily due to the loss during the period. Equity as a percentage of total assets was 14% as at 30 September 2012, compared to 23% as at 31 December 2011.
|
|
TORM held 3,230,432 treasury shares as at 30 September 2012, equivalent to 4.4% of the Company's share capital. This is the same level as of 30 June 2012. Following the restructuring on 5 November 2012, TORM today holds 6,970,272 treasury shares, equivalent to 1.0% of the Company's share capital.
|
|
Liquidity
|
|
TORM had cash of USD 13 million at the end of the third quarter of 2012 and no credit lines available. TORM has no order book and therefore no CAPEX related hereto. As at 6 November 2012 and following the restructuring, the cash and available credit lines totaled USD 65 million as planned.
|
Announcement no. 35 / 7 November 2012
|
Third quarter report 2012
|
Page 10 of 25
|
Announcement no. 35 / 7 November 2012
|
Third quarter report 2012
|
Page 11 of 25
|
Executive Management
|
Board of Directors
|
|
Jacob Meldgaard, CEO
Roland M. Andersen, CFO
|
Niels Erik Nielsen, Chairman
Christian Frigast, Deputy Chairman
Jesper Jarlbæk
Kari Millum Gardarnar
Rasmus Johannes Hoffmann
|
Announcement no. 35 / 7 November 2012
|
Third quarter report 2012
|
Page 12 of 25
|
Million USD
|
Q3 2012 | Q3 2011 | Q1-Q3 2012 | Q1-Q3 2011 | 2011 | |||||||||||||||
Revenue
|
256.0 | 331.8 | 838.9 | 937.9 | 1,305.2 | |||||||||||||||
Port expenses, bunkers and commissions
|
-154.2 | -182.8 | -488.0 | -472.5 | -675.0 | |||||||||||||||
Freight and bunkers derivatives
|
8.0 | -0.9 | 13.5 | 9.0 | 14.1 | |||||||||||||||
Time charter equivalent earnings
|
109.8 | 148.1 | 364.4 | 474.4 | 644.3 | |||||||||||||||
Charter hire
|
-64.4 | -103.5 | -209.4 | -279.7 | -398.3 | |||||||||||||||
Operating expenses
|
-42.3 | -42.3 | -124.0 | -125.5 | -165.0 | |||||||||||||||
Gross profit (Net earnings from shipping activities)
|
3.1 | 2.3 | 31.0 | 69.2 | 81.0 | |||||||||||||||
Profit from sale of vessels
|
0.0 | 0.0 | -15.9 | 1.4 | -52.6 | |||||||||||||||
Administrative expenses
|
-14.9 | -16.8 | -48.0 | -51.6 | -71.2 | |||||||||||||||
Other operating income
|
0.4 | 0.4 | 1.3 | 2.9 | 3.2 | |||||||||||||||
Share of results of jointly controlled entities
|
0.2 | -2.9 | -9.6 | -5.3 | -4.2 | |||||||||||||||
EBITDA
|
-11.2 | -17.0 | -41.2 | 16.6 | -43.8 | |||||||||||||||
Impairment losses on jointly controlled entities
|
0.0 | 0.0 | -41.5 | 0.0 | -13.0 | |||||||||||||||
Impairment losses on tangible and intangible assets
|
0.0 | 0.0 | 0.0 | 0.0 | -187.0 | |||||||||||||||
Amortizations and depreciation
|
-35.2 | -36.1 | -103.3 | -109.2 | -144.8 | |||||||||||||||
Operating profit (EBIT)
|
-46.4 | -53.1 | -186.0 | -92.6 | -388.6 | |||||||||||||||
Financial income
|
1.3 | -0.5 | 8.1 | 1.5 | 9.9 | |||||||||||||||
Financial expenses
|
-32.5 | -16.5 | -110.3 | -47.6 | -72.7 | |||||||||||||||
Profit/(loss) before tax
|
-77.6 | -70.1 | -288.2 | 138.7 | -451.4 | |||||||||||||||
Tax
|
-0.9 | -0.3 | -1.1 | -1.3 | -1.6 | |||||||||||||||
Net profit/(loss) for the period
|
-78.5 | -70.4 | -289.3 | -140.0 | -453.0 | |||||||||||||||
