"TORM's Leading Presence in the Product Tanker Market has Ensured an Exceptional Result for the First Nine Months, and we Mainta

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COPENHAGEN, November 21 /PRNewswire-FirstCall/ -- - Profit before tax for the first three quarters of 2008 was USD 290 million. - TORM forecasts a pre-tax profit for 2008 of USD 355 - 370 million as announced on 11 August 2008, when the full-year forecast was upgraded (announcement no. 16/2008). - TORM has unutilised credit facilities and cash in excess of USD 700 million. - Due to the sharp fall in oil prices from the peak in July 2008 TORM has in the third quarter unrealized mark-to-market adjustments on FFA and bunker hedge of USD 6 million and on financial derivatives of USD 11 million. - Equity amounted to USD 1,269 million (DKK 6,622 million) as at 30 September 2008, equivalent to USD 18.3 per share (DKK 95.6 per share), excluding treasury shares. - The market value of TORM's fleet, including the order book, exceeded book value by USD 1,589 million at 30 September 2008, equalling USD 23.0 per share (DKK 119.8 per share), excluding treasury shares. - The market for transport of crude oil was firm during the first part of the third quarter, while earnings in the latter part were better for transport of refined oil products. Product tanker earnings have dropped in the fourth quarter, although they remain at seasonably high levels. As at 31 October 2008, TORM had covered 63% of the remaining earning days for 2008 in the Tanker Division at USD 25,299 per day. - Bulk freight rates dropped towards the end of the third and into the fourth quarter, primarily due to lower demand for coal and iron ore and concern of the global economic development. As at 31 October 2008, TORM had covered 78% of the remaining earning days for 2008 in the Bulk Division at USD 45,550 per day. - At the end of the third quarter, the Company's net interest bearing debt totalled USD 1,575 million. More than half of the debt falls due in or after 2013. - As at 31 October 2008, TORM had covered approximately 32% of the total fleet's earning days in 2009. - The historically good result in combination with the development of the share price has led TORM to propose an interim dividend of DKK 4.50 per share. The company will call in for an extraordinary general meeting. - "Although the product tanker market, TORM's principal business area, is currently doing well, we have taken a number of risk precautions both internally and vis-a-vis customers, suppliers and financial counterparties in order to limit the effects if the financial crisis continues. Our strong balance sheet and financial resources provide a solid foundation for the Company to manoeuvre in more difficult market conditions in 2009," announces CEO Mikael Skov. Teleconference A teleconference and webcast (http://www.torm.com/) will take place today, 21 November 2008, at 17:00 Copenhagen time (CET). To participate, please call 10 minutes before the call on tel.: +45-3271-4607 (from Europe) or +1-334-323-6201 (from the USA). A replay of the conference will be available from TORM's website. Financial highlights Million USD Q3 2008 Q3 2007 Q1-Q3 Q1-Q3 2007 2008 2007 Income statement Net revenue 336.6 208.1 878.2 549.4 773.6 Time charter equivalent earnings (TCE) 244.2 162.4 680.2 427.4 604.3 Gross profit 152.3 90.1 409.3 238.6 333.9 EBITDA 144.8 78.8 421.0 209.3 294.1 Operating profit 119.6 48.1 339.6 147.2 199.0 Profit before tax 91.3 37.7 289.8 776.9 804.2 Net profit 90.8 34.8 288.4 775.2 791.7 Balance sheet Total assets 3,242.5 2,875.5 3,242.5 2,875.5 2,958.9 Equity 1,268.5 1,062.7 1,268.5 1,062.7 1,081.2 Total liabilities 1,974.0 1,812.8 1,974.0 1,812.8 1,877.7 Invested capital 2,833.3 2,556.5 2,833.3 2,556.5 2,618.5 Net interest bearing debt 1,574.7 1,504.8 1,574.7 1,504.8 1,548.3 Cash flow From operating activities 111.2 6.3 264.1 126.2 187.9 From investing activities 3.4 113.8 -225.2 -251.5 -356.6 Thereof investment in tangible fixed assets -112.6 -16.5 -293.7 -160.5 -252.2 From financing activities -59.5 -455.2 -10.5 180.2 242.1 Net cash flow 55.1 -335.1 28.4 54.9 73.4 Key financial figures Margins: TCE 72.5% 78.0% 77.5% 77.8% 78.1% Gross profit 45.2% 43.3% 46.6% 43.4% 43.2% EBITDA 43.0% 37.9% 47.9% 38.1% 38.0% Operating profit 35.5% 23.1% 38.7% 26.8% 25.7% Return on Equity (RoE) (p.a.)*) 26.7% 11.4% 30.9% 69.9% 67.1% Return on Invested Capital (RoIC) (p.a.)