• 2018 August 17 13:21

    TORM posts H1 2018 interim results

    “Despite healthy end-user consumption, the product tanker market remained under pressure in the second quarter of 2018. Nevertheless, I am pleased to see TORM outperformed commercially when comparing to relevant benchmarks and peers,” Executive Director Jacob Meldgaard is quoted by the company's press service as saying.

    “We have continued to take steps to further renew and optimize our fleet by taking delivery of one LR2 newbuilding in the second quarter and exercising newbuilding options for three MR vessels. In addition, we have to date decided to install scrubbers on 14 of our vessels to prepare for the expected consequences of the IMO sulfur emission directive that will come into force in 2020,” Meldgaard said.

    EBITDA for the second quarter of 2018 was USD 29.4m (2017, same period: USD 35.7m). The loss before tax amounted to USD 8.6m (2017, same period: USD -1.5m). Cash flow from operating activities was positive with USD 25.1m in the second quarter of 2018 (2017, same period: USD 38.5m) and loss per share (EPS) was 12 cents (2017, same period: -3 cents). Return on Invested Capital (RoIC) was 0.1% (2017, same period: 2.1%).
     
    EBITDA for the half year ended 30 June 2018 was USD 66.7m (2017, same period: USD 79.8m). The result before tax for the first six months of 2018 was a loss of USD 7.5m (2017, same period: profit of USD 3.3m). Cash flow from operating activities was positive with USD 43.0m in the first six months of 2018 (2017, same period: USD 65.3m) and loss per share (EPS) was 12 cents (2017, same period: 5 cents). Return on Invested Capital (RoIC) was 1.2% (2017, same period: 3.0%).
     
    In the second quarter of 2018, TORM achieved TCE rates of USD/day 12,944 (2017, same period: USD/day 13,841). In the second quarter of 2018, product tanker freight rates started out at levels close to the levels seen in the first quarter of 2018, but the rates started to slide towards the end of the quarter.
     
    As of 30 June 2018, 15% of the remaining total earning days in 2018 were covered at an average rate of USD/day 16,323. As of 7 August 2018, 55% of the remaining total earning days in Q3 2018 were covered at USD/day 11,856.
     
    TORM has decided to install scrubbers on 14 vessels including all vessels currently on order and the three LR2 vessels that were delivered earlier in 2018. These vessels have a scrubber-prepared design and there are no changes to the delivery schedule. As of today, TORM’s scrubber program covers four LR2s, two LR1s and eight MRs.
     
    In early April 2018, TORM exercised newbuilding options for three MR vessels for a total net consideration of USD 93m of which USD 63m is financed by banks. The three vessels are scheduled to be delivered in 2019 through the first quarter of 2020.
     
    TORM took delivery of two LR2 newbuildings in the first quarter of 2018 and on 20 April 2018 a third newbuilding, TORM Hellerup, was delivered. In June 2018, TORM redelivered the chartered LR2 vessel TORM Margrethe to its owner after expiry of the charter period. As of 30 June 2018, TORM’s fleet consists of 74 owned vessels, four chartered-in vessels and ten vessels on order.
     
    As of 30 June 2018, TORM’s available liquidity was USD 442m and consisted of USD 159m in cash and USD 283m in undrawn credit facilities. As of 30 June 2018, net interest-bearing debt amounted to USD 598m. As of 30 June 2018, TORM's net loan-to-value (LTV) ratio was 54%.
     
    Based on broker valuations as of 30 June 2018, TORM’s Net Asset Value (NAV) excluding charter commitments was estimated at USD 840.3m. This corresponds to a NAV/share of USD 11.4 or DKK 72. TORM’s book equity amounted to USD 882m as of 30 June 2018. This corresponds to a book equity/share of USD 11.9 or DKK 76.3.
     
    Based on broker valuations, TORM’s fleet including newbuildings had a market value of USD 1,675m as of 30 June 2018. Compared to the broker valuations as of 31 March 2018, the fleet value has increased by USD 75m. Of the USD 1,675m, the value of new vessel contracts entered into in Q2 2018 summarized to USD 111m. Compared with Q1 2018, the broker value of the comparable fleet has decreased by USD 36m, totaling a net increase of USD 75m.
     
    As of 30 June 2018, TORM’s order book stood at ten newbuildings: one LR2, two LR1s and seven MRs, all from Guangzhou Shipyard International, China. The LR2 vessel is expected to be delivered in the third quarter of 2018 and the LR1s and the MRs in 2019 through the first quarter of 2020.
     
    The book value of the fleet was USD 1,450m as of 30 June 2018 excluding outstanding installments on the newbuildings of USD 306m.

    About TORM
    TORM is one of the world’s leading carriers of refined oil products. The Company operates a fleet of approximately 80 modern vessels with a strong commitment to safety, environmental responsibility and customer service. TORM was founded in 1889. The Company conducts business worldwide. TORM’s shares are listed on NASDAQ Copenhagen and NASDAQ New York (tickers: TRMD A and TRMD).