Earnings/(loss) per share, EPS
|
||||||||||||||||||||
Earnings/(loss) per share, EPS (USD)
|
-1.1 | -1.0 | -4.2 | -2.0 | -6.5 | |||||||||||||||
Earnings/(loss) per share, EPS (DKK)*
|
-6.7 | -5.3 | -24.1 | 10.7 | -34.9 | |||||||||||||||
Diluted earnings/(loss) per share, (USD)
|
-1.1 | -1.0 | -4.2 | -2.0 | -6.5 | |||||||||||||||
Diluted earnings/(loss) per share, (DKK)*
|
-6.7 | -5.3 | -24.1 | -10.7 | -34.9 |
Announcement no. 35 / 7 November 2012
|
Third quarter report 2012
|
Page 13 of 25
|
Million USD
|
Q3 12 | Q2 12 | Q1 12 | Q4 11 | Q3 11 | |||||||||||||||
Revenue
|
256.0 | 272.3 | 310.6 | 367.3 | 331.8 | |||||||||||||||
Port expenses, bunkers and commissions
|
-154.2 | -161.6 | -172.2 | -202.5 | -182.8 | |||||||||||||||
Freight and bunkers derivatives
|
8.0 | -8.1 | 13.6 | 5.1 | -0.9 | |||||||||||||||
Time charter equivalent earnings
|
109.8 | 102.6 | 152.0 | 169.9 | 148.1 | |||||||||||||||
Charter hire
|
-64.4 | -60.6 | -84.4 | -118.6 | -103.5 | |||||||||||||||
Operating expenses
|
-42.3 | -41.4 | -40.3 | -39.5 | -42.3 | |||||||||||||||
Gross profit (Net earnings from shipping activities)
|
3.1 | 0.6 | 27.3 | 11.8 | 2.3 | |||||||||||||||
Profit from sale of vessels
|
0.0 | 0.0 | -15.9 | -54.0 | 0.0 | |||||||||||||||
Administrative expenses
|
-14.9 | -16.5 | -16.6 | -19.6 | -16.8 | |||||||||||||||
Other operating income
|
0.4 | 0.4 | 0.5 | 0.3 | 0.4 | |||||||||||||||
Share of results of jointly controlled entities
|
0.2 | -7.4 | -2.4 | 1.1 | -2.9 | |||||||||||||||
EBITDA
|
-11.2 | -22.9 | -7.1 | -60.4 | -17.0 | |||||||||||||||
Impairment losses on jointly controlled entities
|
0.0 | -41.5 | 0.0 | -13.0 | 0.0 | |||||||||||||||
Impairment losses on tangible and intangible assets
|
0.0 | 0.0 | 0.0 | -187.0 | 0.0 | |||||||||||||||
Amortizations and depreciation
|
-35.2 | -34.1 | -34.0 | -35.6 | -36.1 | |||||||||||||||
Operating profit (EBIT)
|
-46.4 | -98.5 | -41.1 | -296.0 | -53.1 | |||||||||||||||
Financial income
|
1.3 | 3.2 | 3.6 | 8.4 | -0.5 | |||||||||||||||
Financial expenses
|
-32.5 | -36.8 | -41.0 | -25.1 | -16.5 | |||||||||||||||
Profit/(loss) before tax
|
-77.6 | -132.1 | -78.5 | -312.7 | -70.1 | |||||||||||||||
Tax
|
-0.9 | 0.0 | -0.2 | -0.3 | -0.3 | |||||||||||||||
Net profit/(loss) for the period
|
-78.5 | -132.1 | -78.7 | -313.0 | -70.4 | |||||||||||||||
Earnings/(loss) per share, EPS
|
||||||||||||||||||||
Earnings/(loss) per share, EPS (USD)
|
-1.1 | -1.9 | -1.1 | -4.5 | -1.0 | |||||||||||||||
Diluted earnings/(loss) per share, (USD)
|
-1.1 | -1.9 | -1.1 | -4.5 | -1.0 |
Announcement no. 35 / 7 November 2012
|
Third quarter report 2012
|
Page 14 of 25
|
Million USD
|
Q3 2012 | Q3 2011 | Q1-Q3 2012 | Q1-Q3 2011 | 2011 | |||||||||||||||
Net profit/(loss) for the period
|
-78.5 | -70.4 | -289.3 | -140.0 | -453.0 | |||||||||||||||
Other comprehensive income:
|
||||||||||||||||||||
Exchange rate adjustment arising on translation of entities using a measurement currency different from USD
|
0.1 | -0.3 | 0.4 | -0.3 | -0.4 | |||||||||||||||
Fair value adjustment on hedging instruments
|
-2.5 | -18.0 | -11.6 | -28.1 | -29.7 | |||||||||||||||