**) 15.6% 7.8% 15.8% 10.2% 10.2% Equity ratio 39.1% 37.0% 39.1% 37.0% 36.5% Exchange rate USD/DKK, end of period 5.22 5.26 5.22 5.26 5.08 Exchange rate USD/DKK, average 4.97 5.41 4.91 5.54 5.44 Share related key figures Earnings per share, EPS USD 1.3 0.5 4.2 11.2 11.4 Diluted earnings per share, DEPS USD 1.3 0.5 4.2 11.2 11.4 Cash flow per share, CFPS USD 1.6 0.1 3.8 1.8 2.7 Share price, end of period (per share of DKK 5 each) DKK 126.2 214.2 126.2 214.2 178.2 Number of shares, end of period Mill. 72.8 72.8 72.8 72.8 72.8 Number of shares (excl. treasury shares), average Mill. 69.2 69.2 69.2 69.2 69.2 *) The gain from the sale of the Norden shares is not annualized when calculating the Return on Equity for Q1-Q3 2007,and the gain from sale of vessels not is annualized when calculating the Return on Equity in 2008. **)The gain from sale of vessels is not annualized when calculating the Return on Invested Capital for Q1-Q3 2008. Profit by division Million USD Q3 2008 Tanker Bulk Not Division Division Allocated Total Revenue 263.3 73.3 0.0 336.6 Port expenses, bunkers and commissions -74.0 -2.5 0.0 -76.5 Freight and bunkers derivatives -15.9 0.0 0.0 -15.9 Time charter equivalent earnings 173.4 70.8 0.0 244.2 Charter hire -35.2 -15.2 0.0 -50.4 Operating expenses -38.2 -3.3 0.0 -41.5 Gross Profit 100.0 52.3 0.0 152.3 Profit from sale of vessels 10.8 0.0 0.0 10.8 Administrative expenses -20.7 -1.9 0.0 -22.6 Other operating income 4.3 0.0 0.0 4.3 Depreciation and impairment losses -29.6 -1.7 0.0 -31.3 Share of results of jointly controlled entities 3.0 0.0 3.1 6.1 Operating profit 67.8 48.7 3.1 119.6 Financial items - - -28.3 -28.3 Profit/(Loss) before tax - - -25.2 91.3 Tax - - -0.5 -0.5 Net profit - - -25.7 90.8 Table Cont. Million USD Q1-Q3 2008 Tanker Bulk Not Division Division Allocated Total Revenue 679.1 199.1 0.0 878.2 Port expenses, bunkers and commissions -182.7 -7.7 0.0 -190.4 Freight and bunkers derivatives -7.6 0.0 0.0 -7.6 Time charter equivalent earnings 488.8 191.4 0.0 680.2 Charter hire -96.9 -43.8 0.0 -140.7 Operating expenses -119.0 -11.2 0.0 -130.2 Gross Profit 272.9 136.4 0.0 409.3 Profit from sale of vessels 10.8 52.0 0.0 62.8 Administrative expenses -56.9 -5.2 0.0 -62.1 Other operating income 11.0 0.0 0.0 11.0 Depreciation and impairment losses -87.6 -5.5 0.0 -93.1 Share of results of jointly controlled entities 5.8 0.0 5.9 11.7 Operating profit 156.0 177.7 5.9 339.6 Financial items - - -49.8 -49.8 Profit/(Loss) before tax - - -43.9 289.8 Tax - - -1.4 -1.4 Net profit - - -45.3 288.4 "Not-allocated" includes the activity that TORM owns in a 50/50 joint venture with Teekay, as well as the activity that relates to TORMs 50% share in FR8. Tanker Division The Tanker Division achieved an operating profit of USD 67.8 million in the third quarter of 2008 against USD 52.5 million in the second quarter of 2008. The share of results of jointly controlled entities, which for the year amounted to USD 11.7 million, FR8 contributed a profit of USD 12.5 million and OMI a loss of USD 6.6 million. The market for transport of crude oil was very positive in the first part of the third quarter. This primarily benefited the LR2 fleet. In the latter part of the quarter, earnings were highest for transport of refined oil products. The LR2 and LR1 vessels' earnings were very high, but MR and SR vessels also enjoyed good earnings during the quarter. At the beginning of the fourth quarter, product tanker rates have dropped, but still remain at seasonably high levels. The tanker market was affected by the following significant factors in the third quarter of 2008: Positive impact: - The drop in fuel prices from USD 700 per ton to USD 550 per ton positively affected earnings measured in terms of TCE levels, equalling an improvement of earnings of approximately USD 6.000 per day for an LR1 vessel. - Following hurricanes Gustav and Ike, up to 160 vessels were waiting to load and discharge in the Gulf of Mexico, a major factor in the balance between supply and demand for the MR fleet, in particular. - Increased European demand for gas oil and diesel fuel meant more cargoes from Japan and South Korea, increasing transport distances for the large LR1 and LR2 vessels. - Increased imports of refined oil products to Western Africa meant longer transport distances and longer chargeable waiting times, primarily benefiting the LR1 fleet. Negative impact: - The financial crisis and declining economic growth have reduced the number of arbitrage-based transports. - Rising stocks of naphtha in the