Aarhus Oliefabrik A/S

Transcription

1 Aarhus Oliefabrik A/S M. P. Bruuns Gade 27 P. O. Box 50 DK-8100 Aarhus C Denmark Telephone: Direct line: Fax: Telex: ehh@aarhus.com palmf dk CVR no Giro st quarter report 2002 Aarhus Oliefabrik A/S CVR no Announcement no 8/2002 to the Copenhagen Stock Exchange Contact persons: Erik Højsholt, Managing Director, CEO Esben Vibe, Director, CFO Telephone: Telephone: Mobile: Mobile: The announcement is available at Aarhus Oliefabrik s home page: Requests for a copy of the announcement can be directed to: investor@aarhus.com Please visit our new Investor Relations section at the address:

2 Page 2 of 10 1 st quarter report 2002 Today, Wednesday 29 May 2002, the Board of Directors of Aarhus Oliefabrik A/S considered and adopted the accounts for the first three months of Highlights For the first three months of 2002, consolidated post-tax profits amounted to DKK 22 million, which was equal to the result for the same period in 2001 and in accordance with expectations. Consolidated value-added totalled DKK 334 million for the first three months of 2002, compared with DKK 350 million for the first three months of Consolidated operating income amounted to DKK 47 million for the first three months of 2002, compared with DKK 55 million for the same period last year. Return on invested capital was 7.4% for the period, compared with 8.7% for the same period in As previously announced, consolidated operating income for the full year is expected to amount to DKK million - equal to a 9% return on invested capital. Consolidated post-tax profits for the full year are expected to amount to DKK million.

3 Page 3 of 10 Accounting policy revisions The company s accounting policies have been revised in accordance with the new Danish Annual Accounts Act and new accounting standards. The main revisions are as follows: Own shares Own shares are charged to shareholders equity. Dividend Allocated dividend on the profit for the year is shown as a shareholders equity item. Financial contracts According to company policy, raw material and currency exposure is hedged upon conclusion of contracts in order to secure the margin at the contract dates. As a result, contracts and stocks as well as financial contracts to hedge these are valued at fair market prices. Adjustments are booked in the profit and loss account. This is to ensure correct accrual accounting of contracts with reference to section 11 (3) of the Danish Annual Accounts Act a true and fair view. Market value adjustments of financial contracts to secure future transactions are taken directly to shareholders equity. Goodwill Goodwill is capitalised and written off over a period not exceeding 20 years. According to accounting standard 18, goodwill acquired before 1 January 2002 is not capitalised. Mortgage debt restructuring costs Capitalised costs in connection with restructuring of mortgage debt, DKK 14.9 million, are no longer included in the assets and have been depreciated directly against shareholders equity at the beginning of Project engineering costs In accordance with the accounting policy revisions, internal project engineering costs of new plants and investments as of 2002 are capitalised on the projects in question. For the first three months of 2002 this revision has resulted in a DKK 2 million improvement of the result. It should be noted that due to insufficient data, comparative figures have not been incorporated and year-start adjustment of these costs has not been made.

4 Page 4 of 10 Year-start adjustments The revision of the accounting policies has resulted in a DKK 8 million revaluation of the shareholders equity as at 1 January 2002 according to the following specification: Year-start adjustments as at 1 January 2002 DKKm Own shares write-off 28.2 Dividend write-back to shareholders equity 48.0 Financial instruments revaluation 3.1 Capitalised costs write-off 14.9 Net revaluation 8.0

5 Page 5 of 10 Consolidated key figures and ratios 1 st quarter 1 st quarter DKK million Turnover 1,139 1,113 Value added Operating income Income from participating interests, before tax 7 2 Net financing costs Profit on ordinary activities, before tax and minority interests Interim profit Total assets 3,712 3,751 Shareholders equity as at 31 March 1,570 1,434 Capital investments Depreciation Profit margin ratio Equity ratio Return on invested capital (ROIC) Average no. of shares (1,000 shares) 4,000 4,000 Market price, year-end Equity value per share Earnings per share Shareholders equity developments: Shareholders equity as at 1 January 1,531 * 1,355 Interim profit Exchange rate adjustments in respect of subsidiaries and associates Adjustment of financial instruments 7 - Total developments Shareholders equity as at 31 March 1,570 1,434 *A net revaluation of DKK 8 million has been added to the shareholders equity as at 1 January, due to the implementation of the new Danish Annual Accounts Act (see the specification on page 3). Consolidated profits for the first three months of 2002 amounted to DKK 22 million the same as in the first quarter of 2001 and in accordance with expectations. Operations generated an income of DKK 47 million for the first three months of 2002, compared with DKK 55 million for the same period last year a decline of DKK 8 million.