Value adjustment on hedging instruments transferred to income statement
|
4.2 | 0.0 | 14.1 | 0.8 | 1.7 | |||||||||||||||
Fair value adjustment on available for sale investments
|
0.2 | 9.1 | -0.1 | 9.2 | 8.7 | |||||||||||||||
Other comprehensive income after tax
|
2.0 | -9.2 | 2.8 | -18.4 | -19.7 | |||||||||||||||
Total comprehensive income
|
-76.5 | -79.6 | -286.5 | 158.4 | -472.7 |
Announcement no. 35 / 7 November 2012
|
Third quarter report 2012
|
Page 15 of 25
|
Million USD
|
30 September
2012
|
30 September
2011
|
31 December
2011
|
|||||||||
NON-CURRENT ASSETS
|
||||||||||||
Intangible assets
|
||||||||||||
Goodwill
|
0.0 | 89.2 | 0.0 | |||||||||
Other intangible assets
|
1.8 | 1.9 | 1.9 | |||||||||
Total intangible assets
|
1.8 | 91.1 | 1.9 | |||||||||
Tangible fixed assets
|
||||||||||||
Land and buildings
|
1.6 | 2.0 | 2.0 | |||||||||
Vessels and capitalised dry-docking
|
2,233.6 | 2,453.0 | 2,258.6 | |||||||||
Prepayments on vessels
|
0.0 | 138.1 | 69.2 | |||||||||
Other plant and operating equipment
|
6.9 | 8.3 | 8.1 | |||||||||
Total tangible fixed assets
|
2,242.1 | 2,601.4 | 2,337.9 | |||||||||
Financial assets
|
||||||||||||
Investment in jointly controlled entities
|
0.9 | 66.4 | 50.3 | |||||||||
Loans to jointly controlled entities
|
0.0 | 8.7 | 8.2 | |||||||||
Other investments
|
12.1 | 12.2 | 11.6 | |||||||||
Total financial assets
|
13.0 | 87.3 | 70.1 | |||||||||
TOTAL NON-CURRENT ASSETS
|
2,256.9 | 2,779.8 | 2,409.9 | |||||||||
CURRENT ASSETS
|
||||||||||||
Bunkers
|
66.2 | 62.2 | 84.6 | |||||||||
Freight receivables
|
122.9 | 132.8 | 140.2 | |||||||||
Other receivables
|
27.3 | 17.6 | 26.0 | |||||||||
Other financial assets
|
0.0 | 0.9 | 0.0 | |||||||||
Prepayments
|
21.6 | 29.8 | 11.8 | |||||||||
Cash and cash equivalents
|
12.5 | 95.8 | 85.5 | |||||||||
250.5 | 339.1 | 348.1 | ||||||||||
Non-current assets held for sale
|
0.0 | 0.0 | 21.2 | |||||||||
TOTAL CURRENT ASSETS
|
250.5 | 339.1 | 369.3 | |||||||||
TOTAL ASSETS
|
2,507.4 | 3,118.9 | 2,779.2 |
Announcement no. 35 / 7 November 2012
|
Third quarter report 2012
|
Page 16 of 25
|
Million USD
|
30 September
2012
|
30 September
2011
|
31 December
2011
|
||||||||
EQUITY
|
|||||||||||
Common shares
|
61.1 | 61.1 | 61.1 | ||||||||
Treasury shares
|
-17.3 | -17.3 | -17.3 | ||||||||
Revaluation reserves
|
6.1 | 6.7 | 6.2 | ||||||||
Retained profit
|
331.6 | 932.7 | 620.0 | ||||||||
Proposed dividends
|
0.0 | 0.0 | 0.0 | ||||||||
Hedging reserves
|
-27.4 | -29.1 | -29.8 | ||||||||
Translation reserves
|
4.2 | 3.8 | 3.6 | ||||||||
TOTAL EQUITY
|
358.3 | 957.9 | 643.8 | ||||||||
LIABILITIES
|
|||||||||||
Non-current liabilities
|
|||||||||||
Deferred tax liability
|
53.3 | 53.9 | 53.7 | ||||||||
Mortgage debt and bank loans
|
0.0 | 1,664.5 | 0.0 | ||||||||
Finance lease liabilities
|
27.4 | 74.4 | 29.4 | ||||||||
Deferred income
|
5.5 | 0.0 | 6.4 | ||||||||
TOTAL NON-CURRENT LIABILITIES
|
86.2 | 1,792.8 | 89.5 | ||||||||
Current liabilities
|
|||||||||||
Mortgage debt and bank loans
|
1,793.7 | 189.6 | 1,794.6 | ||||||||
Finance lease liabilities