2018 September 19

16:04 MOL launches new large-scale ferry Sunflower Kirishima
15:47 Freeport of Riga Authority begins active cooperation with its Chinese partners
15:23 Vancouver Fraser Port Authority joins leading port authorities in climate action program
15:04 DFDS to invest DKK 300m to install scrubbers on 12 freight ferries deployed on freight routes in the Mediterranean
14:50 Maersk to combine Damco’s Supply Chain Services and Maersk Line’s Ocean Product on January 1st, 2019
14:22 NOVATEK and Fluxys apply for establishment of a joint venture in Rostock, Germany
14:08 Stevedoring unions announce a strike in the ports of Leixoes and Lisbon
13:08 Noble Group completes the sale of the Panacore vessels
12:47 Bunker prices are going down at the Port of Saint-Petersburg, Russia (graph)
12:29 Nevsky Shipyard took part in II International Fishery Forum and Expo 2018
12:07 ABS holds seminar series exploring gas as marine fuel
11:50 Azerbaijan Caspian Shipping Company has it towing and supply vessel Nercha overhauled at Bibiheybat shipyard
11:25 Klaipeda Seaport takes part in exhibition and conference in Kazakhstan
11:07 San Pedro Bay Ports ready cleaner truck rules for Oct. 1 2018
10:46 Record number of ships registered at Freeport of Riga in August
10:28 Container throughput of port Hong Kong (China) down 4.3% to 13.15 million TEUs in Jan-Aug’18
10:07 Austal awarded littoral combat ships 32 & 34
09:43 Brent Crude futures price down 0.06% to $78.98, Light Sweet Crude – down 0.03% to $69.57
09:19 Baltic Dry Index is down to 1,356 points
09:05 Port of Oakland to add electric trucks thanks to state grant
08:07 GTT signs a Technical Assistance and License agreement with Hyundai Mipo Dockyard
07:40 DNV GL awards AiP to Jiangnan Shipyard for 93K cbm very large ethane carrier design “PANDA E”

2018 September 18

18:09 Cruise ships called Saaremaa Harbour nine times during the summer season
17:52 Arctic units of RF Navy’s Northern Fleet hold amphibious assault training at Chukotka coast
17:27 Annual Advanced Course on Port Operations and Management held in France on 10-12 September
17:04 Maersk Line announces rates from Europe & Mediterranean to West Africa
16:50 Marinet Conference gathered more than 500 on-site and virtual participants
16:21 Drilling rig supply ship of Project 22420, Ostap Sheremet, left Amursky Shipyard for outfitting and testing
16:04 Maersk Line announces new Bunker Adjustment Factor (BAF)
15:34 NYK participates in Japan Climate Initiative
15:04 6 MOL-operated/managed vessels earn commendations from Japan Coast Guard Regional Headquarters
14:30 Yang Ming launches new container vessel 'YM Wellbeing'
14:16 Throughput of Chinese ports grew by 4.1% to 6.15 billion tonnes in 8M’18
14:03 PORT OF KIEL restructures Ostuferhafen access area
13:52 RS gains ISO 9001:2015 Certificate
13:28 Kolmar to export up to 40 million tonnes of coal per year via a terminal under construction in the Muchke Bay
13:04 Throughput of port Kaliningrad in 8M’18 grew by 6% Y-o-Y to 9.6 million tonnes
12:40 Okskaya Sudoverf takes part in Global Fishery Forum and Seafood Expo 2018
12:17 Throughput of port Shanghai (China) declined by 1% to 372.85 million tonnes in 8M’18
11:55 Fuel oil prices show no significant changes in the Far East ports of Russia (graph)
11:31 Throughput of port Vyborg in 8M’18 up 23% Y-o-Y to 1.15 million tonnes
11:09 Diana Shipping aqnnounces time charter contract for m/v Artemis with Ausca
10:48 Throughput of port Primorsk in 8M’18 fell by 11% Y-o-Y to 35.79 million tonnes
10:30 Throughput of port Vysotsk in 8M’18 declined by 3% Y-o-Y to 12.07 million tonnes
10:09 Georgia Ports Authority approves $92M rail expansion
09:52 Brent Crude futures price down 0.55% to $77.62, Light Sweet Crude – down 0.44% to $68.39
09:43 ABS Global Gas Team awarded classification contract for Singapore's first LNG bunker barge
09:33 Krasnoye Sormovo shipyard delivers Pola Feodosia, fourth dry cargo carrier of Project RSD59
09:15 Baltic Dry Index is down to 1,357 points
08:17 GTT and Keppel Offshore & Marine sign a license agreement for the construction of membrane tank solutions
07:36 Bureau Veritas issues approval for GTT’s new NO96 Flex cargo containment system

2018 September 17

18:04 Maersk Line announces rates from Indian Subcontinent and Middle East to Mediterranean
17:50 ICS launches free guidance on preparing for 2020 sulphur cap
17:23 Throughput of port Ust-Luga in 8M’18 declined by 5% Y-o-Y to 64.49 million tonnes
17:04 Maersk Line announces rates from Europe & Mediterranean to West Africa
16:35 Cheniere and Vitol sign 15-year LNG sale and purchase agreement
16:04 Port of Piraeus establishes partnership with Port of Guangzhou
15:30 Keppel delivers its second LNG-powered vessel to Keppel Smit Towage Singapore
15:12 Maersk Line announces rates from Far East Asia to West Africa
14:58 HHLA floating crane loads world’s biggest ship propeller onto a vessel at the Port of Hamburg