On a quarterly basis, TORM calculates the long-term earnings potential of its fleet based on discounted expected future cash flows. The calculated value of the fleet at 30 June 2010 supports book value.
During the second quarter of 2010, net interest-bearing debt increased to USD 1,691 million from USD 1,622 million at 31 March 2010. The increase in debt is due to borrowing in connection with the newbuilding programme. More than 74% of the debt is due after 2012.
Total equityIn the second quarter of 2010, equity decreased from USD 1,248 million at 31 March 2010 to USD 1,220 million, which was primarily due to the loss during the period. Equity as a percentage of total assets was 38% at 30 June 2010, compared to 39% at 31 March 2010. At 30 June 2010, TORM held 3,461,580 treasury shares, corresponding to 4.8% of the Company's share capital, which is unchanged since 31 March 2010. Liquidity TORM's undrawn credit facilities and cash totalled about USD 600 million at the end of the second quarter of 2010. Outlook TORM forecasts a loss before tax of USD 40-60 million for 2010. Coverage At 30 June 2010, TORM had covered 33% of the remaining earning days for 2010 in the Tanker Division at USD/day 16,470 and 81% of the remaining earning days in the Bulk Division at USD/day 19,725. The table below shows the figures for 2010 for the period 1 July to 31 December 2010, and full year 2011 and 2012.
|T/C in days||T/C in costs (USD/day)|
|Total physical days (owned + T/C in)||Covered days|
|Coverage %||Coverage rates (USD/day)|
|Fair value of freight rate contracts that are mark-to-market in the income statement (USD m):|
|Contracts not included above||-1.2|
|Contracts included above||0.2|
|Actual no. of days can vary from projected no. of days primarily due to vessel sales and timing of vessel deliveries. T/C in costs do not include potential extra payments from profit split arrangements.|