Aktieselskabet Dampskibsselskabet Torm

Company Name: Aktieselskabet Dampskibsselskabet Torm
Stock Market: NASDAQ (TRMD)
Industry Sector: Water Transportation
Yearly Revenue: $819 million (in 2007)
Operating Income: $205.0 million (in 2007)
Net Income: $791.7 million (in 2007)
Total Asset: $878 million (in 2007)

Key People: Klaus Kjaerulff (Chief Executive Officer and Managing Director), Roland M. Andersen (Chief Financial Officer), Mikael Skov (Chief Operating Officer), Niels Erik Nielsen (Chairman of our Board of Directors)

Headquarters Address: Tuborg Havnevej 18, DK-2900 Hellerup, Denmark
Number of Employees: 339

Company Overview

Aktieselskabet Dampskibsselskabet Torm translated as A/S Steamship Company Torm (“TORM”), a Danish shipping company, was founded under Danish Companies in 1889. TORM is engaged in the operation and ownership of bulk carriers and product tankers. The company also provided offshore marine service vessels and liners, but ceased these services in December 2003 and September 2002, respectively. Their product tankers hold refined products, such as jet fuel, gas oil, naphtha, gasoline, and diesel oil.

TORM provide transportation services using a fleet of vessels that they own, charter on long and short term time charters, or commercially supervise as the pool manager or in contracts with third party owners. The company charters bulk vessels and tankers, because the pool they manage needs these vessels.

TORM acquired the OMI Corporation, a U.S. shipping company located in Stamford, Connecticut, in April 2007 in cooperation with Teekay Shipping Corporation. The company took over 26 product tankers, 13 of which are Handy size tankers, 2 LR1 tankers and 11 MR tankers.

Company operations usually develop and involve the transfer, disposal and treatment of hazardous and non-hazardous wastes that need to conform to the U.S. Resource Conservation and Recovery Act (“RCRA”) requirements or a comparable state, along with any local and foreign requirements. From time to time, the company arrange the disposal of hazardous and non-hazardous substances at offsite disposal facilities.

Current Financial Overview

TORM’s net profits for the year 2007 were increased by 238% or USD 792 million from USD 235 million in 2006, resulting in earnings per share (EPS) of USD 11.4 in 2007 against USD 3.4 in 2006. For the year 2007, the company’s net profit includes earnings amounting to USD 643 million for the sale of the Dampskibsselskabet Norden A/S shares. This gain is included within Financial Income Operating Profit in 2007, decreased by 15% from USD 242 million in 2006 down to USD 205 million in 2007. The low profit in 2007 compared to 2006 was due to the lower freight rates in the MR and LR2 business areas, bigger costs and depreciation per day as a result of the renewal and expansion of the chartered vessels and owned fleet, primarily through the acquisition of OMI, along with restructuring costs related to the acquisition.

The company’s total assets were increased by USD 819 million in 2007 from USD 604 million in 2006. The significant developments behind this increase in total assets was due to the acquisition of OMI, a decrease in other investments due to the sale of the shares in NORDEN, and an increase in cash and cash equivalents.