Annual Report 2012
13 3월 2013 - 4:19PM
COPENHAGEN, Denmark, March 13, 2013 (GLOBE NEWSWIRE) --
"2012 proved challenging for shipping in general and in
particular TORM faced uncertainty for a prolonged period. On a
positive note, TORM succeeded in achieving a financial
restructuring, which brings stability to the Company for the coming
period. The Board of Directors is con-fident that TORM together
with its most important stakeholders will re-establish the
foundation for a stronger company going forward," says Chairman of
the Board Flemming Ipsen. |
- In 2012, the Company incurred a loss before tax of USD 579
million. This is clearly unsatisfactory and impacted by special
items of USD -326 million including restructuring costs of USD 210
million, impairment loss from assets held for sale of USD 74
million, an impairment loss of USD 42 million related to FR8. The
performance is in line with the revised forecast of 27 February
2013.
- Throughout 2012, the Tanker Division's earnings were negatively
impacted by low freight rates and continued tonnage oversupply in
the global product tanker market. The continued European financial
crisis and a slowdown in GDP growth in China and the USA negatively
affected global indicators. Combined, these factors led to a
slowdown in global oil consumption, consequently adversely
impacting oil product transportation. The Tanker Division's result
was to a significant degree adversely affected by TORM's financial
situation in 2012.
- During 2012, dry bulk freight rates continued to be volatile
and under pressure. The dry bulk spot market stayed volatile due to
seasonality and events such as the drought during the US grain
season, the Indonesian raw material export ban and the tropical
storms Isaac and Sandy. In 2012, the bulk market saw the highest
level of newbuilding deliveries ever recorded. However, demand from
China continued to be strong. The Bulk Division experienced a high
number of waiting days in 2012 due to the Company's challenging
financial situation.
- The Company's 2012 performance was negatively impacted by a USD
16 million net loss from the sale of TORM Lana and the cancellation
of one product tanker newbuilding contract. In addition, there was
a loss of USD 10 million from the termination of finance lease
vessels in connection with the restructuring. Five MR vessels are
accounted for as assets held for sale with an impairment charge of
USD 74 million.
- As stated in company announcements no. 31 dated 2 October 2012
and no. 32 and no. 33 dated 5 November 2012, TORM entered into a
Restructuring Agreement with its banks and time charter partners
that secured the Company deferral of bank debt, new liquidity and
substantial savings from the restructured time charter book. The
receivable that the time charter partners were given for the
amended contractual conditions as well as a fee to the banks,
estimated at a total net present value of USD 200 million, has been
converted into shares in TORM, corresponding to 90% of the shares
in the Company. Consequently, the existing shareholders retained an
ownership interest of 10%.
- As of 31 December 2012, cash totaled USD 28 million and undrawn
credit facilities amounted to USD 42 million. TORM has no
newbuilding order book and therefore no CAPEX commitments related
hereto.
- The book value of the fleet excluding finance lease vessels as
of 31 December 2012 was USD 1,934 million. Based on broker
valuations, TORM's fleet excluding finance lease vessels had a
market value of USD 1,145 million as of 31 December 2012. In
accordance with IFRS, TORM estimates the fleet's total long-term
earning potential each quarter based on discounted future cash
flows. The estimated value of the fleet as of 31 December 2012
supports the carrying amount.
- As of 31 December 2012, net interest-bearing debt amounted to
USD 1,868 million.
- As of 31 December 2012, equity amounted to USD 267 million (DKK
1,513 million), corresponding to USD 0.4 per share (DKK 2.1)
excluding treasury shares, resulting in an equity ratio of 11%.
- As of 31 December 2012, 8% of the total earning days in the
Tanker Division for 2013 were covered at a rate of USD/day 15,126
and 66% of the total earning days in the Bulk Division at USD/day
13,155.
- For the full year 2013, TORM forecasts a loss before tax of USD
100-150 million before potential vessel sales and impairment
charges. TORM expects to remain in compliance with the financial
covenants for 2013. In addition, TORM expects to be operational
cash flow positive after interest payment. The uncertainties and
sensitivities about freight rates and asset prices may have an
effect on the Company's compliance with the financial covenants. As
24,676 earning days are uncovered at year-end 2012, a change in
freight rates of USD/day 1,000 would impact profit before tax by
USD 25 million.
- The Board of Directors proposes that no dividend be distributed
for 2012.
Safe Harbor statements as to the future
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
statements 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 guarantee 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 the world economy 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 the regulation
of shipping operations, 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 an obligation to update and
change the listed expectations to the extent required by law.