Core Insights - TORM plc (NASDAQ:TRMD) is identified as one of the most undervalued oil stocks, with Oaktree Capital Group becoming a major shareholder, owning 23.39% of the company, which may influence its corporate strategy going forward [1] - The company reported strong operational performance for the full year 2025 despite geopolitical challenges affecting global trade and energy flows [2] - TORM plc generated time charter equivalent (TCE) earnings of USD 910 million and adjusted EBITDA of USD 578 million for the year, although net profit decreased to USD 286 million from USD 612 million in 2024 due to lower average TCE rates [3] Financial Performance - TORM plc's TCE earnings for the full year amounted to USD 910 million, with an adjusted EBITDA of USD 578 million [3] - The net profit for the year was USD 286 million, a decline from USD 612 million in 2024, primarily attributed to lower average TCE rates, which fell to USD 28,783 per day [3] - The company maintained a high dividend payout ratio of 74% for 2025 and expressed confidence in a favorable market environment for 2026 [3] Company Overview - TORM plc operates and owns a fleet of product tankers and is structured through the Tanker and Marine Engineering segments [4] - The company was founded in 1889 by Ditlev E. Torm and Christian Schmiegelow [4]

We've seen significant amounts of upheaval in the energy market. Upheaval, to me, means a potential opportunity if you know how to play it right. For one, I've taken advantage of the crisis and enjoyed the upside from energy investments. Many of them are now rotated. It'sAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own op ...

Core Viewpoint - TORM plc announces that Oaktree Capital Group Holdings GP, LLC has informed the company that OCM Njord Holdings S.à r.l. holds 23,839,575 shares, representing 23.39% of TORM's total share capital and voting rights [1] Company Overview - TORM is a leading carrier of refined oil products, operating a fleet of product tanker vessels with a strong commitment to safety, environmental responsibility, and customer service [1] - Founded in 1889, TORM conducts business worldwide and is listed on Nasdaq in Copenhagen and New York under the tickers TRMD A and TRMD [1] Shareholder Information - OCM Njord Holdings S.à r.l. is a major shareholder, holding 23,839,575 shares, which corresponds to 23.39% of TORM's total share capital and voting rights [1]

Core Viewpoint - TORM plc is convening its Annual General Meeting (AGM) on April 15, 2026, to propose resolutions including off-market share buybacks and to present the annual report for the financial year ended December 31, 2025 [1][2]. Group 1: AGM Details - The AGM will take place at 12:00 noon (BST) at the Company's registered office in London [2]. - Shareholders are encouraged to vote on various resolutions, including the approval of the annual report and accounts, remuneration reports, and the reappointment of auditors [3]. Group 2: Proposed Share Buybacks - The Company proposes to buy back up to 10,000,000 A-shares, approximately 9.87% of its existing issued share capital, under Resolution 11 [2]. - An additional buyback of up to 7,500,000 A-shares, approximately 7.4% of the existing issued share capital, is proposed under Resolution 12 [2]. - The buybacks are intended to be executed via off-market purchases, which require shareholder approval due to previous resolutions not covering overseas exchanges [2][3]. Group 3: Financial Management and Shareholder Interests - The Directors believe that the ability to repurchase shares is an important aspect of financial management and may enhance shareholder value [2]. - The buybacks will only occur if deemed beneficial for the Company and its shareholders, considering market conditions and available reserves [2]. Group 4: Voting and Proxy Information - Shareholders can vote in person or via proxy, with a deadline for proxy submission set for April 13, 2026, at 06:00 p.m. (BST) [3]. - A dial-in option for the AGM is available, allowing shareholders to participate remotely [3].

TORM (NasdaqGS:TRMD) Q4 2025 Earnings call February 26, 2026 10:00 AM ET Company ParticipantsCliment Molins - Head of Shipping ResearchJacob Meldgaard - CEOKim Balle - CFOConference Call ParticipantsFrode Mørkedal - Senior Equity Research AnalystOperatorHello, welcome to the TORM Full Year 2025 Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question, press star o ...

