FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of November 2004
A/S STEAMSHIP COMPANY TORM
(Translation of registrant's name into English)
Tuborg Havnevej 18
DK-2900 Hellerup
Denmark
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
--- ---
Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the information to
the commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes No X
--- ---
INFORMATION CONTAINED IN THIS FORM 6-K REPORT
Set forth herein as Exhibit 1 is a copy of Announcement No. 13
- 2004 - TORM - nine month report 2004 issued by A/S STEAMSHIP COMPANY TORM to
The Copenhagen Stock Exchange on November 11, 2004.
Exhibit 1
ANNOUNCEMENT NO. 13 - 2004
TORM - Nine month report 2004
11 November 2004
Profit for the first nine months of 2004 of DKK 1,760 mill. before tax -
expectations increased to minimum DKK 1,150 mill. before tax and value
adjustments.
o Net profit in the third quarter 2004 was DKK 260 mill., and DKK 827 mill.
for the first nine months of 2004 excluding value adjustments on the Norden
shares. The result is considered to be highly satisfactory.
o Net profit for the first nine months of 2004 was DKK 1,760 mill. including
value adjustments on the Norden shares of DKK 933 mill. and dividends
received of DKK 73 mill.
o Cash flow from operating activities was DKK 957 mill. in the first nine
months of 2004.
o Return on invested capital was 30.9% p.a. and return on equity was 73.2%
p.a. in the first nine months of 2004. Earnings per share (EPS) was DKK
50.6 against DKK 13.5 for the same period last year.
o Shareholders equity was DKK 3,948 mill. as of 30 September 2004.
o Freight rates for the Company's product tankers have increased considerably
in the fourth quarter due to extraordinarily strong demand, as a
consequence of the strong increase in oil consumption. As a consequence, we
expect a strong start to 2005.
o Expectations of full year 2004 profits before tax and value adjustments are
increased to minimum DKK 1,150 mill. The value adjustment as of 10 November
2004 was DKK 987 mill.
A telephone conference and webcast (www.torm.com), reviewing the report for the
first nine months of 2004, will take place on 11 November 2004, at 17.00
Copenhagen time. To participate, please call 10 minutes before the call starts
on tel.: +45 32 71 46 11 (from Europe) or +1 334 420 4950 (from USA).
A/S Dampskibsselskabet TORM
Contact persons: Klaus Kjaerulff, CEO (tel.: +45 39 17 92 00)
Klaus Nyborg, CFO (tel.: +45 39 17 92 00)
KEY FIGURES FOR THE GROUP
--------------------------------------------------------------------------------------------------------------------------
DKK mill. Change
Q1-Q3 Q1-Q3 Q1-Q3 Full year
2004 2003 2003-04 2003
--------------------------------------------------------------------------------------------------------------------------
INCOME STATEMENT
Net revenue 1,855 1,458 27% 1,928
Time Charter equivalent earnings 1,488 966 54% 1,307
Gross profit 1,024 479 114% 647
Profit before depreciation 963 413 133% 572
Profit before financial items 806 284 184% 395
Net gain/(loss) from other investments and
securities 935 197 375% 682
Other financial items 19 -13 -246% -25
Profit/(loss) before tax 1,760 468 276% 1,052
Net profit after tax for the period 1,760 468 276% 1,051
--------------------------------------------------------------------------------------------------------------------------
BALANCE SHEET
Total assets 6,672 4,405 51% 4,894
Shareholders' equity 3,948 1,956 102% 2,464
Liabilities 2,724 2,449 11% 2,430
Invested capital 3,761 3,083 22% 3,186
Net interest bearing debt 1,726 1,616 7% 1,698
--------------------------------------------------------------------------------------------------------------------------
CASH FLOW
From operating activities 957 387 147% 494
From investing activities -713 -676 5% -1,008
thereof investment in tangible fixed assets -713 -790 -10% -1,122
From financing activities 27 298 -91% 471
-- --- ---
Net cash flow 271 9 2911% -43
--------------------------------------------------------------------------------------------------------------------------
KEY FIGURES
Gross margin 55.2% 32.9% 33.6%
Profit before depreciation/Net revenue 51.9% 28.3% 29.7%
Profit before financial items/Net revenue 43.5% 19.5% 20.5%
RoE (p.a.) 73.2% 34.9% 51.4%
RoIC (p.a.) 30.9% 12.8% 13.1%
Equity ratio 59.2% 44.4% 50.3%
Share price, end of period (DKK)* 169.3 64.8 161% 90.3
Millions of shares, end of period* 36.4 36.4 0% 36.4
Earnings per share (DKK)* 50.6 13.5 274% 30.3
Exchange rate USD/DKK, end of period 6.00 6.37 -6% 5.96
Exchange rate USD/DKK, average 6.07 6.69 -9% 6.59
--------------------------------------------------------------------------------------------------------------------------
* The comparative figures are restated to reflect the issue of bonus shares in
May 2004.