|
49.6 | 3.4 | 48.3 | ||||||||
Trade payables
|
111.1 | 74.8 | 115.6 | ||||||||
Current tax liabilities
|
1.0 | 1.1 | 1.2 | ||||||||
Other liabilities
|
106.3 | 90.9 | 85.0 | ||||||||
Acquired liabilities related to options on vessels
|
0.0 | 0.5 | 0.0 | ||||||||
Deferred income
|
1.2 | 7.9 | 1.2 | ||||||||
TOTAL CURRENT LIABILITIES
|
2,062.9 | 368.2 | 2,045.9 | ||||||||
TOTAL LIABILITIES
|
2,149.1 | 2,161.0 | 2,135.4 | ||||||||
TOTAL EQUITY AND LIABILITIES
|
2,507.4 | 3,118.9 | 2,779.2 |
Announcement no. 35 / 7 November 2012
|
Third quarter report 2012
|
Page 17 of 25
|
Million USD
|
Common
shares
|
Treasury shares
|
Retained
profit
|
Proposed
dividends
|
Revaluation reserves
|
Hedging
reserves
|
Translation reserves
|
Total
|
|||||||
Equity at 1 January 2012
|
61.1 | -17.3 | 620.0 | 0.0 | 6.2 | -29.8 | 3.6 | 643.8 | |||||||
Comprehensive income for the year:
|
|||||||||||||||
Net profit/(loss) for the year
|
- | - | -289.3 | - | - | - | - | -289.3 | |||||||
Other comprehensive income for the year
|
- | - | - | - | -0.1 | 2.5 | 0.4 | 2.8 | |||||||
Total comprehensive income for the year
|
- | - | -289.3 | - | -0.1 | 2.5 | 0.4 | -286.5 | |||||||
Disposal treasury shares, cost
|
- | - | - | - | - | - | - | 0.0 | |||||||
Loss from disposal of treasury shares
|
- | - | - | - | - | - | - | 0.0 | |||||||
Share-based compensation
|
- | - | 1.0 | - | - | - | - | 1.0 | |||||||
Total changes in equity Q1-Q3 2012
|
0.0 | 0.0 | -288.3 | 0.0 | -0.1 | 2.5 | 0.4 | -285.5 | |||||||
Equity at 30 September 2012
|
61.1 | -17.3 | 331.7 | 0.0 | 6.1 | -27.3 | 4.0 | 358.3 |
Common
shares
|
Treasury shares
|
Retained
profit
|
Proposed
dividends
|
Revaluation reserves
|
Hedging
reserves
|
Translation reserves
|
Total
|
|||||||||
Million USD
|
||||||||||||||||
Equity at 1 January 2011
|
61.1 | -17.9 | 1,072.3 | 0.0 | -2.5 | -1.8 | 4.1 | 1,115.3 | ||||||||
Comprehensive income for the year:
|
||||||||||||||||
Net profit/(loss) for the year
|
- | - | -140.0 | - | - | - | - | -140.0 | ||||||||
Other comprehensive income for the year
|
- | - | - | - | 9.2 | -27.3 | -0.3 | -18.4 | ||||||||
Total comprehensive income for the year
|
- | - | -140.0 | - | 9.2 | -27.3 | -0.3 | -158.4 | ||||||||
Disposal treasury shares, cost
|
- | 0.6 | - | - | - | - | - | 0.6 | ||||||||
Loss from disposal of treasury shares
|
- | - | -0.6 | - | - | - | - | -0.6 | ||||||||
Share-based compensation
|
- | - | 1.0 | - | - | - | - | 1.0 | ||||||||
Total changes in equity Q1-Q3 2011
|
0.0 | 0.6 | -139.6 | 0.0 | 9.2 | -27.3 | -0.3 | -157.4 | ||||||||
Equity at 30 September 2011
|
61.1 | -17.3 | 932.7 | 0.0 | 6.7 | -29.1 | 3.8 | 957.9 |
Announcement no. 35 / 7 November 2012
|
Third quarter report 2012
|
Page 18 of 25
|
Q1-Q3 | Q1-Q3 | ||||||||||||||
Million USD
|
Q3 2012 | Q3 2011 | 2012 | 2011 | 2011 | ||||||||||
Cash flow from operating activities
|
|||||||||||||||
Operating profit
|
-46.4 | -53.1 | -186.0 | -92.6 | -388.6 | ||||||||||
Adjustments:
|
|||||||||||||||
Reversal of profit/(loss) from sale of vessels
|
0.0 | 0.0 | 15.9 | -1.4 | 52.6 | ||||||||||
Reversal of amortizations and depreciation