Far East negatively affected the LR2 fleet. TORM's Tanker Division achieved freight rates in the third quarter of 2008 that were 122% higher than in the third quarter of 2007 for the LR2 segment, 15% higher for the MR segment, and 24% higher for the SR segment, while the rates obtained for the LR1 segment were 14% lower. Tanker Division Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Change 12 Q3 07 month -Q3 08 avg. LR2 (Aframax 90-110,000 DWT) Available earning days 906 903 908 926 970 7% TCE per earning day(1) 21,841 23,316 28,538 32,084 48,421(3) 122% 33,354 Operating days 818 864 865 896 967 18% Operating expenses per operating day(2) 6,471 6,466 8,270 7,906 7,226 12% 7,464 LR1 (Panamax 75-85,000 DWT) Available earning days 1,577 1,702 1,822 1,764 1,804 14% TCE per earning day(1) 27,448 26,548 23,533 27,036 23,648(4) -14% 25,157 Operating days 685 695 682 687 690 1% Operating expenses per operating day(2) 4,955 5,336 6,538 7,028 6,942 40% 6,458 MR (45,000 DWT) Available earning days 2,223 2,497 2,490 2,576 2,668 20% TCE per earning day(1) 22,978 21,715 22,716 23,158 26,458(5) 15% 23,559 Operating days 2,089 2,393 2,368 2,533 2,525 21% Operating expenses per operating day(2) 6,147 8,224 8,260 7,885 7,482 22% 7,954 SR (35,000 DWT) Available earning days 732 1,104 1,088 1,092 1,100 50% TCE per earning day(1) 16,129 17,121 21,034 21,036 20,078 24% 19,809 Operating days 732 1,104 910 911 917 25% Operating expenses per operating day(2) 5,460 7,255 8,182 7,898 7,478 37% 7,680 1) Time Charter Equivalent (TCE) = Gross freight income less bunker, commissions and port expenses. In the second quarter un-allocated earnings amounts to USD -9.2 million and comprise of fair value adjustment of freight and bunkers derivatives, which are not designated as hedges, and gains and losses on freight and bunkers derivatives, which are not entered for hedge purposes. 2) Operating expenses is related owned vessels. In the second quarter un-allocated expenses amounted to USD 0.6 million and comprised expenses not relating to the daily operation of our vessels. 3) Positively affected by realised FFA and bunker hedges corresponding to USD 2,158 totalling USD 2.1 million. 4) Negatively affected by realised FFA and bunker hedges corresponding to USD 7,881 totalling USD 14.2 million. 5) Negatively affected by realised FFA and bunker hedges corresponding to USD 248 totalling USD 0.7 million. Bulk Division The Bulk Division achieved an operating profit of USD 48.7 million for the third quarter of 2008. Bulk freight rates collapsed towards the end of the third and into the beginning of the fourth quarter. At the beginning of the third quarter, earnings per day for a Panamax bulk carrier amounted to approximately USD 79,000, whereas at the end of the third quarter the same earnings had dropped to approximately USD 32,000 per day. At the beginning of the fourth quarter, freight rates have dropped further to approximately USD 12-15,000 per day for a one-year T/C agreement. The outlook for bulk freight rates remains negatively impacted by the US and European recession and by large iron ore stocks in China. The number of available earning days in TORM's Panamax segment was 13% higher in the third quarter of 2008 than in the third quarter of 2007. Similarly, earnings were 85% up on the same quarter of 2007. Bulk Division Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Change 12 Q3 07 month -Q3 08 avg. Panamax (60-80,000 DWT) Available earning days 1,258 1,287 1,394 1,367 1,421 13% TCE per earning day(1) 27,019 27,443 36,909 50,568 49,888 85% 41,468 Operating days 546 559 565 585 556 2% Operating expenses per operating day(2) 4,580 5,392 6,940 6,647 5,521 21% 6,134 1) TCE = Gross freight income less bunker, commissions and port expenses. 2) Operating expenses is related owned vessels. In the second quarter un-allocated expenses amounted to USD 0.2 million and comprised expenses not relating to the daily operation of our vessels. Other activities Other (non-allocated) activities for the first nine months of 2008 consist of investments in joint ventures of USD 11.7 million, financial items of USD -49.8 million and tax of USD -1.4 million. Fleet development At the end of the third quarter of 2008, TORM's owned fleet totalled 64 vessels, 58 of which were tankers and six bulk carriers. For the remaining part of 2008, TORM has chartered in approximately 18 product tankers and approximately 11 bulk carriers, totalling a fleet of 93 vessels. During the third