Torm lost 7.5m dollar in Q3
Torm recognized a loss of 78.5 million dollar against a loss of 70.5 million dollar in the third quarter of 2011. The total deficit for the first 9 months amounted to 289.3 million dollar. Torm maintains its forecast for 2012.
“The financial results in the third quarter of 2012 were again negatively affected by the challenging market conditions as well as Torm’s financial situation. Looking forward, the recently completed restructuring agreement will enable Torm to become cash flow positive even at the current rate levels” says CEO Jacob Meldgaard.
EBITDA for the third quarter of was a loss of 11 million dollar including positive mark to market non-cash adjustments of 6 million dollar, compared to an EBITDA loss of 17 million dollar in the third quarter of 2011. In addition, financial expenses for the third quarter of 2012 included 15 million dollar in restructuring costs.
By 30 September 2012, Torm had covered 15% of the remaining tanker earning days in 2012 at USD/day 13,944 and 6% of the earning days in 2013 at USD/day 15,063. 103% of the remaining bulk earning days in 2012 are covered at USD/day 10,694 and 57% of the 2013 earning days at USD/day 14,621.
Torm maintains a forecasted loss before tax of USD 350-380 million for 2012 excluding accounting effects from the execution of the restructuring, further vessel sales and potential impairment charges. Due to the complexity, Torm has asked the Danish Securities Council for a ruling on the accounting effects of the restructuring.
Torm’s cost program has led to a reduction of administration costs to 15 million dollar in the third quarter of 2012, equivalent to a reduction of 11% compared to the same period of 2011 and 34% compared to 2008.
The book value of the fleet excluding financial lease vessels as of 30 September 2012 was 2.2 billion dollar. Based on broker valuations, Torm’s fleet excluding financial lease vessels had a market value of 1.3 billion dollar as of 30 September 2012. TORM estimates the fleet's total long-term earning potential each quarter based on future discounted cash flows, in accordance with IFRS requirements. The estimated value for the fleet as at 30 September 2012 supports the book value.
Net interest-bearing debt amounted to 1.9 billion in the third quarter of 2012 compared to USD 1.9 billion as at 30 June 2012.
Cash totaled 13 million dollar at the end of the third quarter of 2012 and the Company had no available credit lines. Torm has no order book and therefore no CAPEX related hereto. As at 6 November 2012 the cash and available credit lines totaled 65 million dollar as planned. Source: Torm
