Financial performance

The Tanker Department’s EBITDA developed positively with a 10% rise to USD 53 million (USD 48 million). This performance was positively affected by a level of activity that was 20% higher and negatively affected by higher operating costs due to a relatively higher proportion of chartered vessels to owned vessels. This also resulted in a 28% decrease in depreciation, however. The Company recognised profits from the sale of two crude oil tankers and two product tankers in the total amount of USD 104 million (USD 0 million). Accordingly, the overall operating profit (EBIT) was DKK 149 million (USD 41 million) – the best in the history of the Tanker Department.

 

Although the overall product tanker market measured in terms of the BCTI was lower than in 2006, the Company realised T/C equivalents 5-6% above the previous year’s. The positive performance was attributable to a combination of the good market position attained by the Norient Product Pool and good strategy change in the crude oil segment Aframax meant that the Company now operated more tonnage in the spot market, resulting in T/C equivalents more in line with the comparable market level.