Torm loss of 132m dollar in Q2
SHIPPING: Torm recognized a loss before tax of USD 132 million, compared to a loss of USD 24 million in the same period of 2011. Loss before special items of USD 73 million in the second quarter was USD 59 million.
“The financial results in the second quarter of 2012 were negatively affected by the challenging market conditions as well as Torm’s difficult financial situation. Torm experiences full support for a final restructuring agreement from all involved parties”. says CEO Jacob Meldgaard.
Torm is still working closely with its banks and time charter partners on a financing and restructuring plan. The completion of a restructuring agreement is a prerequisite for TORM’s continued operation.
EBITDA for the second quarter of 2012 was a loss of USD 23 million including negative mark-to-market non-cash adjustments of USD 8 million and loss from sale of vessels of USD 5 million in a jointly controlled company, compared to an EBITDA gain of USD 30 million in the second quarter of 2011.
Impairment losses from FR8 accounted for USD 42 million in the second quarter of 2012, compared to no impairment losses in the same period of 2011. In addition, financial expenses for the second quarter of 2012 include USD 18 million in restructuring costs.
The book value of the fleet excluding financial lease vessels as of 30 June 2012 was USD 2,193 million. Based on broker valuations, Torm’s fleet excluding financial lease vessels had a market value of USD 1,370 million as of 30 June 2012. TORM estimates the fleet's total long-term earning potential each quarter based on future discounted cash flows. The estimated value for the fleet as at 30 June 2012 supports the book value.
As at 30 June 2012, TORM had covered 12% of the remaining tanker earning days in 2012 at USD/day 14,300 and 4% of the earning days in 2013 at USD/day 15,005. 119% of the remaining bulk earning days in 2012 are covered at USD/day 12,148 and 27% of the 2013 earnings days at USD/day 17,454.
Source: Torm
