Interim report - third quarter of 2010 & CEO Film

16 Nov 2010

Some highlights

• For the third quarter, NORDEN’s operating profit (EBITDA) was USD 22 million compared to USD 28 million for the same period in 2009. The operating profit for the first 9 months increased by 178% to USD 201 million against USD 72 million for the same period in 2009.

• For the third quarter, the primary operating profit (EBIT) was USD 45 million (USD 28 mio.) and year-to-date, EBIT increased by 110% to USD 200 million. The net profit was USD 53 million for the quarter (USD 37 million) and USD 199 million year-to-date (USD 169 million).

• As a result of a significant decrease in dry cargo freight rates in the fourth quarter and agreements on long-term coverage, which move earnings from the fourth quarter to the coming years, NORDEN lowers its expectations to an EBITDA of USD 220-250 million (previously USD 240-270 million) and an EBIT of USD 210-240 million (previously USD 225-255 million).

President and CEO Carsten Mortensen says in a comment:

"The downward adjustment is unfortunate – but explicable: The third quarter was affected by period deferrals, in the fourth quarter, we will be hit by lower rates on open ship days, and finally, we have chosen to increase coverage, thereby moving profit from the fourth quarter to the coming years. Yet, the overall picture remains unchanged: Earnings have increased significantly this year, and we expect an increase in EBITDA of 75-98% for the entire year compared to 2009. Looking forward, we have already covered 78% of the known ship days in Dry Cargo in 2011 and 42% in 2012."

Detailed report at: http://www.ds-norden.com/investor/financialnews/announcements/interimreport-thirdquarterof2010.html

NORDEN