6 Page 6 of 10 Profit on ordinary activities, before tax and minority interests, amounted to DKK 34 million for the first three months of 2002, compared with DKK 30 million for the first three months of The improvement is due to lower financing costs and higher contributions from the associates primarily United Plantations Berhad, Malaysia. Shareholders equity increased by DKK 39 million relative to the position as at 1 January The exchange rate adjustments in respect of subsidiaries and associates, as at 31 March 2002, exerted a positive effect of DKK 10 million on shareholders equity, due to marginal increases in the values of the following currencies: the US Dollar (USD), Malaysian Ringgit (MYR) and Mexican Peso (MXN). According to a revaluation of financial instruments to hedge future transactions, a DKK 7 million increase has been added to shareholders equity during the first three months of As at 29 May 2002, the holding of own shares totalled 155,646 shares equal to 3.9% of the share capital. As at 31 March 2002, the market price of the company s own shares was DKK 13.8 million above cost. Comments on developments in the period under review Developments in consolidated turnover are affected by three factors: 1) Raw material price levels, 2) movements in business volumes (tonnes) and 3) developments in exchange rates when translating the foreign companies turnover figures into DKK. For the first three months of 2002, consolidated turnover increased by DKK 26 million over the same period in 2001 due to higher raw material prices and marginally higher rates of exchange. Part of the increase was counteracted by the effects of a decline in business volumes at Aarhus Olie in Denmark and Aarhus Inc. in the USA; however, it should be noted that the business volume of Aarhus Olie in Denmark was extraordinarily large for the first three months last year. In comparing the interim profits of 2002 and 2001, it should be noted that Maritex AS in Norway, which is dealt with as an associate as from 1 October 2001, accounted for a turnover of DKK 11 million for the first three months of 2001 and the activities in Sri Lanka have been reduced, relative to last year. The consolidated value-added decline totalled DKK 16 million for the first three months of 2002, compared with the same period in Aarhus Olie in Denmark and Aarhus Inc. in the USA both experienced a value-added decline in business volumes whereas the value-added decline at Anglia Oils Limited in the United Kingdom was due to lower margins as a result of severe competition. Operating income declined from DKK 55 million for the first three months of 2001 to DKK 47 million for the first three months of The decline is primarily attributable to Anglia Oils Limited in the United Kingdom whereas operating income at Aarhus Olie in Denmark,

7 Page 7 of 10 Aarhus Inc. in the USA and Santa Lucia in Mexico was at the level attained in the same period last year. For the first three months of 2002, capital participations, before tax, comprising the group s share of the associates profits, totalled DKK 7 million an improvement over the DKK 2 million profit for the same period in United Plantations Berhad in Malaysia accounts for the bulk of the increase, which is due to higher palm oil prices. Consolidated financing costs totalled DKK 21 million for the first three months of 2002 a decline of DKK 7 million relative to the same period last year. Group companies Aarhus Olie, Denmark 1 st quarter 1 st quarter DKK million Turnover Value added Operating income Pre-tax profit on ordinary activities Interim profit Total assets as at 31 March 1, ,088.5 Shareholders equity as at 31 March Capital investments Profit margin ratio (%) Return on invested capital (ROIC) (%) Total business volume (tonnes) 39,104 46,280 For the first three months of 2002, Aarhus Olie in Denmark recorded a profit of DKK 12.7 million an improvement of DKK 2.8 million over the profit for the first three months of In comparing this year s interim profit with last year, it should be noted that the implementation of the new accounting policy applying to internal project engineering costs in connection with new plants and investments has resulted in an improvement of the interim profit for 2002 in the region of DKK 2 million. Despite the decline in volumes, the interim profit nevertheless improved. This was due partly to higher margins as a result of rising cocoa prices partly to reduced financing costs.

