REVISED FORECAST FULL YEAR RESULT 2007
11/26/2007 2:00 AM EST
- Forecast full year 2007 MSEK 50 (previous forecast MSEK 65)
- Per share SEK 1.05 (previous forecast 1.36)
In the forecast presented in the third quarter report it was stated that freight levels of USD 28,000 per day in the product tanker market were required to meet the forecasted result of MSEK 65. The expected market upturn has not materialized and the freight levels have so far been substantially lower.
All the existing vessels in the company’s fleet are chartered out on long term contracts at fixed day rates. Some of these contracts contain profit share clauses, which mean that Concordia Maritime receives a share of the earnings above the base rate in the contract. This profit share element is adjusted down to zero for the fourth quarter and thus the forecast for the full year is adjusted downwards to MSEK 50 (previous forecast MSEK 65) corresponding to SEK 1.05 per share (previous forecast SEK 1.36).
The operation of the company has otherwise developed well and according to plan.
Graph MR Earnings, please see attached pdf.