quarter of 2008, TORM sold and delivered TORM Wabash, realising a profit of USD 11 million. In the third quarter, TORM Gotland was sold for delivery at the beginning of the fourth quarter. As previously announced, the Company will realise a profit of USD 20 million from this sale. Own vessels T/C vessels Total 30 June Additions Disposals 30 Sep 30 Sep 2008 2008 2008 LR2 / Aframax 10.5 1 - 11.5 1.4 12.9 LR1 / 13.5 21.0 Panamax 7.5 - - 7.5 MR 30.0 - 1 29.0 1.0 30.0 SR 10.0 - - 10.0 2.0 12.0 Tanker 58.0 1 1 58.0 17.9 75.9 Panamax 6.0 - - 6.0 11.0 17.0 Bulk 6.0 - - 6.0 11.0 17.0 total 64.0 1 1 64.0 28.9 92.9 Planned fleet changes TORM has reconfirmed four MR vessels in the third quarter for delivery in 2011 and 2012, respectively. Follow link to view table: http://www.torm.com/wps/wcm/connect/public+content/Public/Investor+relations/ Releases/ (Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your Internet browser's URL address field. Remove the space if one exists.) Pools As at 30 September 2008, the three product tanker pools in which TORM participates comprised a total of 86 vessels, 50 of which were TORM vessels. To this should be added 23 vessels which TORM operates outside pools. By the end of 2008, the three pools are expected to comprise a total of 91 vessels, of which 56 will be TORM vessels. Results Third quarter 2008 The third quarter of 2008 showed a gross profit of USD 152 million, against USD 90 million for the corresponding quarter of 2007. Profit before depreciation (EBITDA) for the period was USD 145 million, against USD 79 million for the third quarter of 2007. The increase in both gross profit and EBITDA was primarily due to increased earnings as a result of a larger number of earning days and higher freight rates in the Tanker Division and higher freight rates in the Bulk Division. In the third quarter of 2008, depreciation amounted to USD 31 million. The operating profit for the third quarter of 2008 was USD 120 million, against USD 48 million in the same quarter of 2007. The Tanker and Bulk Divisions contributed USD 68 million and USD 49 million respectively, whereas USD 3 million is unallocated. In the third quarter of 2008, financial items amounted to USD -28 million, against USD -10 million in the corresponding quarter of 2007. Financial expenses for the third quarter of 2008 were impacted by an expense of approximately USD 11 million relating to fair value adjustment of financial derivatives (interest rate swaps, forward exchange contracts, etc.). Profit after tax for the third quarter was USD 91 million, including a profit of USD 11 million from the sale of vessels, against USD 35 million in the third quarter of 2007. Assets Total assets rose from USD 3,211 million to USD 3,243 million in the third quarter of 2008. Liabilities During the third quarter of 2008, the Company's net interest bearing debt was reduced from USD 1,689 million to USD 1,575 million. The item mainly comprised net borrowing in connection with the delivery of vessels and positive cash earnings during the period. More than half of the debt falls due in or after 2013. The Company has unutilised credit facilities and cash in excess of USD 700 million. Equity During the third quarter of 2008, equity rose from USD 1,211 million to USD 1,269 million as a result of earnings during the period. Equity as a percentage of total assets increased from 37.7% at 39 June 2008 to 39.1% as at 30 September 2008. As at 30 September 2008, TORM held 3,556,364 treasury shares, corresponding to 4.9% of the Company's share capital, which is unchanged compared with 30 June 2008. Subsequent events During the fourth quarter of 2008, TORM has delivered TORM Gotland to the buyer, realising a profit of USD 20 million in this quarter. Expectations TORM maintains a forecast pre-tax profit for 2008 of USD 355 - 370 million as announced on 11 August 2008 (announcement no. 16/2008). Sensitivity At 31 October 2008, approximately 63% of the earning days of the Company's product tankers were covered for the remainder of the year. For the Bulk Division, approximately 78% of the remaining operating days were covered for the rest of the year. In the Bulk Division, TORM solely uses physical agreements for hedging purposes, and has thus not been involved in the market for forward purchases or sales of freight agreements. Follow link to view table: http://www.torm.com/wps/wcm/connect/public+content/Public/Investor+relations/ Releases/ (Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your