Financial Data and Key Metrics Changes - For Q4 2025, TORM reported TCE of $251 million, slightly above Q3, resulting in a net profit of $87 million and a declared dividend of $0.70 per share [4][5] - Full year TCE reached $910 million, with a net profit totaling $286 million, of which $204 million is being returned to shareholders [6][8] - Average fleet-wide rates for the year were $28,703 per day, demonstrating the company's ability to outperform the broader market [8] Business Line Data and Key Metrics Changes - In Q4, the average TCE for LR2 vessels was above $35,000, LR1s above $31,000, and MRs just under $29,000 per day, reflecting strong market conditions [19] - The fleet expanded to 93 vessels by year-end, with plans to reach 95 vessels after completing remaining deliveries [5] Market Data and Key Metrics Changes - Product tanker freight rates have returned to average levels seen in the 2022-2024 market, with VLCC spot rates surging to around $200,000 per day [9][10] - Demand for product tankers remains steady, with recent rate increases driven by developments in the crude market and sanctions affecting vessel availability [10][11] Company Strategy and Development Direction - TORM's strategic focus is centered around the "One TORM" model, which enhances decision-making and responsiveness through real-time data and analytics [3] - The company aims to capitalize on attractive trading opportunities, particularly in challenging market conditions, which it views as a competitive advantage [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the uncertain market environment, supported by a solid capital structure and operational leverage [17] - The outlook for 2026 includes expectations of TCE earnings between $850 million and $1.25 billion, reflecting a positive market trajectory [29] Other Important Information - Broker valuations for TORM's fleet stood at $3.2 billion at year-end, with an NAV increase to $2.6 billion, indicating a positive market sentiment [23] - The company maintains a conservative capital structure with a net interest-bearing debt of $848 million, corresponding to a net LTV of 29.4% [24] Q&A Session Summary Question: What type of spot rate assumption was made for EBITDA guidance? - Management explained that guidance is based on fixed days for Q1 and forward curves for the rest of the year, with adjustments made for high current freight rates [34][35] Question: How does the strength in the crude market impact product tankers? - Management noted that the strength in the crude market directly influences LR2 fleet behavior, with financial incentives for switching between markets [40][42] Question: What portion of the LR2 fleet traded dirty throughout the quarter? - Approximately 10%-20% of the LR2 fleet traded spot dirty, with an additional 10% on term charter dirty [52] Question: What portion of administrative expenses is attributable to the chartering team? - Management indicated that they do not account for expenses in that manner, emphasizing the integrated nature of their operations [53][54]

Financial Data and Key Metrics Changes - In Q4 2025, TORM reported TCE of $251 million, slightly above Q3, resulting in a net profit of $87 million and a declared dividend of $0.70 per share [4][5] - For the full year, TCE reached $910 million, with a net profit of $286 million, of which $204 million is being returned to shareholders [6][7] - The average fleet-wide rates for the year were $28,703 per day, demonstrating the company's ability to outperform the broader market [7] Business Line Data and Key Metrics Changes - In Q4, the average TCE for LR2 vessels was above $35,000, LR1s above $31,000, and MRs just under $29,000 per day, reflecting strong market conditions [18] - The company added 8 vessels to its fleet during the quarter, increasing the total to 95 vessels, with investments well-timed as the acquired vessels appreciated in value [5][6] Market Data and Key Metrics Changes - Product tanker freight rates have returned to average levels seen in the 2022-2024 market, with VLCC spot rates surging to around $200,000 per day [8][9] - The demand for product tankers remains steady, with an increase in seaborne volumes of clean petroleum products, despite some disruptions in trade routes [10][11] Company Strategy and Development Direction - TORM's strategic focus is on the "One TORM" model, which enhances decision-making and responsiveness through real-time data and insights [3] - The company aims to capitalize on attractive trading opportunities, particularly in challenging market conditions, and maintains a disciplined approach to capital allocation [4][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the uncertain market environment, supported by a solid capital structure and operational leverage [16] - The outlook for 2026 includes TCE earnings guidance of $850 million to $1.25 billion, reflecting a positive market trajectory [29] Other Important Information - The company reported a net interest-bearing debt of $848 million, maintaining a leverage ratio within a stable range of 25%-30% [23][24] - Broker valuations for the fleet increased by 4.2% during the quarter, indicating a positive sentiment in the market [22] Q&A Session Summary Question: Can you provide details on the EBITDA guidance and spot rate assumptions? - Management explained that guidance is based on fixed days and forward market curves, with a midpoint TCE around $34,208 for Q1 [34][38] Question: How does the strength in the crude market impact product tankers? - Management noted that the strength in the crude market has a direct impact on LR2 fleet behavior, with financial incentives for switching between markets [39][42] Question: What portion of the LR2 fleet traded dirty during the quarter? - Approximately 10%-20% of the LR2 fleet traded spot dirty, with another 10% on term charter dirty [52] Question: Can you discuss the performance of the chartering team? - Management emphasized that success is attributed to the entire organization rather than just the chartering team, and specific expense breakdowns are not available [53][54]

