Interim financial report for the first half of 2011

8/10/2011 10:08 AM EST

J. Lauritzen A/S (JL) experienced a challenging start 
to the year even though a sizeable part of forecast 
revenues were secured by contracts. The result for 
the period was slightly better than expected, however 
strongly impacted by weakening of markets and 
counterparty defaults.

EBITDA totaled USD 65.4m for the first six months of 
2011 compared to USD 153.6m in 2010, which included 
non-recurring income from counterparty settlements. 

Operating income was USD 29.6m (USD 119.6m in the 
first half of 2010) and JL's share of results 
amounted to USD 3.6m compared to USD 99.6m in 2010. 

Return on invested capital (ROIC) was 3.1% compared 
to 13.2% in the same period in 2010. Excluding 
installments on vessels under construction return on 
invested capital amounted to 4.1% compared to 17.5% 
in the first half of 2010. 

Cash and securities amounted to USD 156m at the end 
of June 2011 (USD 224m at year-end 2010). Invested 
capital amounted to USD 2,342 up from USD 2,033m at 
period-end 2010. 
JL's remaining newbuilding program is fully-financed 
and no refinancing is required until 2015.   

Main events during the first six months:
·	JL successfully completed its offshore 
strategy by securing a long-term contract for 
Accommodation and Support Vessel Dan Swift with 
Petrobras and thus Lauritzen Offshore's four vessels 
are all on long-term contracts with the Brazilian oil 
major. 
·	JL took delivery of eight bulk carriers (four 
capesize, three handymax and one handysize), two 
fully pressurized gas carriers and two MR3 product 
tankers. 
·	Three gas carriers were sold. Purchase option 
for a bulk carrier was declared and the vessel was 
subsequently sold.
·	A Korean charterer went into receivership and 
subsequently redelivered four long-term time 
chartered handymax bulk carriers to Lauritzen Bulkers 
and announced the intention not to fulfill 
contractual obligations to take delivery of a long-
term time chartered capesize bulk carrier newbuilding 
in September 2011.
·	Charter parties for two long-term time 
chartered capesize bulk carriers to a Chinese 
charterer were renegotiated and the new contractual 
obligations are fulfilled.

Uncertainties regarding the world economy and 
continuous deliveries of new tonnage, in particular 
bulk carriers, are anticipated to maintain freight 
markets at a low level for the balance of 2011. Due 
to these uncertainties and counterparty defaults, the 
result for the full year 2011 is expected to be lower 
than earlier expected and significantly down compared 
to the 2010 result in which one-offs of USD 73.8m in 
total were included.


Further information:  Torben Janholt, President & 
CEO, on phone + 45 21 63 92 32 or Birgit Aagaard-
Svendsen, Executive Vice President & CFO, on phone + 
45 33 96 84 00

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