well, annual report in line with expectations.
OPENHAGEN, Denmark, March 11, 2010 (GLOBE NEWSWIRE) -- "TORM posted a 2009 result in line with break-even expectations. High fleet utilisation yielding above market earnings during the year combined with substantial cost reductions contributed positively to earnings. In combination with a fully funded order book the Company has improved its competitive position further under difficult market conditions," TORM's CFO Roland M. Andersen says.
* Profit before tax and extraordinary impairment loss totalled USD 1
million which is in line with expectations. After an extraordinary
impairment write-down of USD 20 million relating to the Company's
50% stake in FR8, loss before tax amounted to USD 19 million.
* In 2009, the Tanker Division's earnings were negatively impacted by
the global recession and the resulting decline in global oil
consumption as well as the influx of a high number of new vessels.
Effective utilisation of TORM's fleet in the second half secured
earnings above the general market average.
* The sale and delivery of four bulk carriers affected profit before
tax positively by USD 33 million. The sale of two bulk carriers in
November 2009 at a total profit of USD 18 million will be taken to
income in the first quarter of 2010 upon delivery of the vessels.
* TORM's efficiency programme "Greater Efficiency Power" will in
2010, in line with projections, reduce vessel operating costs by
some 15% per vessel and administrative expenses by some 20%
compared to 2008. Annual cost savings will materialise in the range
of USD 50 million.
* In December 2009, TORM signed an agreement to finance six of the
Company's MR newbuildings in the amount of USD 167 million. The
vessels are planned for delivery between 2010 and 2012. After the
balance sheet date, TORM signed an additional agreement on 1
February 2010 to finance six other MR newbuildings in the amount of
USD 170 million. TORM's cash and unutilised loan facilities
hereafter amounted to USD 700 million.
* Remaining installments relating to TORM's order book as of 31
December 2009 amounted to USD 455 million, which is fully funded.
* As of 31 December 2009, equity amounted to USD 1,247 million
(DKK 6,472 million), corresponding to USD 18 per share (DKK 93)
excluding treasury shares, giving TORM an equity ratio of 38.6%.
* TORM calculates the long-term earnings potential of its fleet based
on discounted expected future cash flows in accordance with IFRS.
The calculated value of the fleet as of 31 December 2009 supports
book values.
* In 2009, TORM strengthened the Company's CSR strategy and defined
ambitious goals for reduction of CO2 emissions going forward. The
Company signed the UN Global Compact during 2009 and a global CSR
organisation has been established.
* As of 31 December 2009, 31% of the earning days in the Tanker
Division for 2010 had been covered at a rate of USD/day 18,989 and
71% of the earning days in the Bulk Division at a rate of USD/day
18,100.
* As of 1 April 2010, Jacob Meldgaard will take over the position as
CEO as previously announced.
* For the full year 2010, TORM forecasts a loss before tax of USD
15-60 million. The outlook is subject to considerable uncertainty.
* The Board of Directors recommends, subject to approval at the
Annual General Meeting, that no dividend will be distributed for
the year 2009.