FULL-YEAR RESULTS 2025 26 FEBRUARY 2026 Safe Harbor Statement as to the Future Matters discussed in this presentation material may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements ...

Financial Performance - TORM reported a net profit of USD 286 million in 2025, supported by strong freight rate performance and disciplined cost management[17]. - Revenue for 2025 was USD 1,339 million, a decrease from USD 1,559 million in 2024[31]. - EBITDA for 2025 was USD 571 million, down from USD 851 million in 2024[31]. - TORM's adjusted Return on Invested Capital (ROIC) was 10.8% in 2025, down from 22.2% in 2024[31]. - Net profit for 2025 is anticipated to be $286 million, a significant drop from $612 million in 2024 and $648 million in 2023[35]. - Group EBITDA reached USD 570.8 million, well within the guided range of USD 350–650 million[141]. - Revenue for the Tanker segment decreased by USD 229.8 million to USD 1,314.2 million in 2025, representing a 14.9% decline compared to 2024[148]. - Net profit for the year was USD 284.8 million, down from USD 614.1 million in 2024, a decrease of USD 329.3 million[148]. Dividends and Shareholder Returns - The company returned USD 2.12 per share in dividends to shareholders, demonstrating its commitment to returning free cash generated[17]. - TORM's Board approved an interim dividend of USD 0.70 per share for Q4 2025, totaling an expected payment of USD 70.9 million, equivalent to 82% of net profit[143]. Sustainability and Environmental Goals - TORM achieved a 43% reduction in carbon intensity compared to the IMO's 2008 baseline, highlighting its commitment to sustainability[18]. - The company aims for a net-zero target for absolute Scope 1 GHG emissions by 2050, with a 45% reduction target by 2030[39]. - TORM plans to enhance its fleet with modern, fuel-efficient vessels through share-based vessel transactions, ensuring financial resilience[63]. - The company is committed to achieving a net-zero CO₂ emission target by 2050, focusing on energy efficiency and sustainability[54]. - TORM achieved a 40% reduction in CO₂ intensity in 2024, one year ahead of its 2025 target, compared to the IMO's 2008 baseline[76]. - The company aims for a 45% CO₂ intensity reduction by 2030 and net-zero emissions from its fleet by 2050[77]. Operational Metrics - Time Charter Equivalent (TCE) earnings were USD 28,783 per day, reflecting robust earnings across all vessel classes[17]. - Average Time Charter Equivalent (TCE) rate per day fell by 20.2% from USD 36,061 in 2024 to USD 28,783 in 2025[146]. - TORM achieved time charter equivalent (TCE) earnings of USD 909.7 million, near the top end of the guidance range of USD 650–950 million for 2025[141]. - The average fleet-wide rates ranged from USD 26,672 per day in Q2 to USD 31,012 per day in Q3 2025[141]. Financial Position and Liquidity - The equity ratio improved to 65.4% in 2025, compared to 59.8% in 2024[31]. - TORM's total assets were USD 3,367 million, a decrease from USD 3,470 million in 2024[31]. - The TORM Group's liquidity position at the end of 2025 was USD 562.3 million, down from USD 614.8 million in 2024[169]. - TORM's available liquidity as of December 31, 2025, was USD 562.3m, including a cash position of USD 163.5m[184]. - TORM's net interest-bearing debt stood at USD 848.4m, with a net loan-to-value ratio of 29.4%[184]. Market Conditions and Risks - Global oil demand grew by 0.8 million barrels per day (b/d) in 2025, while global refinery capacity declined by 0.5 million b/d[125]. - Flows affected by the Red Sea disruption declined by 13% year-on-year, stabilizing at around 40% of pre-disruption levels by year-end 2025[118]. - Sanctions against Russian tankers led to a more than 60% plunge in ton-miles carried by sanctioned vessels[119]. - TORM's market risk exposure remains high due to geopolitical uncertainties, but the residual risk level is considered manageable[106]. - The likelihood of operational risks, such as oil major approval and environmental disasters, is assessed to be low due to effective controls[107]. Future Projections - TCE earnings for 2026 are projected to be between USD 850m and USD 1,250m, compared to USD 910m in 2025[198]. - EBITDA for 2026 is expected to range from USD 500m to USD 900m, down from USD 571m in 2025[198]. - A change in freight rates of USD 1,000 per day is estimated to impact EBITDA by USD 26m, given 26,241 unfixed earning days in 2026[199].