|
35.2 | 36.1 | 103.3 | 109.2 | 144.8 | ||||||||||
Reversal of impairment of jointly controlled entities
|
0.0 | 0.0 | 41.5 | 0.0 | 13.0 | ||||||||||
Reversal of impairment of tangible and intangible assets
|
0.0 | 0.0 | 0.0 | 0.0 | 187.0 | ||||||||||
Reversal of share of results of jointly controlled entities
|
-0.2 | 2.9 | 9.6 | 5.3 | 4.2 | ||||||||||
Reversal of other non-cash movements
|
-4.0 | 5.7 | -2.3 | -6.3 | -6.8 | ||||||||||
Dividends received
|
0.0 | 0.0 | 0.4 | 0.0 | 0.0 | ||||||||||
Dividends received from jointly controlled entities
|
0.0 | 0.2 | 0.0 | 1.2 | 1.4 | ||||||||||
Interest received and exchange rate gains
|
0.1 | -1.3 | 0.1 | 5.2 | 5.0 | ||||||||||
Interest paid and exchange rate losses
|
-0.8 | -13.8 | -21.7 | -47.5 | -67.0 | ||||||||||
Advisor fees related to financing and restructuring plan
|
-15.4 | 0.0 | -55.4 | 0.0 | 0.0 | ||||||||||
Income taxes paid/repaid
|
-0.2 | -1.1 | -0.7 | -2.3 | -2.7 | ||||||||||
Change in bunkers, accounts receivables and payables
|
37.3 | 3.8 | 24.8 | -32.7 | -17.7 | ||||||||||
Net cash flow from operating activities
|
5.6 | -20.6 | -70.5 | -61.9 | -74.8 | ||||||||||
Cash flow from investing activities
|
|||||||||||||||
Investment in tangible fixed assets
|
-8.0 | -4.4 | -56.5 | -106.8 | -118.5 | ||||||||||
Investment in equity interests and securities
|
0.0 | -0.1 | 0.0 | -0.1 | 0.0 | ||||||||||
Loans to jointly controlled entities
|
0.0 | 0.5 | 8.2 | 1.6 | 2.1 | ||||||||||
Sale of equity interests and securities
|
0.1 | 0.0 | 1.9 | 0.0 | 0.0 | ||||||||||
Sale of non-current assets
|
0.0 | 14.4 | 49.6 | 209.1 | 284.5 | ||||||||||
Net cash flow from investing activities
|
-7.9 | 10.4 | 3.2 | 103.8 | 168.1 | ||||||||||
Cash flow from financing activities
|
|||||||||||||||
Borrow ing, mortgage debt
|
0.0 | 0.0 | 22.5 | 87.0 | 87.0 | ||||||||||
Borrow ing, finance lease liabilities
|
0.0 | 0.0 | 0.0 | 46.8 | 46.8 | ||||||||||
Repayment/redemption, mortgage debt
|
0.0 | -38.5 | -26.4 | -194.7 | -254.1 | ||||||||||
Repayment/redemption, finance lease liabilities
|
-1.9 | -2.6 | -1.8 | -5.2 | -7.5 | ||||||||||
Net cash flow from financing activities
|
-1.9 | -41.1 | -5.7 | -66.1 | -127.8 | ||||||||||
Net cash flow from operating, investing and financing activities
|
-4.2 | -51.3 | -73.0 | -24.2 | -34.5 | ||||||||||
Cash and cash equivalents, beginning balance
|
16.7 | 147.1 | 85.5 | 120.0 | 120.0 | ||||||||||
Cash and cash equivalents, ending balance
|
12.5 | 95.8 | 12.5 | 95.8 | 85.5 |
Announcement no. 35 / 7 November 2012
|
Third quarter report 2012
|
Page 19 of 25
|
Million USD
|
Q3 12 | Q2 12 | Q1 12 | Q4 11 | Q3 11 | ||||||||||
Cash flow from operating activities
|
|||||||||||||||
Operating profit
|
-46.4 | -98.5 | -41.1 | -296.0 | -53.1 | ||||||||||
Adjustments:
|
|||||||||||||||
Reversal of profit/(loss) from sale of vessels
|
0.0 | 0.0 | 15.9 | 54.0 | 0.0 | ||||||||||
Reversal of amortizations and depreciation
|
35.2 | 34.1 | 34.0 | 35.6 | 36.1 | ||||||||||
Reversal of impairment of jointly controlled entities
|
0.0 | 41.5 | 0.0 | 13.0 | 0.0 | ||||||||||
