Nordic Shipholding — Earnings Release 2013

Mar 11, 2014

Company Announcement 4/2014

Published via NASDAQ OMX on MArch 11, 2014, 2014-03-11 22:47 CET (GLOBE
NEWSWIRE) --

March 11, 2014

NORDIC SHIPHOLDING A/S
Company Announcement

Nordic Shipholding A/S – Annual Report 2013

Company Announcement: 4/2014

Published via NASDAQ OMX on March 11, 2014

In 2013, Nordic Shipholding A/S reaped a gain of USD 19.4 million, chiefly from
a one-time USD 28.6 million gain from restructuring. Excluding this gain, the
Group realised a loss of USD 9.1 million.

Nordic Shipholdings’ Board of Directors has today approved the annual report
for 2013.

· The capital structure was significantly improved following a
restructuring in December 2013.

· As a result of the restructuring, the outstanding debt as at 19
December 2013 was reduced by USD 72.1 million and equity increased by USD 74.1
million. The remaining loan of USD 100 million was re-financed into a new
7-year facility.

· The Group’s 2013 net result was USD 19.4 million, after accounting
for a one-off gain from restructuring of USD 28.6 million. Excluding this
one-off gain of USD 28.6 million, the Group incurred a net loss for 2013 of USD
9.1 million.

· Gross revenue earned by the 6 vessels reached USD 60 million, which
resulted in a TCE revenue of USD 25.9 million and an EBITDA of USD 3.6 million.
Equity improved significantly from USD -37.4 million at the beginning of the
year to USD 28.2 million as at 31 December 2013.

· The restructuring which was completed in late December 2013 provided
the Group with the much needed liquidity and a sturdier capital structure to
grow the business. The product tanker segment is showing signs of recovery but
is still fragile.

· The impairment test did not reveal a need for further writedowns in
2013.

· At the forthcoming Annual General Meeting, the Board of Directors
will propose that the Annual Report for 2013 and subsequent years be prepared
and presented in the English language only. The Board of Directors expects this
proposal to be approved, and consequently the Annual Report for 2013 has been
prepared in the English language only.

· FORECAST 2014

· For 2014, the Group’s 6 vessels are expected to remain commercially
deployed on a pool basis. While rates in early 2014 have improved slightly
compared to 2013, the TCE revenue from the 6 product tankers is expected to be
in the region of USD 27.0 – 30.0 million.

· 2014 will also see the Group changing its technical manager such that
2 new managers will handle 3 vessels each. This change will entail certain
one-off costs and some loss of revenue resulting from the vessels’ loss of oil
major vetting approvals for a short time. The Board considers the change in
the technical manager to be net positive for the Group in the longer term
savings.

· Taking the above into account, the Group expects EBITDA (earnings
before interest, tax, depreciation and amortization) to be in the range of USD
9.0 – 12.0 million.

· The result before tax, subject to unforeseen circumstances, is
expected to reach an accounting breakeven with a result between USD -2.0
million and USD 1.0 million before any write-downs on vessels. The Group does
not expect any write-downs of vessels’ carrying value unless significant
weakness in the product tanker sector sets in.

· In terms of cash flow, there is no amortisation of the long-term loan
in 2014. However, the short-term working capital will mature in December 2014.
The Group’s net operating cash flows and receipt of certain insurance
receivables will be used to pay off this short-term debt. The Group’s cash
flows is expected to be between USD -1.0 million and USD 2.0 million, prior to
any cash sweep to the lending banks. Under the new loan arrangement with the
lending banks, cash in excess of USD 6.0 million will be used to pay down the
long-term facility. No cash sweep is expected in 2014 except for approximately
USD 1.0 million as at 31 December 2014.

· The forecast for 2014 is based on various assumptions as set out in
the Annual Report, including estimated daily time-charter equivalent rates of
USD 14,000 for the handy tankers and USD 15,200 for the LR1 vessel, and
interest expense based on a 3 month LIBOR of 0.5%

“Post restructuring, the board considers Nordic Shipholding as an attractive
platform to grow and in the coming year, we will seek and assess suitable
investment opportunities in the product tanker segment to expand the Company”
says Chairman of the Board of Directors, Knud Pontoppidan.

For further information please contact:

Knud Pontoppidan, Chairman of the board, Nordic Shipholding A/S: +45 4058 3640

     Knud Pontoppidan, Chairman of the Board, Nordic Shipholding A/S