TORM Adds Four MR Tankers

Danish shipping operator TORM has reached an agreement to acquire four modern 2011-built MR vessels “at an attractive price point”.

"Looking into an improving demand-supply situation for the transportation of clean petroleum products, we believe that the timing for a fleet expansion with modern vessels is appropriate and underlines the flexibility provided by our strong capital structure," says Executive Director Jacob Meldgaard.

A press release from the carrier of refined oil products said that it has agreed to buy the quartet for a total consideration of USD 83m with expected delivery between August and December 2019.

The vessels are built at the Korean yard Hyundai Mipo. TORM already has ten vessels in the fleet from Hyundai Mipo and has good technical and commercial experience with these vessels.

As of today, TORM has CAPEX commitments of approx. USD 346m covering the remaining CAPEX on TORM's two LR1 newbuildings with expected delivery in 2019, six MR newbuildings with expected delivery in 2019 and the first quarter of 2020, the four 2011-built second-hand MR vessels and scrubber installations on newbuildings and retrofit vessels. TORM's undrawn credit facilities and cash today amount to approx. USD 407m.

In addition, TORM has agreed to a conditional term sheet of USD 66m with an international financial institution on the financing of the four MR vessels.

TORM has since the publication of the first quarter results on 14 May 2019 entered into an agreement to sell an older MR vessel, TORM Gunhild (built in 1999), for a total consideration of USD 6m.