Reversal of impairment of tangible and intangible assets
|
0.0 | 0.0 | 0.0 | 187.0 | 0.0 | ||||||||||
Reversal of share of results of jointly controlled entities
|
-0.2 | 7.4 | 2.4 | -1.1 | 2.9 | ||||||||||
Reversal of other non-cash movements
|
-4.0 | 11.2 | -9.5 | -0.5 | 5.7 | ||||||||||
Dividends received
|
0.0 | 0.4 | 0.0 | 0.0 | 0.0 | ||||||||||
Dividends received from jointly controlled entities
|
0.0 | 0.0 | 0.0 | 0.2 | 0.2 | ||||||||||
Interest received and exchange rate gains
|
0.1 | -0.2 | 0.2 | -0.2 | -1.3 | ||||||||||
Interest paid and exchange rate losses
|
-0.8 | -2.9 | -18.0 | -19.5 | -13.8 | ||||||||||
Advisor fees related to financing and restructuring plan
|
-15.4 | -18.0 | -22.0 | 0.0 | 0.0 | ||||||||||
Income taxes paid/repaid
|
-0.2 | 0.0 | -0.5 | -0.4 | -1.1 | ||||||||||
Change in bunkers, accounts receivables and payables
|
37.3 | 5.5 | -18.0 | 14.9 | 3.8 | ||||||||||
Net cash flow from operating activities
|
5.6 | -19.5 | -56.6 | -13.0 | -20.6 | ||||||||||
Cash flow from investing activities
|
|||||||||||||||
Investment in tangible fixed assets
|
-8.0 | -4.4 | -44.1 | -11.6 | -4.4 | ||||||||||
Investment in equity interests and securities
|
0.0 | 0.0 | 0.0 | 0.1 | -0.1 | ||||||||||
Loans to jointly controlled entities
|
0.0 | 8.2 | 0.0 | 0.5 | 0.5 | ||||||||||
Sale of equity interests and securities
|
0.1 | 1.8 | 0.0 | 0.0 | 0.0 | ||||||||||
Sale of non-current assets
|
0.0 | 0.3 | 49.3 | 75.4 | 14.4 | ||||||||||
Net cash flow from investing activities
|
-7.9 | 5.9 | 5.2 | 64.4 | 10.4 | ||||||||||
Cash flow from financing activities
|
|||||||||||||||
Borrowing, mortgage debt
|
0.0 | 0.0 | 22.5 | 0.0 | 0.0 | ||||||||||
Borrowing, finance lease liabilities
|
0.0 | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||||
Repayment/redemption, mortgage debt
|
0.0 | 0.0 | -26.4 | -59.4 | -38.5 | ||||||||||
Repayment/redemption, finance lease liabilities
|
-1.9 | 0.9 | -0.8 | -2.3 | -2.6 | ||||||||||
Net cash flow from financing activities
|
-1.9 | 0.9 | -4.7 | -61.7 | -41.1 | ||||||||||
Net cash flow from operating, investing and financing activities
|
-4.2 | -12.7 | -56.1 | -10.3 | -51.3 | ||||||||||
Cash and cash equivalents, beginning balance
|
16.7 | 29.4 | 85.5 | 95.8 | 147.1 | ||||||||||
Cash and cash equivalents, ending balance
|
12.5 | 16.7 | 29.4 | 85.5 | 95.8 |
Announcement no. 35 / 7 November 2012
|
Third quarter report 2012
|
Page 20 of 25
|
|
·
|
Assets within the Tanker Division were not further impaired as of 30 September 2012 as the value in use exceeds the carrying amount
|
|
·
|
Assets within the Bulk Division were not impaired as the fair value less costs to sell exceeded the carrying amount
|
|
·
|
To maintain the impairment of the investment in FR8 of USD 42 million to zero recognized in Q2 2012 in addition to the impairment losses recognized in previous years
|
|
·
|
LR2 USD/day 26,709 (30 September 2011: USD/day 27,811)
|
|
·
|
LR1 USD/day 22,493 (30 September 2011: USD/day 23,293)
|
|
·
|
MR USD/day 19,892 (30 September 2011: USD/day 20,227)
|
|
·
|
