The following is a summary of the TORM Plc (TRMD) Q3 2024 Earnings Call Transcript:

Financial Performance:

• TORM Plc reported Q3 2024 time charter equivalent earnings of $263 million and EBITDA of $191 million.

• Net profit for the quarter was $131 million, showing a slight increase from the previous year.

• Fleet-wide average TCE rates were approximately $34,000 per day, with specific segment rates for LR2s at about $41,000, LR1s over $33,000, and MRs more than $31,000.

Business Progress:

• TORM has acquired eight second-hand MR vessels for $340 million in a partly share-based transaction, with six already delivered and two more expected by year-end.

• The company declared a dividend of $1.20 per share for the quarter, continuing its policy of distributing excess cash flow after debt repayment.

• The company maintains a strong cash position and a secure debt maturity profile, enabling significant financial flexibility and stability.

Opportunities:

• The geopolitical factors reshaping refined product trade and new refining capacity in net exporting regions are expected to drive higher demand for product tankers.

• The expectation for lower product tanker deliveries from 2028 onwards due to a shift in Chinese shipyard outputs presents an opportunity for fleet value appreciation and market leverage.

Risks:

• The product tanker market is affected by geopolitical tensions and disruptions, like those at the Bab al-Mandeb Strait impacting trade routes.

• Cannibalization from crude tankers poses a risk to product tanker demand, though this is expected to reduce in Q4.

• Potential further refinery closures in mature markets could impact demand variably.

More details: Torm IR

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