Internet browser's URL address field. Remove the space if one exists.) At 31 October, TORM had hedged the price of 20% of the remaining bunker requirement for 2008 and 12% for 2009. The market value of the contracts for 2008 was USD -4.1 million and for 2009 USD -21.1 million Safe Harbor Matters discussed in this release may constitute Forward-looking forward-looking statements. Forward-looking statements 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 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. Forward looking statements are based on management's current evaluation, and TORM is only under obligation to update and change the listed expectations to the extent required by law. The TORM share The price of a TORM share was DKK 126.2 at 30 September 2008, against DKK 167.1 at the beginning of the third quarter - equivalent to a decrease of DKK 40.9 (24%). Accounting policies The interim report for the third quarter of 2008 has been prepared using the same accounting policies as for the Annual Report 2007, except that the Company has changed its accounting policy for the recognition of investments in joint ventures so that these are recognised according to the equity method. Previously, joint ventures were recognised on a pro rata basis. The change in accounting policy is due to the fact that the Company finds it inappropriate to aggregate the items of joint ventures with items of entities that form an integral part of the Company's activities. The policy change has no effect on the income statement or on equity, but the profit for the year of joint ventures and the investment in these are presented in a single line item in the income statement and the balance sheet, respectively. Furthermore, the takeover balance sheet in connection with the acquisition of 50% of OMI in June 2007 has been finalised. As a result of the change in accounting policy and the finalised OMI takeover balance sheet, the operating profit and net cash flows for 2007 were reduced by USD 5.9 million and USD 11.6 million, respectively, and invested capital at 31 December 2007 was increased by USD 12.5 million. In addition, TORM has implemented IAS 34, "Interim Financial Reporting". The implementation has not led to any changes in the income statement or equity, but has caused minor changes to the presentation and a few additions to the disclosures. The accounting policies are described in more detail in the Annual Report 2007. The interim report for the third quarter of 2008 is unaudited, in line with the normal practice. Information Teleconference TORM will host a teleconference for financial analysts and investors on 21 November 2008 at 17:00 Copenhagen time (CET), reviewing the interim report for the third quarter of 2008. The conference call will be hosted by Mikael Skov, CEO, and Roland M. Andersen, CFO, and will be conducted in English. To participate, please call 10 minutes before the conference on tel.: +45 3271 4607 (from Europe) or +1,334,323 6201 (from the USA). The teleconference will also be webcast via TORM's website http://www.torm.com/ The presentation material can be downloaded from the website. Next reporting TORM's Annual Report for 2008 will be released on 11 March 2009. Statement by the Board of Directors and Management on the Interim Report The Board of Directors and Management have considered and approved the interim report for the period 1 January - 30 September 2008. The interim report, which is unaudited, has been prepared in accordance with the general Danish financial reporting requirements governing listed companies, including the measurement and recognition provisions in IFRS which are expected to be applicable for the Annual Report 2008. We consider the accounting policies applied to be appropriate, and in our opinion the interim report gives a true and fair view of the Group's assets, liabilities, financial position and of the results of operations and consolidated cash flows. Management Board of Directors Mikael Skov, CEO Niels Erik Nielsen, Chairman Roland M. Andersen, CFO Christian Frigast, Deputy Chairman Peter Abildgaard Lennart Arrias Margrethe Bligaard Bo Jagd Gabriel Panayotides Michael Steimler Nicos Zouvelos About TORM TORM is one of the world's leading carriers of refined oil products as well as a significant participant in the dry bulk market. The Company operates a combined fleet of more than 130 modern vessels, principally through a pooling cooperation with other