A decrease in the tanker freight rates of USD/day 500 would result in a further impairment of USD 135 million for the Tanker Division
|
|
·
|
An increase of the WACC of 1.0% would result in a further impairment of USD 181 million for the Tanker Division
|
|
·
|
An increase of the operating expenses of 5.0% would result in a further impairment of USD 90 million for the Tanker Division
|
Announcement no. 35 / 7 November 2012
|
Third quarter report 2012
|
Page 21 of 25
|
30 September
|
30 September
|
31 December
|
||||||
USD million
|
2012
|
2011
|
2011
|
|||||
Cost:
|
||||||||
Balance at 1 January
|
2,999.3 | 3,113.9 | 3,113.9 | |||||
Additions
|
13.4 | 10.7 | 20.7 | |||||
Disposals
|
-49.6 | -249.0 | -334.6 | |||||
Transferred to/from other items
|
102.9 | 199.3 | 199.3 | |||||
Transferred to non-current assets held for sale
|
0.0 | 0.0 | 0.0 | |||||
Balance
|
3,066.0 | 3,074.9 | 2,999.3 | |||||
Depreciation and impairments:
|
||||||||
Balance at 1 January
|
740.7 | 553.8 | 553.8 | |||||
Disposals
|
-8.7 | -54.3 | -67.8 | |||||
Depreciation for the year
|
100.4 | 106.1 | 140.6 | |||||
Impairment loss
|
0.0 | 0.0 | 97.8 | |||||
Transferred to/from other items
|
0.0 | 16.3 | 16.3 | |||||
Balance
|
832.4 | 621.9 | 740.7 | |||||
Carrying amount
|
2,233.6 | 2,453.0 | 2,258.6 |
30 September
|
30 September
|
31 December
|
|||||||
USD million
|
2012
|
2011
|
2011
|
||||||
Cost:
|
|||||||||
Balance at 1 January
|
69.2 | 243.3 | 243.3 | ||||||
Additions
|
41.7 | 94.1 | 94.8 | ||||||
Disposals
|
-8.0 | 0.0 | -7.8 | ||||||
Transferred to/from other items
|
-102.9 | -199.3 | -199.3 | ||||||
Transferred to non-current assets held for sale
|
0.0 | 0.0 | -61.8 | ||||||
Balance
|
0.0 | 138.1 | 69.2 | ||||||
Depreciation and impairments:
|
|||||||||
Balance at 1 January
|
0.0 | 16.3 | 16.3 | ||||||
Disposals
|
0.0 | 0.0 | 0.0 | ||||||
Depreciation for the year
|
0.0 | 0.0 | 0.0 | ||||||
Transferred to/from other items
|
0.0 | -16.3 | -16.3 | ||||||
Balance
|
0.0 | 0.0 | 0.0 | ||||||
Carrying amount
|
0.0 | 138.1 | 69.2 |
Announcement no. 35 / 7 November 2012
|
Third quarter report 2012
|
Page 22 of 25
|
30 September
|
30 September
|
31 December
|
|||||||||
Million USD
|
2012
|
2011
|
2011
|
||||||||
Mortgage debt and bank loans
|
|||||||||||
To be repaid as follows:
|
|||||||||||
Falling due within one year
|
1,793.7 | 189.6 | 1,794.6 | ||||||||
Falling due betw een one and two years
|
0.0 | 281.8 | 0.0 | ||||||||
Falling due betw een two and three years
|
0.0 | 154.1 | 0.0 | ||||||||
Falling due betw een three and four years
|
0.0 | 737.3 | 0.0 | ||||||||
Falling due betw een four and five years
|
0.0 | 111.2 | 0.0 | ||||||||
Falling due after five years
|
0.0 | 380.1 | 0.0 | ||||||||
Carrying amount
|
1,793.7 | 1,854.1 | 1,794.6 |
Million USD
|
Q1-Q3 2012
|
Q1-Q3 2011
|
|||||||||||||||
Tanker
Division
|
Bulk
Division
|
Not allocated
|
Total
|
Tanker
Division
|
Bulk Division
|
Not allocated
|
Total
|
||||||||||
Revenue
|
698.0 | 140.9 | 0.0 | 838.9 | 721.6 | 216.3 | 0.0 | 937.9 | |||||||||
Port expenses, bunkers and commissions
|
-404.6 | -83.4 | 0.0 | -488.0 | -377.0 | -95.5 | 0.0 | -472.5 | |||||||||