------------------------------------------------------------------------------------------------------------------------
Segment information Q1-Q3 2004 Q3 2004
DKK mill.
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
Tanker Bulk Tanker Bulk
division division Unallocated Total division division Unallocated Total
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
Net revenue 1,060 795 0 1,855 369 270 0 639
Port expenses and bunkers -280 -87 0 -367 -107 -34 0 -141
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
Time charter equivalent earnings 780 708 0 1,488 262 236 0 498
Charter hire -62 -189 0 -251 -22 -59 0 -81
Operating expenses -165 -53 5 -213 -57 -21 5 -73
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
Gross Profit 553 466 5 1,024 183 156 5 344
Profit on sale of vessels and
interest 0 0 0 0 0 0 0 0
Administrative expenses -83 -26 -2 -111 -31 -9 -1 -41
Other Operating income 49 1 0 50 18 1 0 19
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
Profit before depreciation 519 441 3 963 170 148 4 322
Depreciation -129 -28 0 -157 -45 -11 0 -56
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
Profit before financial items 390 413 3 806 125 137 4 266
Net gain/(loss) form other
investments and securities 0 0 935 935 0 0 384 384
Other financial items -47 -8 74 19 -10 1 0 -9
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
Profit/(Loss) before tax 343 405 1,012 1,760 115 138 388 641
Tax 0 0 0 0 0 0 0 0
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
Net profit for the period 343 405 1,012 1,760 115 138 388 641
------------------------------------------------------------------------------------------------------------------------
TANKER DIVISION
The Tanker division achieved a net profit for the first nine months of 2004 of
DKK 343 mill.
The market for TORM's product tankers was at a very high level throughout the
period. Normally, seasonal factors cause a slowdown in the market during the
summer months in the second and third quarters, but aside from a short-lived
weakening during the start of the second quarter, all of 2004 has been marked by
very high freight rates that were higher than originally expected.
The growth in the world economy and very low inventories of refined oil products
due to the high oil prices and limited growth in refinery capacity in the
western world led to strong demand for transportation of refined oil products,
which was the reason for the increased rate levels.
-----------------------------------------------------------------------------------------------------------------------------
Earnings data for the Tanker division
2003 2004 2004 2004 Change
----------------------------------------------
q3 q1 q2 q3 q3-q3
LR2/Aframax vessels
-----------------------------------------------------------------------------------------------------------------------------
Available earning days 272 455 450 460 69%
TCE per earning days (USD)*) 32,804 32,012 27,896 28,389 -13%
OPEX per earning days (USD)**) -5,816 -4,453 -4,898 -4,148 -29%
Gross profit per earning day (USD)***) 18,479 21,697 17,061 18,212 -1%
-----------------------------------------------------------------------------------------------------------------------------
LR1/Panamax vessels
-----------------------------------------------------------------------------------------------------------------------------
Available earning days 194 288 319 406 109%
TCE per earning days (USD)*) 26,507 28,270 23,028 22,998 -13%
OPEX per earning days (USD)**) -7,070 -6,141 -5,267 -5,742 -19%
Gross profit per earning day (USD)***) 19,436 22,130 17,761 17,256 -11%
-----------------------------------------------------------------------------------------------------------------------------
MR vessels
-----------------------------------------------------------------------------------------------------------------------------
Available earning days 1,000 1,047 1,067 1,054 5%
TCE per earning days (USD)*) 19,369 21,491 20,288 19,890 3%
OPEX per earning days (USD)**) -4,575 -5,927 -5,367 -5,581 22%
Gross profit per earning day (USD)***) 14,794 15,565 14,920 14,308 -3%
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
*) TCE = Time Charter Equivalent Earnings = Gross freight income less bunker,
commissions and port expenses
**) Operating expenses for own vessels.
***) TCE earnings less operating expenses and charter hire.
TORM's Tanker division achieved freight rates during the third quarter 2004
which when compared to the third quarter 2003, were 13% lower for both the LR2
and LR1 segments and 3% higher for the MR segment. Thus, the freight rates
continued at the same level as in the second quarter 2004 - which was
unseasonally high.
