Torm plc Q3 2033

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11/09
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

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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.