Announcement No. 1, 2015

Feb 25 2015

Difficult market environment

"Early 2014 an undercurrent of optimism for improvements of the global economy and shipping markets, in particular in dry bulk, prevailed. However, reality proved this optimism misplaced and 2014 turned out to be considerably more difficult and demanding than originally expected,” says Jan Kastrup-Nielsen, President and CEO.

In Q4 2014, EBITDA from continuing operations amounted to USD (9.5)m, down on USD (2.1)m in Q3 and USD (1.5)m in Q4 2013. At year-end 2014, the Baltic Dry Index (BDI) stood at 782 compared to 2,277 at year-end 2013.

J. Lauritzen's net results for 2014 were USD (165.7)m compared to USD (284.6)m in 2013. The results were in line with expectations expressed in our announcement to Oslo Børs in December 2014. Results were unsatisfactory in financial terms but an outcome consistent with a very difficult year.

The results were heavily impacted by special items totalling USD (118.9)m, in particular due to impairment and provisions totalling USD (161.0)m. In 2013, special items totalled USD (136.1)m also mainly related to impairment. Furthermore, net results for 2014 included USD 18.7m profit from discontinued operations compared to USD (47.8)m in 2013.

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