The number of earning days in the LR2 segment increased during the period from
third quarter 2003 to third quarter 2004 by 69% due to the delivery of two
newbuildings towards the end of 2003. The number of earning days in the LR1
segment also increased (by 109%) due to the delivery of two newbuildings and
lower docking activity in the third quarter 2004. In the MR segment the number
of earning days increased by 5% compared to third quarter 2003, which was due to
the delivery of TORM Alice in February 2004, but offset by higher docking
activity.
BULK DIVISION
The Bulk division achieved a net profit of DKK 405 mill. in the first nine
months of 2004.
Rates in the bulk market have been very volatile during the first nine months of
2004. After a period with very high freight rates, the market dropped
significantly in the second quarter 2004, followed by healthy increases in the
third quarter 2004. The development in the bulk market freight rates has been
affected by economic developments in China, where the slowdown in the Chinese
economy, combined with significant inventory build-up in the first quarter, led
to a decrease in imports, thereby affecting freight rates in the second quarter.
TORM believes that China after a period of reducing inventories of a number of
commodities, especially iron ore, yet again increased the import of these goods
in the third quarter, which is the background for increasing freight rates.
Furthermore, the higher activity level has led to more waiting days for loading
and unloading in many ports. This reduces the capacity and increases pressure on
the bulk market freight rates.
------------------------------------------------------------------------------------------------------------------------------
Earnings data for the Bulk division
2003 2004 2004 2004 Change
--------------------------------------------
q3 q1 q2 q3 q3-q3
Panamax vessels
------------------------------------------------------------------------------------------------------------------------------
Available earning days 1,375 1,383 1,352 1,438 5%
TCE per earning days (USD)*) 12,965 23,219 26,501 25,562 97%
OPEX per earning days (USD)**) -5,496 -5,501 -5,810 -4,818 -12%
Gross profit per earning day (USD)***) 6,070 14,327 17,523 16,876 178%
------------------------------------------------------------------------------------------------------------------------------
Handysize vessels
------------------------------------------------------------------------------------------------------------------------------
Available earning days 276 303 302 237 -14%
TCE per earning days (USD)*) 8,419 15,963 16,320 14,806 76%
OPEX per earning days (USD)**) -2,811 -3,112 -3,302 -3,556 27%
Gross profit per earning day (USD)***) 3,455 11,187 11,082 10.340 199%
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
*) TCE = Time Charter Equivalent Earnings = Gross freight income less bunker,
commissions and port expenses
**) Operating expenses for own vessels.
***) TCE earnings less operating expenses and charter hire.
Compared to the same period last year, freight rates achieved in TORM's Bulk
division in the third quarter 2004 were 97% and 76% higher for TORM's Panamax
and Handysize vessels, respectively.
The number of available earning days for TORM's Panamax vessels was 5% higher
due to a slightly higher number of chartered in vessels, while the number of
available earning days for Handysize decreased by 14% due to re-delivery of
chartered in tonnage.
UNALLOCATED
Unallocated activities primarily consist of the unrealised value adjustment of
DKK 933 mill. on TORM's shareholding in Norden and dividend received from Norden
of DKK 73 mill. In addition to this, TORM received a dividend of DKK 127 mill.
from Norden in the fourth quarter 2004.
NINE MONTH 2004 RESULTS
Net Profit for the first nine months of 2004 was DKK 1,760 mill. including value
adjustment of DKK 933 mill. on TORM's shareholding in Norden and dividend
received of DKK 73 mill. The result is considered highly satisfactory.
During the first nine months of 2004, gross profit was DKK 1,024 mill. (against
DKK 479 mill. in the first nine months of 2003). The increase was primarily due
to a combination of higher freight rates in the Bulk division and a higher
number of earning days in the Tanker division, offset by a 9% lower average
USD/DKK exchange rate.
Profit before depreciation was DKK 963 mill. (DKK 413 mill.).
Depreciation was DKK 157 mill. during the first nine months of 2004 (DKK 129
mill.). The increase was due to the expansion of the Company's fleet through the
delivery of newbuildings and second-hand vessels in the period October 2003 -
September 2004, offset by the lower USD/DKK exchange rate.
