Annual Report 2019 and Outlook 2020

ANNOUNCEMENT NO. 8 - 4 MARCH 2020

Attached please find the full report as PDF file

Annual Report 2019 and Outlook 2020

Today, the Board of Directors approved the annual report for 2019. The full report in English is attached as PDF file and contains the following highlights:

Results
Adjusted result (“profit/loss for the period” adjusted for “profit from sale of vessels etc.”) for the year 2019: USD 23 million (2018: USD 20 million).

Dry Operator: USD 8 million (USD 30 million)
Dry Owner: USD 2 million (USD 18 million)
Tankers: USD 13 million (USD -28 million)

EBIT 2019: USD 57 million (USD 39 million)

Dry Operator: After a challenging period in the middle of 2019, Dry Operator successfully navigated a market in strong decline in the fourth quarter.

Dry Owner: Focus on reducing forward exposure of the business unit through vessel sales and securing attractive coverage agreements.

Tankers: With a strong finish to the year, NORDEN generated average daily Handysize and MR earnings of USD 14,806 and USD 14,413, respectively.

Guidance

Despite challenging markets and an uncertain outlook due to the outbreak of the COVID-19 virus, NORDEN expects to deliver improved earnings with an expected Adjusted Result for 2020 in the range of USD 30 to 70 million.

As a new dividend policy for 2020 onwards, NORDEN targets annual dividends based on a pay-out ratio of minimum 50% of the annual Adjusted Result.

CEO Jan Rindbo in comment:

“With the best quarterly result in almost five years, NORDEN finished the year with a strong performance in the fourth quarter delivering a USD 23 million profit for 2019. Despite challenging markets and an uncertain outlook for the global economy, NORDEN expects to deliver improved earnings with an expected Adjusted Result for 2020 in the range of USD 30-70 million.”

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 [phone] international participants please dial in on [phone] or [phone] (code 3778347). The telephone conference will be available live at www.ds-norden.com together with the accompanying presentation. It will also be possible to listen to the presentation later via the homepage.

For further information:
Jan Rindbo, CEO, tel.: [phone].

Key figures and financial ratios

	2019	2018*	2017*	2016*	2015*
Income statement, USD million
Revenue	2,583.9	2,451.4	1,808.6	1,251.2	1,653.4
Contribution margin	295.0	132.3	116.8	76.1	70.9
EBITDA	217.5	72.5	68.1	30.6	20.5
Profit and loss from sale of vessels, etc.	-3.6	8.8	0.9	-45.5	-31.0
Depreciation, amortisation and impairment losses	-156.9	-44.3	-42.2	-49.6	-248.6
EBIT	56.8	39.4	23.3	-64.5	-282.0
Financial items, net	-32.7	-6.9	-0.9	-12.2	-9.4
Profit/loss for the year	19.2	28.8	24.6	-45.6	-284.9
Adjusted results for the year 1	22.8	20.0	28.4	-34.6	-263.0
Statement of financial position, USD million			786.5	767.1	945.7
Total assets	1,742.4	1,464.4	1,326.5	1,301.0	1,604.7
Equity	859.0	826.8	834.4	801.4	856.1
Liabilities	883.4	637.6	492.1	499.6	748.6
Invested capital	1,283.5	970.2	836.7	753.8	788.7
Net interest-bearing debts/assets	-424.5	-143.4	-2.3	47.6	67.3
Cash and securities	209.3	188.6	219.4	263.9	365.7
Cash flows, USD million
From operating activities	280.5	-15.8	6.3	-79.7	76.9
From investing activities	-90.9	-78.4	-0.2	102.1	-112.9
- hereof investments in property, plant and equipment	-102.7	-202.7	-75.4	-36.8	-131.6
From financing activities	-211.2	95.4	3.0	-85.3	67.5
Environmental and social key figures
EEOI** (gCO2/tonnes-mile)	8.70	8.60	8.75	9.03	8.78
LTIF*** (million working hours)	1.45	0.29	1.58	0.89	0.88
Share-related key figures:
No. of shares of DKK 1 each (including treasury shares)	42,200,000	42,200,000	42,200,000	42,200,000	42,200,000
No. of shares of DKK 1 each (excluding treasury shares)	39,311,533	39,923,933	40,467,615	40,467,615	40,467,615
No. of treasury shares	2,888,467	2,276,067	1,732,385	1,732,385	1,732,385
Earnings per share (EPS), USD (DKK)	0.5 (3)	0.7(4)	0.6 (4)	-1.1 (-8)	-7.0 (-47)
Diluted earnings per share (diluted EPS), USD (DKK)	0.5 (3)	0.7(4)	0.6 (4)	-1.1 (-8)	-7.0 (-47)
Dividend per share, DKK	2.5	2.0	0.0	0.0	0.0
Book value per share USD (DKK)	21.9 (146)	20.7 (135)	20.6 (128)	19.8 (140)	21.2 (144)
Share price at year-end, per share DKK 1	106.7	92.4	116.5	110.5	122.1
Other key figures and financial ratios:
EBITDA ratio	8.4%	3.0%	3.8%	2.4%	1.2%
ROIC	5.0%	4.4%	2.9%	-8.4%	-10.6%
ROE	2.3%	3.5%	3.0%	-5.5%	-28.6%
Payout ratio (excluding treasury shares) 2	76.6%	41.7%	0.0%	0.0%	0.0%
Equity ratio	49.3%	56.5%	62.9%	61.6%	53.3%
Price/book value	0.7	0.7	0.9	0.8	0.8
Total no. of ship days for the Group	138,327	122,852	93,738	79,060	75,763
USD rate at year-end	667.59	651.94	620.77	705.28	683.00
Average USD rate	667.03	631,74	659.53	673.27	672.69

The ratios were computed in accordance with ”Recommendations and Financial Ratios 2018” issued by the Danish Association of Financial Analysts. However, “Profit and loss from sale of vessels, etc.” is not included in EBITDA. Please see definitions in the section “Definitions of key figures and financial ratios”. The figures are adjusted for the Company’s holding of treasury shares.
1. “Adjusted result for the year” is computed as “Profit/loss for the period” adjusted for “Profit and loss from sale of vessels, etc.” and for 2015-17 “Fair value adjustment of certain hedging instruments”. Including adjustment from sale of vessels in joint ventures.                                                                                                                                                                                    
2. The payout ratio was computed based on proposed dividends for the year, including extraordinary dividends paid during the year.

* Key figures for 2015-2018 are not restated to reflect IFRS 16.
** Energy Efficient Operational Indicator (EEOI) is a measurement of efficiency and is defined as the amount of CO₂ emitted per tonne of cargo transported 1 mile. EEOI is influenced by commercial effects including cargo availability, waiting time and port stays where the vessel is not active. EEOI is affected by speed, vessel size and fuel type.
*** Lost time Injury Frequency (LTIF) is the frequency a seafarer is unable to work for more than 24 hours per 1 million working hours.                                                                                                                                                                                                                       

Attachments

• No. 8 - Annual report 2019 and outlook 2020
• Annual report 2019 and outlook 2020
• NORDEN_Annual_Report_2019_web