Freight and bunkers derivatives
|
-0.1 | 13.6 | 0.0 | 13.5 | 4.1 | 4.9 | 0.0 | 9.0 | |||||||||
Time charter equivalent earnings
|
293.3 | 71.1 | 0.0 | 364.4 | 348.7 | 125.7 | 0.0 | 474.4 | |||||||||
Charter hire
|
-134.3 | -75.1 | 0.0 | -209.4 | -148.1 | -131.6 | 0.0 | -279.7 | |||||||||
Operating expenses
|
-121.6 | -2.4 | 0.0 | -124.0 | -123.0 | -2.5 | 0.0 | -125.5 | |||||||||
Gross profit (Net earnings from shipping activities)
|
37.4 | -6.4 | 0.0 | 31.0 | 77.6 | -8.4 | 0.0 | 69.2 | |||||||||
Profit from sale of vessels
|
-15.9 | 0.0 | 0.0 | -15.9 | 1.8 | -0.4 | 0.0 | 1.4 | |||||||||
Administrative expenses
|
-42.7 | -5.3 | 0.0 | -48.0 | -42.2 | -9.4 | 0.0 | -51.6 | |||||||||
Other operating income
|
1.2 | 0.1 | 0.0 | 1.3 | 2.8 | 0.1 | 0.0 | 2.9 | |||||||||
Share of results of jointly controlled entities
|
-5.1 | 0.0 | -4.5 | -9.6 | 2.1 | 0.0 | -7.4 | -5.3 | |||||||||
EBITDA
|
-25.1 | -11.6 | -4.5 | -41.2 | 42.1 | -18.1 | -7.4 | 16.6 | |||||||||
Impairment losses on jointly controlled entities
|
0.0 | 0.0 | -41.5 | -41.5 | 0.0 | 0.0 | 0.0 | 0.0 | |||||||||
Amortizations and depreciation
|
-101.2 | -2.1 | 0.0 | -103.3 | -106.8 | -2.4 | 0.0 | -109.2 | |||||||||
Operating profit (EBIT)
|
-126.3 | -13.7 | -46.0 | -186.0 | -64.7 | -20.5 | -7.4 | -92.6 | |||||||||
Financial income
|
- | - | 8.1 | 8.1 | - | - | 1.5 | 1.5 | |||||||||
Financial expenses
|
- | - | -110.3 | -110.3 | - | - | -47.6 | -47.6 | |||||||||
Profit/(loss) before tax
|
- | - | -148.2 | -288.2 | - | - | -53.5 | -138.7 | |||||||||
Tax
|
- | - | -1.1 | -1.1 | - | - | -1.3 | -1.3 | |||||||||
Net profit/(loss) for the period
|
- | - | -149.3 | -289.3 | - | - | -54.8 | -140.0 | |||||||||
BALANCE SHEET
|
|||||||||||||||||
Total non-current assets
|
2,207.3 | 37.4 | 12.2 | 2,256.9 | 2,599.7 | 102.5 | 77.6 | 2,779.8 |
Announcement no. 35 / 7 November 2012
|
Third quarter report 2012
|
Page 23 of 25
|
|
·
|
Current shareholders retain 10.0% ownership, compared to 7.5% communicated earlier
|
|
·
|
USD 100 million in new working capital facility available until 30 September 2014
|
|
·
|
Maturities for the existing bank debt of USD 1.8 billion are extended until 31 December 2016 with new uniform covenants and terms and divided into three tranches
|
|
·
|
Deferral of installments on the entire bank debt until 30 September 2014 and reduced repayments until 31 December 2016
|
|
·
|
Interest on existing debt is only paid if TORM has sufficient liquidity until at least 30 June 2014 with potential extension to 30 September 2014
|
|
·
|
Mark-to-market savings estimated at approximately USD 270 million from amended time charter agreements
|
|
·
|
TORM expects to be cash flow positive even at the current rate levels
|
|
·
|
As part of the restructuring, certain specific option rights have been agreed that may result in a sales process for up to 22 vessels and repayment of the related debt.
|
Announcement no. 35 / 7 November 2012
|
Third quarter report 2012
|
Page 24 of 25
|
Announcement no. 35 / 7 November 2012
|
Third quarter report 2012
|
Page 25 of 25
|