respected shipping companies who share TORM's commitment to safety, environmental responsibility and customer service. TORM was founded in 1889. The Company conducts business worldwide and is headquartered in Copenhagen. TORM's shares are listed on the OMX Nordic Exchange Copenhagen (symbol: TRMD). For further information, please visit http://www.torm.com/. Income Statement Million USD Q1-Q3 Q1-Q3 Q3 2008 Q3 2007 2008 2007 2007 Revenue 336.6 208.1 878.2 549.4 773.6 Port expenses, bunkers and commissions -76.5 -46.0 -190.4 -122.5 -172.2 Freight and bunkers derivatives -15.9 0.3 -7.6 0.5 2.9 Time charter equivalent earnings 244.2 162.4 680.2 427.4 604.3 Charter hire -50.4 -42.4 -140.7 -112.9 -154.9 Operating expenses -41.5 -29.9 -130.2 -75.9 -115.5 Gross profit (Net earnings from shipping activities) 152.3 90.1 409.3 238.6 333.9 Profit from sale of vessels 10.8 0.0 62.8 0.0 0.0 Administrative expenses -22.6 -14.3 -62.1 -38.3 -55.0 Other operating income 4.3 3.0 11.0 9.0 15.2 Depreciation and impairment losses -31.3 -26.6 -93.1 -56.5 -89.1 Share of results of jointly controlled entities 6.1 -4.1 11.7 -5.6 -6.0 Operating profit 119.6 48.1 339.6 147.2 199.0 Financial items -28.3 -10.4 -49.8 629.7 605.2 Profit before tax 91.3 37.7 289.8 776.9 804.2 Tax -0.5 -2.9 -1.4 -1.7 -12.5 Net profit 90.8 34.8 288.4 775.2 791.7 Earnings per share, EPS Earnings per share, EPS (USD) 1.3 0.5 4.2 11.2 11.4 Earnings per share, EPS (DKK) *) 6.5 2.7 20.4 62.0 62.3 *) The key figures have been translated from USD to DKK using the average USD/DKK exchange change rate for the period in question. Income statement by quarter Million USD Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Revenue 208.1 224.2 255.0 286.6 336.6 Port expenses, bunkers and commissions -46.0 -49.7 -54.5 -59.4 -76.5 Freight and bunkers derivatives 0.3 2.4 -0.4 8.7 -15.9 Time charter equivalent earnings 162.4 176.9 200.1 235.9 244.2 Charter hire -42.4 -42.0 -46.0 -44.3 -50.4 Operating expenses -29.9 -39.6 -43.5 -45.2 -41.5 Gross profit (Net earnings from shipping activities) 90.1 95.3 110.6 146.4 152.3 Profit from sale of vessels 0.0 0.0 0.0 52.0 10.8 Administrative expenses -14.3 -16.7 -19.7 -19.8 -22.6 Other operating income 3.0 6.2 3.6 3.1 4.3 Depreciation and impairment losses -26.6 -32.6 -30.7 -31.1 -31.3 Share of results of jointly controlled entities -4.1 -0.4 -1.8 7.4 6.1 Operating profit 48.1 51.8 62.0 158.0 119.6 Financial items -10.4 -24.5 -9.9 -11.6 -28.3 Profit before tax 37.7 27.3 52.1 146.4 91.3 Tax -2.9 -10.8 0.1 -1.0 -0.5 Net profit 34.8 16.5 52.2 145.4 90.8 Assets Million USD 30 Sep. 30 Sep. 31 Dec. 2008 2007 2007 NON-CURRENT ASSETS Intangible assets Goodwill 89.2 87.9 89.2 Other intangible assets 3.1 10.5 7.5 Total intangible assets 92.3 98.4 96.7 Tangible fixed assets Land and buildings 3.8 0.4 4.2 Vessels and capitalized dry-docking 2,240.6 2,189.3 2,169.8 Prepayments on vessels 308.1 180.2 259.4 Other plant and operating equipment 7.6 7.0 5.9 Total tangible fixed assets 2,560.1 2,376.9 2,439.3 Financial fixed assets Investment in jointly controlled entities 113.8 0.0 0.0 Loans to jointly controlled entities 49.4 107.0 110.0 Other investments 9.9 11.0 11.0 Other financial assets 46.0 46.0 46.0 Total financial assets 219.1 164.0 167.0 TOTAL NON-CURRENT ASSETS 2,871.5 2,639.3 2,703.0 CURRENT ASSETS Bunkers 29.0 17.8 19.7 Freight receivables, etc. 127.6 77.4 90.0 Other receivables 56.7 44.1 37.0 Prepayments 9.2 10.4 4.2 Cash and cash equivalents 133.4 86.5 105.0 355.9 236.2 255.9 Non-current assets held for sale 15.1 0.0 0.0 TOTAL CURRENT ASSETS 371.0 236.2 255.9 TOTAL ASSETS 3,242.5 2,875.5 2,958.9 Equity and Liabilities Million USD 30 Sep. 30 Sep. 31 Dec. 2008 2007 2007 EQUITY Common shares 61.1 61.1 61.1 Treasury shares -18.1 -18.1 -18.1 Revaluation reserves 3.4 7.4 7.3 Retained profit 1,247.0 999.7 953.6 Proposed dividends 0.0 0.0 64.5 Hedging reserves -29.0 8.5 8.7 Translation reserves 4.1 4.1 4.1 TOTAL EQUITY 1,268.5 1,062.7 1,081.2 LIABILITIES Non-current liabilities Deferred tax liability 55.3 55.9 55.6 Mortgage debt and bank loans 1,514.6 829.1 884.6 Acquired liabilities related to options on vessels 20.9 31.6 31.6 Acquired time charter contracts 6.5 19.1 16.0 TOTAL NON-CURRENT LIABILITIES 1,597.3 935.7 987.8 Current liabilities Mortgage debt and bank loans 193.5 762.2 768.7 Trade payables 61.6 24.5 42.6 Current tax liabilities 15.2 14.3 14.5 Other liabilities 93.1 40.8 44.2 Acquired time charter contracts 11.5 20.2 16.0 Deferred income 1.8 15.1 3.9 