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Wednesday, 16 August 2017

TORM plc interim results for the half-year ended 30 June 2017

TORM plc    

Published: 08:42 CEST 16-08-2017 /GlobeNewswire /Source: TORM plc / : TRMD A /ISIN: GB00BZ3CNK81

TORM plc interim results for the half-year ended 30 June 2017

 

 

"I am satisfied that we have been able to deliver a profit for the first six months of 2017 despite a difficult product tanker market. Over the summer, we have utilized our strong capital structure to pursue two attractive vessel growth opportunities totaling six vessels at what we believe is an opportune time in the cycle," says Executive Director Jacob Meldgaard.

In the first six months of 2017, TORM realized a positive EBITDA of USD 80m and a profit before tax of USD 3m. Q2 2017 had an EBITDA of USD 36m and a profit before tax of USD         -2m.

  • EBITDA for the half-year ended 30 June 2017 was USD 80m (2016, same period: USD 126m). Profit before tax for the first six months of 2017 was USD 3m (2016, same period: USD 46m). Cash flow from operating activities was positive with USD 65m in the first six months of 2017 (2016, same period: USD 116m) and earnings per share (EPS) was USD 0.0 (2016, same period: USD 0.7).
     
  • During the half-year ended 30 June 2017, consumption of clean petroleum products was healthy; however, inventory drawdowns were limited due to the large quantity of oil being refined. The high clean petroleum product inventories had a negative impact on the demand for product tankers. TORM's product tanker fleet realized average TCE earnings of USD/day 14,567 for 13,722 earning days (2016, same period: USD/day 18,713 for 14,024 earning days) and a gross profit of USD 100m (2016, same period: USD 148m).
     
  • The Board of Directors has approved an interim dividend of USD 1.2m, equivalent to USD 0.02 per share. The dividend is expected to be distributed on 12 September 2017 with the ex-dividend date on 24 August 2017. The interim dividend payment is in line with the Company's distribution policy and corresponds to 42% of net income for the six months ended 30 June 2017.
     
  • During the first six months of 2017, TORM sold three vessels: TORM Anne (1999-built MR vessel), TORM Madison and TORM Trinity (both 2000-built Handysize vessels). Furthermore, TORM completed sale and leaseback transactions for three vessels: TORM Helene, TORM Mary and TORM Vita. The three sale and leaseback transactions are treated as financial leases but have no purchase obligation attached.
     
  • Following the balance sheet date, TORM has completed two transactions to purchase a total of six MR resale vessels for a total consideration of USD 185m. The first transaction includes four MR resale vessels with expected delivery in 2019. TORM has received firm commitment from Danish Ship Finance to finance the four vessels with 65% of the purchase price. The transaction includes an option to purchase up to four additional MR vessels with expected delivery in late 2019. The second transaction includes two MR resale vessels for delivery in the third quarter of 2017. In addition to the six vessels purchased, TORM has sold one vessel, TORM Fox, a 2005-built Handysize vessel.
     
  • The carrying value of the fleet including prepayments was USD 1,342m as of 30 June 2017 excluding outstanding installments on the LR2 newbuildings of USD 134m. Based on broker valuations, TORM's fleet including newbuildings had a market value of USD 1,354m as of 30 June 2017. Compared to the broker valuations as of 31 March 2017, the fleet value has increased by USD 9.6m (~0.7%). When excluding vessels sold during the second quarter, the fleet value has increased by ~1.8%.
     
  • Net interest-bearing debt amounted to USD 556m as of 30 June 2017.
  • As of 30 June 2017, TORM had undrawn credit facilities and cash of approx. USD 404m. As of 30 June 2017, TORM's order book stood at four LR2 newbuildings with expected delivery in 2017 and 2018. Outstanding CAPEX relating to the order book amounted to USD 134m and is fully financed. The available liquidity, order book and outstanding CAPEX figures are as of 30 June 2017. The figures do not include financing and CAPEX commitments related to the six MR resale vessels.
     
  • Based on broker valuations as of 30 June 2017, TORM's net asset value (NAV), excluding charter commitments, is estimated at USD 707m, equivalent to a NAV/share of USD 11.4 or DKK 74.2.
     
  • Equity amounted to USD 788m as of 30 June 2017, equivalent to a book equity/share of USD 12.7 or DKK 82.8 excluding treasury shares and outstanding warrants, giving TORM an equity ratio of 48%.
     
  • As of 30 June 2017, 21% of the remaining earning days in 2017 were covered at USD/day 16,046.
     
  • As of 7 August 2017, TORM had covered 58% of the earning days in the third quarter of 2017 at an average TCE of USD/day 14,442.

 

 

 

Conference call

 

Contact TORM plc

TORM will be hosting a conference call for financial analysts and investors at 3 pm CEST today. Please dial in 10 minutes before the conference is due to start on +45 3271 4607 (from Europe) or +1 866 779 1130 (from the USA). The presentation can be downloaded from www.torm.com.

 

Birchin Court, 20 Birchin Lane, London EC3V 9DU, United Kingdom

Tel.: +45 3917 9200 / Fax: +45 3917 9393, www.torm.com

Jacob Meldgaard, Executive Director, tel.: +45 3917 9200

Christian Søgaard-Christensen, CFO, tel.: +45 3917 9200
Christian Mens, Investor Relations, tel.: +45 3917 9231

 

 

ABOUT TORM

TORM is one of the world's leading carriers of refined oil products. The Company operates a fleet of approximately 80 modern vessels with a strong commitment to safety, environmental responsibility and customer service. TORM was founded in 1889. The Company conducts business worldwide. TORM's shares are listed on Nasdaq Copenhagen (ticker: TRMD A). For further information, please visit www.torm.com.

 

SAFE HARBOR STATEMENTS AS TO THE FUTURE

Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and statements other than statements of historical facts. The words "believe," "anticipate," "intend," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions generally identify forward-looking statements.

 

The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies that are difficult or impossible to predict and are beyond our control, the Company cannot guarantee that it will achieve or accomplish these expectations, beliefs or projections.

Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of the world economy and currencies, changes in charter hire rates and vessel values, changes in demand for "ton miles" of oil carried by oil tankers, the effect of changes in OPEC's petroleum production levels and worldwide oil consumption and storage, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled dry-docking, changes in TORM's operating expenses, including bunker prices, dry-docking and insurance costs, changes in the regulation of shipping operations, including requirements for double hull tankers or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents, political events or acts by terrorists.

In light of these risks and uncertainties, you should not place undue reliance on forward-looking statements contained in this release because they are statements about events that are not certain to occur as described or at all. These forward-looking statements are not guarantees of our future performance, and actual results and future developments may vary materially from those projected in the forward-looking statements.

Except to the extent required by applicable law or regulation, the Company undertakes no obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.



08-2017 - H1 2017 Report - UK



This announcement is distributed by Nasdaq Corporate Solutions (One Liberty Plaza, 165 Broadway, New York, NY 10006. Tel: +1 212 401 8700. www.nasdaqomx.com) on behalf of NASDAQ OMX Corporate Solutions clients. Source: TORM plc, 27 Old Gloucester Street, London WC1N 3AX, UK
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