8 Page 8 of 10 Anglia Oils Limited, United Kingdom 1 st quarter 1 st quarter DKK million Turnover Value added Operating income Pre-tax profit on ordinary activities Interim profit Total assets as at 31 March Shareholders equity as at 31 March Capital investments Profit margin ratio Return on invested capital (ROIC) Total business volume (tonnes) 80,896 78,165 For the first three months of 2002, Anglia Oils Limited recorded a profit of GBP 0.7 (DKK 8.3 million) which was DKK 4.4 million below the profit for the same period last year totalling DKK 12.7 million. The decline is due to harsh competition on the British market. In order to maintain its market share, Anglia Oils have had to accept margins below the level attained in the same period last year. For the first three months of 2002, the return on invested capital was 6.7% at Anglia Oils. The decline in shareholders equity is due to a dividend payment to the parent company in Aarhus Inc., USA 1 st quarter 1 st quarter DKK million Turnover Value added Operating income Pre-tax profit on ordinary activities Interim profit Total assets as at 31 March Shareholders equity as at 31 March Capital investments Profit margin ratio Return on invested capital

9 Page 9 of 10 Total business volume (tonnes) 26,404 27,906 For the first three months of 2002, Aarhus Inc. recorded a profit of USD 0.4 million (DKK 3.3 million), which was below the profit attained for the first three months of 2001 (DKK 5.3 million). The reason for the decline is that in 2002 the company began to set aside provisions for tax as the tax losses in previous years have now been utilised. The decline in shareholders equity is due to a dividend payment to the parent company in Santa Lucia, S.A. de C.V., Mexico 1 st quarter 1 st quarter DKK million Turnover Value added Operating income Pre-tax profit on ordinary activities Interim profit before minority interests Aarhus Olie s share of interim profit Total assets as at 31 March Shareholders equity as at 31 March Aarhus Olie s share of equity as at 31 March Capital investments Profit margin ratio Return on invested capital (ROIC) Total business volume (tonnes) 31,219 30,156 For the first three months of 2002, Santa Lucia, S.A. de C.V. recorded a profit, which was marginally over the profit for the same period last year. The Mexican interest level continues declining in This led to a reduction in the company s financing costs for the first three months of 2002, compared with the same period last year. Aarhus Olie s share of the interim profit amounted to DKK 2.8 million and was in accordance with expectations. Minor subsidiaries performed as anticipated.

10 Page 10 of 10 Associates The consolidated profits include post-tax contributions from United Plantations Berhad in Malaysia, Maritex AS in Norway and BSP-Pharma A/S totalling DKK 5.2 million, the bulk of which is attributable to United Plantations Berhad. For the first three months of 2002, United Plantations Berhad recorded a post-tax profit of MYR 7.6 million (DKK 17.1 million) an improvement of MYR 4.9 million (DKK 11.1 million) over the same period last year. The improvement is due to significantly higher prices of palm oil in the first quarter of 2002, compared with the same period last year. At BSP-Pharma a company established in joint venture with the pharmaceutical company Astion A/S the development of new products for treating rheumatic diseases and eczema is progressing according to schedule. The development of the new products is expected to be concluded within the next two years. Outlook for the full year Consolidated post-tax profits for 2002 are expected to remain the same as expressed on the company s annual general meeting on 24 April For the full year, consolidated operating income is expected to amount to DKK million and consolidated post-tax profits to DKK million. The figures are based on a business volume in tonnes for the full year at the same level or marginally higher than the volume processed in 2001 which amounted to DKK 4.9 million. The turnover expressed in Danish Kroner depends to a significant extent on the raw material price level. Future expectations are in accordance with the strategy plan, which aims at a consolidated operating income equivalent to a 13% return on invested capital. Kjeld Ranum Chairman Erik Højsholt Managing Director, CEO