TOTAL CURRENT LIABILITIES 376.7 877.1 889.9 TOTAL LIABILITIES 1,974.0 1,812.8 1,877.7 TOTAL EQUITY AND LIABILITIES 3,242.5 2,875.5 2,958.9 Equity 1 January - 30 September 2008 Million USD Common Treasury Retained Proposed Revaluation shares shares profit dividends reserves Equity at 1 January 2008 61.1 -18.1 953.6 64.5 7.3 Changes in equity Q1-Q3 2008: Exchange rate adjustment arising on translation of entities using a measurement currency different from USD - - - - - Reversal of deferred gain/loss on hedge instruments at the beginning of year - - - - - Deferred gain/loss on hedge instruments at the end of the period - - - - - Fair value adjustment on available for sale investments - - - - -1.3 Transfer to profit or loss on sale of available for sale investments - - - - -2.6 Net gains/losses recognised directly in equity 0.0 0.0 0.0 0.0 -3.9 Net profit for the period 288.4 Total recognized income/expenses for the period 0.0 0.0 288.4 0.0 -3.9 Purchase treasury shares, cost - - - - - Disposal treasury shares, cost - - - - - Dividends paid - - - -68.6 - Dividends paid on treasury shares - - 3.3 - - Exchange rate adjustment on dividends paid - - -4.1 4.1 - Share-based compensation - - 5.8 - - Total changes in equity Q1-Q3 2008: 0.0 0.0 293.4 -64.5 -3.9 Equity at 30 September 2008 61.1 -18.1 1,247.0 0.0 3.4 Table Cont Million USD Hedging Translation Total reserves reserves Equity at 1 January 2008 8.7 4.1 1,081.2 Changes in equity Q1-Q3 2008: Exchange rate adjustment arising on translation of entities using a measurement currency different from USD - 0.0 0.0 Reversal of deferred gain/loss on hedge instruments at the beginning of year -8.7 - -8.7 Deferred gain/loss on hedge instruments at the end of the period -29.0 - -29.0 Fair value adjustment on available for sale investments - - -1.3 Transfer to profit or loss on sale of available for sale investments - - -2.6 Net gains/losses recognised directly in equity -37.7 0.0 -41.6 Net profit for the period 288.4 Total recognized income/expenses for the period -37.7 0.0 246.8 Purchase treasury shares, cost - - 0.0 Disposal treasury shares, cost - - 0.0 Dividends paid - - -68.6 Dividends paid on treasury shares - - 3.3 Exchange rate adjustment on dividends paid - - 0.0 Share-based compensation - - 5.8 Total changes in equity Q1-Q3 2008: -37.7 0.0 187.3 Equity at 30 September 2008 -29.0 4.1 1,268.5 Equity 1 January - 30 September 2007 Million USD Common Treasury Retained Proposed Revaluation shares shares profit dividends reserves Equity at 1 January 2007 61.1 -18.1 574.5 73.9 579.8 Changes in equity Q1-Q3 2007: Exchange rate adjustment arising on translation of entities using a measurement currency different from USD - - - - - Reversal of deferred gain/loss on hedge instruments at the beginning of year - - - - - Deferred gain/loss on hedge instruments at the end of the period - - - - - Fair value adjustment on available for sale investments - - - - 70.9 Transfer to profit or loss on sale of available for sale investments - - - - -643.3 Net gains/losses recognised directly in equity 0.0 0.0 0.0 0.0 -572.4 Net profit for the period 775.2 Total recognized income/expenses for the period 0.0 0.0 775.2 0.0 -572.4 Purchase treasury shares, cost - - - - - Disposal treasury shares, cost - - - - - Extraordinary dividends paid - - -369.2 - - Dividends paid - - - -76.4 - Dividends paid on treasury shares - - 21.7 - - Exchange rate adjustment on dividends paid - - -2.5 2.5 - Total changes in equity Q1-Q3 2007: 0.0 0.0 425.2 -73.9 -572.4 Equity at 30 September 2007 61.1 -18.1 999.7 0.0 7.4 TABLE CONT. Million USD Hedging Translation Total reserves reserves Equity at 1 January 2007 5.6 4.0 1,280.8 Changes in equity Q1-Q3 2007: Exchange rate adjustment arising on translation of entities using a measurement currency different from USD - 0.1 0.1 Reversal of deferred gain/loss on hedge instruments at the beginning of year -5.6 - -5.6 Deferred gain/loss on hedge instruments at the end of the period 8.5 - 8.5 Fair value adjustment on available for sale investments - - 70.9 Transfer to profit or loss on sale of available for sale investments - - -643.3 Net gains/losses recognised directly in equity 2.9 0.1 -569.4 Net profit for the period 775.2 Total recognized income/expenses for the period 2.9 0.1 205.8 Purchase treasury shares, cost - - 0.0 Disposal treasury shares, cost - - 0.0 Extraordinary dividends paid - - -369.2 Dividends paid - - -76.4 Dividends paid on treasury shares - - 21.7 Exchange rate