TORM Annual Report 2007 Announcement
March 14 2008 - 5:15AM
PR Newswire (US)
Announcement NO. 5 - 2008 COPENHAGEN, March 14
/PRNewswire-FirstCall/ -- At the end of 2007, TORM's Board of
Directors and Management developed a new strategy, "Greater Earning
Power 2.0", which was approved in January 2008. The strategy
focuses on continued growth over the next three years, which means
that the number of vessels in the fleet has to grow to 225-250
incl. pool vessels. The organization's resources should reflect
these ambitions, and therefore the next three years will focus on
the development of competences and growth as well as to operate the
Company in a socially responsible manner. - The profit before
restructuring costs and tax was USD 819 million, which is in line
with the latest forecast of USD 810-820 million excluding
restructuring costs of USD 15 million in connection with the
acquisition of OMI. No vessels have been sold in 2007. The Board of
Directors considers the profit to be highly satisfactory. - EBITDA
was USD 304 million (DKK 1,654 million). - Cash flow from operating
activities was USD 205 million (DKK 1,115 million). Cash flow
before financing activities was USD -159 million (DKK -865
million), while cash flow from investing activities was USD -364
million (DKK -1,980 million). - At 31 December 2007, equity
amounted to USD 1,081 million (DKK 5,491 million), corresponding to
USD 15.6 per share (DKK 79.3) excluding treasury shares. - The
market value of the Company's fleet as of 31 December 2007 exceeded
the book value by USD 1,578 million (2006: USD 1,061 million),
equalling USD 22.8 per share (DKK 115.8) excluding treasury shares.
To this should be added 44 chartered vessels. The company has
purchase options on 19 of these. - Return on Invested Capital
(RoIC) was 10.5% (2006: 19.6%), and Return on Equity (RoE) was
67.1% (2006: 21.5%). - In March 2007, TORM sold its stake in Norden
at a price of DKK 3,987 million (USD 713 million), and in September
half of the proceeds were distributed as an extraordinary dividend,
corresponding to DKK 27.5 per share (USD 5.1 per share). - In June
2007, TORM took over the US shipping company OMI in collaboration
with the Canadian shipping company Teekay. In connection with the
acquisition of OMI, TORM took over 26 product tankers incl. one new
building for delivery in 2009. Four of these were chartered
vessels. - At the end of 2007, the Company owned 62 vessels, 56 of
which were product tankers and six bulk carriers. In addition to
the vessels taken over from OMI, the Company took delivery of five
vessels during the year and contracted seven new buildings not yet
delivered. - By the end of 2007, TORM had 21 vessels on order and
had exercised one purchase option. Consequently, the Company's
fleet of owned and chartered vessels will by 2011 consist of 143
vessels incl. pool vessels based on existing contracts. - The
forecast profit before tax for 2008 excl. sale of vessels is USD
210-230 million. The profit before tax in 2007 was USD 161 million,
excluding a profit of USD 643 million from the sale of the Norden
shares. - The Board of Directors recommends, subject to approval by
the Annual General Meeting, that a dividend of DKK 4.50 (USD 0.89)
per share be paid, corresponding to a total dividend payment of DKK
327.6 million (USD 64.5 million) and equivalent to a return of 2.5%
in relation to the closing price of the Company's shares on the
last business day of 2007. Including the extraordinary dividend of
DKK 27.5 (USD 5.1) per share paid out in September 2007, the
accumulated dividend for 2007 was 55% of the net profit equivalent
to DKK 2,330 million (USD 434 million). Telephone conference A
telephone conference and webcast ( http://www.torm.com/) reviewing
the Annual Report 2007 will take place today, 14 March 2008, at
16:00 Copenhagen time. To participate, please call 10 minutes
before the call on tel.: +45-3271-4607 (from Europe) or
+1-334-323-6201 (from the USA). A replay of the conference will be
available from TORM's website. Contact A/S Dampskibsselskabet TORM
Telephone +45-39-17-92-00 Klaus Kjaerulff, CEO Tuborg Havnevej 18
DK-2900 Hellerup Denmark About TORM TORM is one of the world's
leading carriers of refined oil products as well as being a
significant participant in the dry bulk market. The Company
operates a combined fleet of 128 modern vessels, principally
through a pooling cooperation with other respected shipping
companies who share TORM's commitment to safety, environmental
responsibility and customer service. TORM was founded in 1889. The
Company conducts business worldwide and is headquartered in
Copenhagen, Denmark. TORM's shares are listed on the Copenhagen
Stock Exchange (ticker TORM) as well as on the NASDAQ (ticker
TRMD). For further information, please visit http://www.torm.com/.
Safe Harbor Forward Looking Statements Matters discussed in this
release may constitute forward-looking statements. Forward-looking
statements reflect our current views with respect to future events
and financial performance and may include statements concerning
plans, objectives, goals, strategies, future events or performance,
and underlying assumptions and other statements, which are other
than statements of historical facts. The forward-looking statements
in this release are based upon various assumptions, many of which
are based, in turn, upon further assumptions, including without
limitation, Management's examination of historical operating
trends, data contained in our records and other data available from
third parties. Although TORM believes that these assumptions were
reasonable when made, because these assumptions are inherently
subject to significant uncertainties and contingencies which are
difficult or impossible to predict and are beyond our control, TORM
cannot assure you that it will achieve or accomplish these
expectations, beliefs or projections. Important factors that, in
our view, could cause actual results to differ materially from
those discussed in the forward looking statements include the
strength of world economies and currencies, changes in charter hire
rates and vessel values, changes in demand for "tonne miles" of oil
carried by oil tankers, the effect of changes in OPEC's petroleum
production levels and worldwide oil consumption and storage,
changes in demand that may affect attitudes of time charterers to
scheduled and unscheduled dry-docking, changes in TORM's operating
expenses, including bunker prices, dry-docking and insurance costs,
changes in governmental rules and regulations including
requirements for double hull tankers or actions taken by regulatory
authorities, potential liability from pending or future litigation,
domestic and international political conditions, potential
disruption of shipping routes due to accidents and political events
or acts by terrorists. Risks and uncertainties are further
described in reports filed by TORM with the US Securities and
Exchange Commission, including the TORM Annual Report on Form 20-F
and its reports on Form 6-K. Forward looking statements are based
on management's current evaluation, and TORM is only under
obligation to update and change the listed expectations to the
extent required by law. For further information please see:
https://newsclient.omxgroup.com/cds/DisclosureAttachmentServlet?messageAt
tachmentId=177742 (Due to the length of this URL, it may be
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DATASOURCE: A/S Dampskibsselskabet TORM CONTACT: Contact: A/S
Dampskibsselskabet TORM, Telephone +45-39-17-92-00, Tuborg Havnevej
18 Klaus Kjærulff, CEODK-2900 Hellerup Denmark
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