Highlights

Highlights of 2007

• The profit for the year was USD 703 million (2006: USD 177 million), equalling DKK 3,830 (DKK 1,050 million) translated at the average exchange rate for the year. This profit is four times the profit for the previous year and provides a return on average equity of 70% (27%).
• The main explanations for the increased profit for the year is a higher operating profit in the Dry Cargo Department and larger profits from the sale of vessels (USD 163 million against USD 55 million).
• The Dry Cargo Department’s profit before depreciation (EBITDA) was USD 497 million (USD 126 million), constituting a 296% increase. The increase was primarily explained by a good positioning and a very strong dry cargo market.
• The Tanker Department’s EBITDA was up by 10% to USD 53 million (USD 48 million), driven by a higher level of activity and higher realised T/C equivalents in an otherwise weaker market.
• Positive cash flows from operations were generated in the amount of USD 467 million (USD 123 million).
• Equity grew to USD 1,311 million (USD 714 million).
• The active fleet of owned and part owned vessels remained stable at 14 vessels, while the number of owned and part owned vessels for delivery rose from 14 to 35.
• At the end of the year, the Company’s total theoretical NAV per share was estimated at DKK 614 (DKK 305). Of this, the value of the Company’s 75 (71) charter parties with purchase option amounted to DKK 323 per share (DKK 154). The calculation of Theoretical Net Asset Value is subject to significant uncertainty, however.
• In the Company’s risk model, the gearing was reduced from 1.4 to 0.4 in the course of 2007. The main reasons for this reduction are a combination of larger equity and reduced net liabilities as a result of the sale of vessels and the conclusion of long-term coverage contracts at attractive levels.
• The Board proposes a dividend of DKK 35 (DKK 5) per share, corresponding to a 44% (23%) payout ratio for the year.

• In dry cargo, NORDEN expects a strong, but volatile freight market in which the Chinese economy maintains a central role. At the beginning of the year, NORDEN has covered 78% of the known capacity in dry cargo at attractive rates. By mid-February, the coverage for 2008 was 88% while it was 42% for 2009.
• For tankers, the freight market is expected to remain at a reasonable level, although below the 2007 level. The known tanker capacity for 2008 is 8,045 ship days, of which 34% were covered at the beginning of the year. By mid-February, the coverage for 2008 was 31% while it was 11% for 2009.
• For 2008, NORDEN expects an EBITDA of USD 650-730 million. A profit after tax in the level of USD 750-830 million is expected, including a profit of USD 127 million from the sale of vessels and negative fair value adjustments of certain hedging instruments of USD -21 million.