adjustment on dividends paid - - 0.0 Total changes in equity Q1-Q3 2007: 2.9 0.1 -218.1 Equity at 30 September 2007 8.5 4.1 1,062.7 Cash flow statement Million USD Q3 Q3 Q1-Q3 Q1-Q3 2008 2007 2008 2007 2007 Cash flow from operating activities Operating profit 119.7 48.1 339.7 147.2 199.0 Adjustments: Reversal of profit from sale of vessels -10.8 0.0 -62.8 0.0 0.0 Reversal of depreciation and impairment losses 31.3 26.6 93.1 56.5 89.1 Reversal of share of results of jointly controlled entities -6.1 4.1 -11.7 5.6 6.0 Reversal of other non-cash movements -0.8 0.5 -7.8 3.3 2.7 Dividends received 0.0 0.0 1.4 1.3 1.3 Dividends received from joint controlled entities 1.5 0.1 3.0 2.1 2.6 Interest received and exchange rate gains 3.7 9.1 16.2 23.4 19.9 Interest paid -20.2 -27.4 -62.5 -50.9 -70.8 Income taxes paid 0.4 -0.2 -1.2 0.6 -9.5 Change in inventories, accounts receivables and payables -7.5 -54.6 -43.3 -62.9 -52.4 Net cash inflow/(outflow) from operating activities 111.2 6.3 264.1 126.2 187.9 Cash flow from investing activities Investment in tangible fixed assets -112.6 -16.5 -293.7 -160.5 -252.2 Investment in equity interests and securities 0.0 0.2 -133.5 0.0 0.0 Loans to jointly controlled entities 64.0 906.0 64.0 -19.4 -31.3 Payment of liability related to options on vessels -11.0 0.0 -11.0 0.0 0.0 Acquisition of enterprises and activities 0.0 -808.6 0.0 -808.6 -810.2 Sale of equity interests and securities 0.0 32.7 17.4 736.9 736.9 Sale of non-current assets 63.0 0.0 131.6 0.1 0.2 Net cash inflow/(outflow) from investing activities 3.4 113.8 -225.2 -251.5 -356.6 Cash flow from financing activities Borrowing, mortgage debt and other financial liabilities 0.0 873.8 1,007.4 1,694.7 1,807.9 Repayment/redemption, mortgage debt -59.5 -977.7 -952.6 -1,090.5 -1,141.8 Dividends paid 0.0 -351.3 -65.3 -424.0 -424.0 Purchase/disposals of treasury shares 0.0 0.0 0.0 0.0 0.0 Cash inflow/(outflow) from financing activities -59.5 -455.2 -10.5 180.2 242.1 Increase/(decrease) in cash and cash equivalents 55.1 -335.1 28.4 54.9 73.4 Cash and cash equivalents, beginning balance 78.3 421.6 105.0 31.6 31.6 Cash and cash equivalents, ending balance 133.4 86.5 133.4 86.5 105.0 Cash flow statement per quarter Million USD Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Cash flow from operating activities Operating profit 48.1 51.8 62.0 158.0 119.7 Adjustments: Reversal of profit from sale of vessels 0.0 0.0 0.0 -52.0 -10.8 Reversal of depreciation and impairment losses 26.6 32.6 30.7 31.1 31.3 Reversal of share of results of jointly controlled entities 4.1 0.4 1.8 -7.4 -6.1 Reversal of other non-cash movements 0.5 -0.6 -4.6 -2.4 -0.8 Dividends received 0.0 0.0 0.2 1.2 0.0 Dividends received from joint controlled entities 0.1 0.5 1.3 0.2 1.5 Interest received and exchange rate gains 9.1 -3.5 9.7 2.8 3.7 Interest paid -27.4 -19.9 -23.9 -18.4 -20.2 Income taxes paid -0.2 -10.1 -1.3 -0.3 0.4 Change in inventories, accounts receivables and payables -54.6 10.5 -12.2 -23.6 -7.5 Net cash inflow/(outflow) from operating activities 6.3 61.7 63.7 89.2 111.2 Cash flow from investing activities Investment in tangible fixed assets -16.5 -91.7 -102.9 -78.2 -112.6 Investment in equity interests and securities 0.2 0.0 -118.4 -15.1 0.0 Loans to jointly controlled entities 906.0 -11.9 0.0 0.0 64.0 Payment of liability related to options on vessels 0.0 0.0 0.0 0.0 -11.0 Acquisition of enterprises and activities -808.6 -1.6 0.0 0.0 0.0 Sale of equity interests and securities 32.7 0.0 0.0 17.4 0.0 Sale of non-current assets 0.0 0.1 0.1 68.5 63.0 Net cash inflow/(outflow) from investing activities 113.8 -105.1 -221.2 -7.4 3.4 Cash flow from financing activities Borrowing, mortgage debt and other financial liabilities 873.8 113.2 137.6 869.8 0.0 Repayment/redemption, mortgage debt -977.7 -51.3 -8.3 -884.8 -59.5 Dividends paid -351.3 0.0 0.0 -65.3 0.0 Purchase/disposals of treasury shares 0.0 0.0 0.0 0.0 0.0 Cash inflow/(outflow) from financing activities -455.2 61.9 129.3 -80.3 -59.5 Increase/(decrease) in cash and cash equivalents -335.1 18.5 -28.2 1.5 55.1 Cash and cash equivalents, beginning balance 421.6 86.5 105.0 76.8 78.3 Cash and cash equivalents, ending balance 86.5 105.0 76.8 78.3 133.4 DATASOURCE: A/S Dampskibsselskabet TORM CONTACT: Contact: A/S Dampskibsselskabet TORM, Tuborg Havnevej 18, DK-2900 Hellerup, Denmark. Telephone: +45-39-17-92-00, Mikael Skov, CEO, Roland M. Andersen, CFO .

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TRMD Thames Riv. C$