Interim report - First quarter of 2016

Attached please find the full report as PDF file.

________________________________________________________________________________

Announcement no. 11
 4. maj 2016

Interim report - First quarter of 2016

Today, the Board of Directors approved the interim report for the first quarter of 2016. The full report is attached as PDF file and contains the following highlights:

• Adjusted result for the period Q1 2016: USD -5 million.

("Results for the period" adjusted for "Profits from the sale of vessels etc." and "Fair value adjustment of certain hedging instruments") (Q1 2015: USD 27 million).

• EBIT Q1 2016 USD -1 million (USD 30 million).

• Tanker market as expected: Lower than last year, but continued good rates.

• Tanker: Adjusted result for the period Q1: USD 15 million (USD 25 million) corresponding to EBIT 16 million (USD 27 million).

• Historically weak dry cargo market with minor improvements after the end of the quarter.

• Dry Cargo: Adjusted result for the period Q1: USD -20 million (USD 2 million) corresponding to EBIT USD    -17 million (USD 3 million).

• Positive cash flows from operating activities: USD 7 million (USD -3 million).

• Average NORDEN TCE earnings:

Tanker: USD 17,799, which is on the same level as the market.

Dry Cargo: USD 6,418 corresponding to 37% above the market.

• Ship values have dropped in both segments with a slightly upward trend in dry cargo after the end of the quarter.

• Expectations to the adjusted results for the year are maintained at USD -60 to 30 million.

CEO Jan Rindbo in comments:

"NORDEN's tanker business still brings home reasonable results, which contributes to cushion the effects of a historically poor quarter in the dry cargo market. The dry cargo index the Baltic Dry Index reached a new low in February, and despite a record number of scrappings of dry cargo vessels, this could not make up for the many deliveries of new vessels. Based on the increase in Chinese imports, the dry cargo market saw a slight improvement in March. NORDEN is optimising its fleet, utilising its flexible business model and chartering more vessels for single trips than before, in order to get maximum value out of the markets".                                                                                                               

A telephone conference will be held today at 3:30 p.m. (CET), where CEO Jan Rindbo and CFO Martin Badsted will comment on the report. It is requested that all participants have joined the meeting by latest 3:25 p.m. (CET) - Danish participants please dial in on +45 3271 1660, overseas participants please dial in on +44 (0) 20 3427 1915 or +1 646 254 3388. The telephone conference will be shown live at www.ds-norden.com, where the accompanying presentation will also be available.

For further information: CEO Jan Rindbo, tel. +45 3315 0451.

________________________________________________________________________________

DAMPSKIBSSELSKABET NORDEN A/S, STRANDVEJEN 52, 2900 HELLERUP, CVR-NR. 67758919

Vedhæftede filer:

Interim report first quarter of 2016.pdf