“The refined petroleum market is currently negatively affected by the tight supply of crude that does not meet demand, thus drawing inventories ashore, resulting in inventory levels below five-year lows in several regions. This imbalance led to historically low oil product freight rates in the third quarter of 2021, resulting in EBITDA of $ 30.4 million and pre-tax loss of – $ 14.1 million, ”says executive director Jacob Meldgaard and adds: “In these difficult times, TORM continues to focus relentlessly on operational efficiency while maintaining a strong liquidity and capital structure. “
- In the third quarter of 2021, TORM achieved CCT rates of $ 12,854 / day (2020, same period: $ 16,762 / day) and EBITDA of $ 30.4 million (2020, same period: $ 43.4 million ). Pre-tax loss was -14.1 million USD (2020, same period, profit of 1.0 million USD) and loss per share (EPS) was -0.18 USD or -1.14 DKK (2020, earnings per share over the same period: 0.01 USD or 0.05 DKK). Cash flow from operating activities was positive at $ 12.0 million in the third quarter of 2021 (2020, same period: $ 52.5 million), and the return on invested capital (RoIC) was -0, 9% (2020, same period: 2.7%).
- In the third quarter of 2021, the product tankers market was negatively impacted by lockdowns in Asia and Hurricane Ida-related refinery outages in the Gulf of the United States, which were only partially offset by the increase in long-haul flows to the Atlantic basin where product stocks have fallen below five-year lows. This situation has been compounded by the weakness of the oil tanker market, where the supply of crude still lags demand, and the market continues to depend on drawdowns on inventories. The unsustainable imbalance between supply and demand resulted in historically low oil product freight rates in the third quarter of 2021.
- During the COVID-19 pandemic, TORM has fully maintained its operations. The One TORM platform achieved strong security performance in the third quarter, while keeping operating expenses competitive. TORM takes every opportunity to have marine personnel vaccinated. At various ports in the United States and Europe, TORM has successfully conducted 67 vaccination campaigns for our vessels and vaccinated over 900 crew members. Additionally, TORM has shown the great value of the One TORM platform by successfully integrating the 11 vessels acquired earlier this year into the fleet, despite very difficult times.
- During the third quarter of 2021, TORM took delivery of the remaining two of the eight MR product tankers built in 2007-2012 from Team Tankers Deep Sea Ltd. TORM also took delivery of TORM Kiara (formerly Nissos Heraclea), the last of three LR2 ships were acquired from Okeanis Eco Tankers Corp. All three ships were announced earlier this year.
- At the start of the third quarter, TORM finalized the sale and leaseback of the two LR2 vessels TORM Hellerup and TORM Herdis, with an existing Chinese financial institution on attractive terms. After September 30, 2021, TORM secured a commitment from a new Chinese financial institution for the sale and operational leasing of nine existing MR vessels built from 2010 to 2012. Transactions are expected to be finalized during the fourth quarter of 2021 and first quarter 2022. with a liquidity contribution of $ 75.5 million, and they underline TORM’s ability to obtain operating lease financing at attractive and diversified prices.
- As of September 30, 2021, TORM’s available cash was US $ 185.5 million, of which US $ 109.9 million was cash and cash equivalents, including restricted cash and US $ 75.6 million. ” USD in available sale and leaseback finance related to the financing of the two new buildings expected to be delivered in the fourth quarter of 2021 and the first quarter of 2022. Cash and cash equivalents include $ 5.7 million of liquidity subject to restrictions, mainly linked to the guarantee of financial instruments. As of September 30, 2021, net interest-bearing debt was $ 938.2 million and TORM’s loan-to-equity (LTV) ratio was 53.6%.
- Based on broker ratings, TORM’s fleet, including new buildings, had a market value of USD 1,886.1 million at end-September 2021. Compared to broker ratings as of June 30, 2021, the value of Fleet market decreased by $ 17.4 million after adjusting for acquisitions and sales. vessels in Q3 2021. The carrying value of TORM’s fleet was $ 1,953.2 as at September 30, 2021 excluding unpaid debts on new and used vessels. The overdue down payments include the payment of the washers related to the two new LR2 buildings.