Financial items were net positive by DKK 954 mill. (DKK 184 mill.). This
includes net gains on other investments and securities of DKK 935 mill.,
dividend received of DKK 73 mill., net interest expense of DKK 53 mill. and
other financial items of DKK minus 1 mill.
Profit before and after tax was DKK 1,760 mill. (DKK 468 mill.). Of this, the
Tanker division contributed DKK 343 mill. (DKK 242 mill.), while the Bulk
division's net profit was DKK 405 mill. (DKK 27 mill.). Other activities
(primarily unallocated financial items) showed a net profit of DKK 1,012 mill.
(DKK 199 mill.).
Cash flow from operating activities was positive by DKK 957 mill. in the first
nine months of 2004, primarily consisting of cash earnings and dividend of DKK
73 mill.
Cash flow from investing activities was negative by DKK 713 mill. This amount
includes investments in fixed assets, primarily vessels.
Cash flow from financing activities was DKK 27 mill. during the first nine
months of 2004. This amount mainly consists of borrowing in connection with the
delivery of newbuildings and second-hand vessels of DKK 711 mill., less
repayments on mortgage and leasing debt of DKK 422 mill., payment of dividends
to TORM's shareholders of DKK 209 mill. and net settlement of share options of
DKK 53 mill.
The total cash effect from the first nine months of 2004 was DKK 271 mill. The
Company's cash and bonds were DKK 750 mill. against DKK 479 mill. at the end of
2003.
Total assets increased in the first nine months of 2004 from DKK 4,894 mill. to
DKK 6,672 mill., mainly due to an increase in fixed assets in the period from
DKK 4,169 mill. to DKK 5,677 mill. This was positively impacted primarily by the
effect of the delivery of newbuildings and second-hand vessels, as described in
the section about fleet development, and the increased value of the Norden
investment, offset by depreciation in the period. The investment in Norden is
valued at DKK 2,587/share, the Copenhagen Stock Exchange price on 30 September
2004.
During the first nine months of 2004 the Company's net interest bearing debt
increased from DKK 1,698 mill. to DKK 1,726 mill. The increase is mainly due to
net borrowing in connection with the delivery of vessels, countered by the
positive cash effect from operations in the period.
Shareholders' equity grew from DKK 2,464 mill. to DKK 3,948 mill. in the first
nine months of 2004, primarily as a result of the earnings in the period, less
dividends paid. Shareholders' equity as a percentage of total assets increased
from 50.3% at 31 December 2003 to 59.2% at 30 September 2004.
TORM owned 1,566,612 of its own shares at 30 September 2004, corresponding to
4.3% of the share capital. This is a reduction of 196,124 shares from 31
December 2003.
THIRD QUARTER 2004 RESULTS
Gross profit in the third quarter 2004 was DKK 344 mill. Profit before
depreciation for the period was DKK 322 mill., while profit before financial
items was DKK 266 mill. in the third quarter. Of this, the Tanker and Bulk
divisions contributed DKK 125 mill. and DKK 137 mill. respectively.
Profit before the value adjustment was DKK 260 mill.
Financial items were DKK 375 mill., chiefly as a result of a positive value
adjustment of DKK 381 mill. in the third quarter. On its own, third quarter
profit after tax was DKK 641 mill.
FLEET DEVELOPMENT
TORM has increased its owned fleet in 2004 by 25% measured in deadweight tons.
During the first nine months, the fleet has grown by three product tankers and
two bulk vessels.
In addition, TORM has taken delivery of the 1999-built MR product tanker TORM
Agnete (previously MT Zorca) in October 2004. Furthermore, TORM has exercised an
option to purchase the Panamax bulk vessel TORM Tina, which will be delivered
before the end of 2004, and acquired two MR newbuildings from the STX yard in
South Korea, which will be delivered in first/second quarter 2005.
--------------------------------------------------------------------------------
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 other statements, which are 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 assure you 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 world economies and currencies, changes in charter hire rates and
vessel values, changes in demand for "tonne miles" of crude 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 governmental rules and regulations 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.
--------------------------------------------------------------------------------
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
A/S STEAMSHIP COMPANY TORM
(registrant)
Dated: November 12, 2004
By: /s/ Klaus Nyborg
--------------------------
Klaus Nyborg
Chief Financial Officer
03810.0001 #525929