TORM A/S, Q3 2009 Earnings Call, Nov-18-2009

TORM A/S announced unaudited earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company reported profit before tax was $4.4 million, including a positive impact of $21 million from the sale of two bulk carriers compared to $91.3 million for the same period last year. The company reported net profit of $2.1 million, operating profit of $24.2 million, EBITDA of $59.2 million on the net revenue of $208.8 million compared to net profit of $90.8 million, operating profit of $119.6 million, EBITDA of $150.9 million on the net revenue of $336.6 million for the same period last year. The company reported cash flow from operating activities of $22.2 million and investment in tangible fixed assets of $87.1 million compared to cash flow from operating activities of $111.2 million and investment in tangible fixed assets of $112.6 million for the same period last year. The company reported return on equity negative to 3.5% compared to return on equity of 26.7% for the same period last year. The company reported diluted earnings per share of $0.0 and cash flow per share of $0.3 compared to diluted earnings per share of $1.3 and cash flow per share of $1.6 for the same period last year. For the nine months, the company reported profit before tax was $11.1 million compared to $289.3 million for the same period last year. The company reported net profit of $8.1 million, operating profit of $70.2 million, EBITDA of $170.5 million on the net revenue of $661.2 million compared to net profit of $288.4 million, operating profit of $339.6 million, EBITDA of $432.7 million on the net revenue of $878.2 million for the same period last year. The company reported cash flow from operating activities of $95.2 million and investment in tangible fixed assets of $261.3 million compared to cash flow from operating activities of $264.1 million and investment in tangible fixed assets of $293.7 million for the same period last year. The company reported return on equity of 0.0% compared to 30.9% for the same period last year. The company reported diluted earnings per share of $0.1 and cash flow per share of $4.2 compared to diluted earnings per share of $4.2 and cash flow per share of $3.8 for the same period last year. The company maintains its forecast of a profit before tax of around break-even for 2009.

Mikael Skov, MD of TORM A/S said that the firm is interested in joining new partnerships both when it comes to acquisitions, mergers and more informal partnerships. The firm has also decided to put its ambitious growth plan on hold due to the global crisis in the shipping industry.