- As of September 30, 2021, TORM had installed 50 scrubbers out of the 53 planned and the other three are expected to be installed by the end of 2021 and the first quarter of 2022, including two on the new LR2 buildings.
- As of September 30, 2021, 27% of the total remaining compensation days in 2021 were covered at an average rate of $ 13,880 / day. As of November 07, 2021, coverage for the fourth quarter of 2021 was 69% at $ 12,985 / day. For individual segments, coverage was 69% at $ 16,053 / day for LR2, 54% at $ 15,182 / day for LR1, 71% at $ 12,148 / day for MR, and 72% at $ 10,208 / day for Handysize.
WEB BROADCASTING AND VSLECTURE CALL
TORM’s results will be presented live on the TORM website at 9:00 a.m. Eastern Time / 3:00 p.m. Central European Time. Participants must register approximately ten minutes before the event.
There will be a simultaneous conference call. To participate in the call, please dial +45 3271 4988 (or +1 (760) 294 1674 for connections within the United States) at least ten minutes prior to the start to ensure connection. The operator will guide you to the conference room. The presentation can be downloaded from www.torm.com/investors thirty minutes before the event.
|Jacob Meldgaard, Executive Director, tel. : +45 3917 9200||Cour Birchin, 20, ruelle Birchin|
|Kim Balle, Chief Financial Officer, tel. : +45 3917 9200||London, EC3V 9DU, United Kingdom|
|Andreas Abildgaard-Hein, IR, tel. : +45 3917 9339||Phone. : +44 203 713 4560|
TORM is one of the world’s leading carriers of refined petroleum 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 operates worldwide. TORM’s shares are listed on NASDAQ Copenhagen and NASDAQ New York (tickers: TRMD A and TRMD). For more information, please visit www.torm.com.
SAFE HARBOR STATEMENTS ON THE FUTURE
The matters discussed in this press release may constitute forward-looking statements. Forward-looking statements reflect our current views regarding future financial events and performance and may include statements regarding future plans, objectives, goals, strategies, events or performance, and underlying assumptions and statements other than statements of historical fact. . The words “believe”, “anticipate”, “intend”, “estimate”, “anticipate”, “plan”, “plan”, “” similar expressions generally identify forward-looking statements.
The forward-looking statements in this release are based on various assumptions, many of which, in turn, are based on other assumptions, including, without limitation, management’s review of historical operating trends, data in our records and other data available from third parties. Although the Company believes that these assumptions were reasonable when they were made, as these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, the Company cannot guarantee that it will achieve or achieve those expectations, beliefs or projections.
Significant factors which, in our opinion, could cause actual results to differ materially from those discussed in forward-looking statements include the strength of the economy and world currencies, general market conditions, including rate fluctuations. charter and vessel values, duration and severity of COVID-19, including its impact on the demand for petroleum products and their shipping, our customers’ operations and our business in general, l ” changes in demand for “tonne-miles” of oil carried by tankers and changes in demand for tanker capacity, effect of changes in OPEC oil production levels and in consumption and storage of oil in the world, changes in demand that may affect the attitude of time charterers towards scheduled and unplanned dry-docking, changes in TORM operating expenses, including bunkering prices, dry dock and insurance costs, changes in the regulation of shipping operations, including actions taken by regulatory authorities, potential liability ongoing or future litigation, national and international political conditions, potential disruption of shipping routes due to accidents, political events, including “trade wars” or terrorist acts.
In light of these risks and uncertainties, you should not place undue reliance on any forward-looking statements contained in this press release, as they are statements about events which are not certain to occur as described or not at all. These forward-looking statements are not guarantees of our future performance, and actual results and future developments may differ materially from those projected in the forward-looking statements.
Except to the extent required by applicable law or regulation, the Company does not undertake to publicly publish revisions of these forward-looking statements to reflect events or circumstances after the date of such publication or to reflect the occurrence of events. unforeseen.
30-2021 – TORM plc Third Quarter Report 2021 – US
Q3 2021 report