Interim report - first quarter of 2008

20 May 2008

The first quarter - highlights

* The profit for the period for the first quarter was USD 200 million. The profit is 48% up on the same period last year. The net profit of DKK 997 million - translated - corresponds to earnings of DKK 24 per share against DKK 18 in the first quarter of 2007.
* EBITDA for the first quarter increased by 38% to USD 121 million. The increase is a result of considerably higher activity in the Dry Cargo Department, showing a 41% increase in the number of ship days which were employed at higher freight rates. The Tanker Department's EBITDA decreased due to a weaker spot market.
* As expected, EBITDA was down by 42% on the fourth quarter of 2007 due to a volatile dry cargo market and a declining product tanker market, which affected the Company's vessels operating in the spot market.
* After the end of the quarter, the freight rates in both segments have increased considerably, in the spot market and - especially with respect to dry cargo - also in the period market.
* In the first quarter, the Company's operations generated a positive cash flow of USD 117 million.
* At the end of the quarter, the active fleet consisted of 212 vessels, and the number of vessels for delivery amounted to 90 units.
* At the beginning of May, 80% of the year's known capacity in the Dry Cargo Department and 34% of the known capacity in the Tanker Department had been covered. For 2009, the coverage was 50% in the Dry Cargo Department and 11% in the Tanker Department.
* At the end of the period, the Company's total theoretical Net Asset Value (including the value of charter parties with purchase or extension option) is estimated to be DKK 659 per share.
* NORDEN maintains the previously stated profit expectations at the EBITDA and EBIT level, however, makes an upward adjustment of the expected annual profit for 2008 to be in the range of USD 885-965 million, including realised profits from the sale of vessels of USD 265 million and a fair value adjustment of certain hedging instruments of USD -21 million. The upward adjustment of USD 15 million is purely financial in character and is due to hedging of the dividend paid. NORDEN