TORM Product Tanker Freight Rates Climbs Up
TORM’s strong operational platform has delivered the highest product tanker freight rates since 2008 and a positive EBITDA of USD 96m in the third quarter of 2015, says its CEO Jacob Meldgaard.
TORM has demonstrated its financial and strategic flexibility with the exit from bulk to become a pure-play product tanker company, the acquisition of three MR vessels and two new financing agreements in the third quarter of 2015, he said.
Jacob adds: “With our proven track record and a large fleet on the water, TORM is well-positioned to take advantage of the promising supply and demand fundamentals in the market.”
During the third quarter of 2015, the product tanker market reached its highest level since 2008 primarily due to continued high refinery utilization supporting demand for transportation of refined products.
TORM’s largest segment, MRs, achieved spot rates of USD/day 24,599 in the third quarter of 2015, which is up by 77% year-on-year. The Tanker segment reported a gross profit of USD 104m in the third quarter of 2015.
During the third quarter of 2015, TORM purchased three modern second-hand MR vessels (TORM Loke (2007), TORM Atlantic (2010) and TORM Astrid (2012)) with expected delivery in October and November 2015 for a total consideration of USD 80m.
As the final step in the planned wind-down of TORM’s bulk activities, the two Panamax vessels TORM Anholt and TORM Bornholm were sold during the third quarter of 2015. There is no P&L effect from the sale.
The vessels have been delivered to the new owners and TORM no longer operates any owned or T/C-in vessels in the bulk segment. In the third quarter of 2015, TORM’s bulk segment reported a gross result of USD -1m.
On 13 July 2015, TORM successfully completed the restructuring including the contribution of 31 vessels by OCM (Gibraltar) Njord Midco Ltd.
Due to reverse acquisition accounting the consolidated financial results reflect the activities for Njord only for 2014 and the period from 1 January 2015 until 13 July 2015, whereas the remaining period of 2015 will reflect the combined activity of TORM and Njord.
