Torm plc Q3 2033

Reported earlier today

  • Rev of $358.1M
  • Net profit of $119.4M
  • TCE of $33K daily
  • Declared div of $1.46/sh

Lots of additional good data on Slide 2, including more than a few vessel exits and vessel additions the next few months.

  • Sale of (older??) 2 LR1 vessels during Q3, but delivery during Q4
  • [edit] Sale of 1 LR1 and 2 MR2 tankers during the current quarter.
  • Acquisition of 4 2015-2016 MR2 vessels for ~$156M
  • Acquisition of 8 LR2 vessels (2010 - 2012 builds) for ~$400M
  • Claim is that all acquisitions are eco-product tankers (I thought “eco” started in 2015??). Vessels are financed with some combination of cash and shares

Though not heavily leveraged, credit to Torm management for financing with a combination of cash and equity. Assume Torm were open to some leverage, 33.3% (or 1/3 of the two deals) could mean around $200M to cash reserves. If deals go as planned, Torm expands its fleet to around 93 vessel by end of Q1 2024


Commented on Torm plc on the “Value Hounds” board.

As a follow-up to an item that had bugging me, I found a reference to “assets held for sale” and concluded this is the two LR1s that were sold in Q3 and deliver to buyer in Q4. That’s $27.8M of cash. If the vessels sold in Q4 bring in $12.2M (LR1), $10M (MR) & $10M (MR) - that’s $70M. Or, viewed differently, most of the cash component needed for the acquisition of the 4 Eco MR tankers ($75M). That does assume all 5 vessels are debt-free.

Will wait to see the final numbers. I do like the recycle of capital, and the fact that Torm get “on-the-water” assets in a tight market.