Financial Performance and Projections - In 2024, the company realized time charter equivalent (TCE) rates of $36,061 per day, which are expected to decrease to $28,783 per day in 2025[25]. - Revenues are substantially derived from a single segment, the product tanker segment, exposing the company to adverse developments in this market[36]. - The company faces significant risks from macroeconomic conditions, including rising oil prices, high interest rates, and supply chain constraints, which could adversely affect financial performance[29]. - A substantial portion of revenues is generated from a limited number of customers, and the loss of any key customer could result in significant revenue loss[26]. - The company has significant financial debt, which limits funds available for other corporate purposes and may affect operational flexibility[26]. - The value of the product tanker fleet decreased by approximately 13.3% in 2025, excluding vessels sold or acquired during the year[37]. - Seasonal fluctuations in demand typically result in stronger revenues in the fiscal quarters ending December 31 and March 31[39]. - The company’s product tanker fleet value decreased by approximately 13.3% in 2025, excluding vessels sold or acquired, which could adversely affect future performance and financial position[84]. - The company may need to procure additional funding in the future if cash flows from operations are insufficient, which could result in dilution of existing shareholders[137]. - As of December 31, 2025, TORM had available liquidity of $562.3 million, including cash and cash equivalents of $163.5 million and undrawn committed credit facilities of $398.8 million[136]. Market and Operational Risks - The product tanker sector is cyclical and volatile, leading to potential reductions in charter rates, vessel values, and overall operational results[25]. - The aging product tanker fleet may lead to increased operating costs and decreased competitiveness, affecting earnings negatively[26]. - The company is dependent on spot charters, and any decrease in spot charter rates may adversely affect earnings[23]. - The global economy faces challenges such as geopolitical tensions and potential disruptions in shipping routes, which could impact business operations[30]. - An oversupply of product tankers has led to increased volatility in charter hire rates, affecting profitability and cash flows[38]. - The company faces unpredictable and potentially substantial dry-docking repair costs, which could materially decrease earnings during repair periods[89]. - Labor interruptions, if unresolved, could adversely affect the company's operations, cash flows, and financial position[90]. - Global operations expose the company to risks from political instability, economic sanctions, and public health concerns, potentially impacting business performance[91]. - Geopolitical instability may disrupt key tanker routes, affecting shipping demand and operational efficiency[93]. - The ongoing conflict in Ukraine and related sanctions could adversely affect the company's financial condition and operating results[95]. Regulatory and Compliance Challenges - The company is subject to complex laws and regulations, including environmental laws, which can adversely impact financial results[22]. - Compliance with complex environmental laws and regulations may require costly operational changes, impacting financial performance[54]. - The European Waste Shipment Regulation mandates that non-EU flagged ships departing from EU ports be recycled only in OECD member countries, which may negatively impact revenue from residual values of vessels[65]. - The EU's Emissions Trading System will require shipowners to purchase emission allowances, with compliance phases set at 40% for 2024, 70% for 2025, and 100% for 2026, leading to increased compliance and administration costs[70]. - The FuelEU Maritime regulation, effective January 2025, requires shipping companies to gradually lower GHG intensity in fuels, necessitating the purchase of more expensive biofuels[72]. - The company is subject to various security and customs inspections that can result in cargo seizure, delays, and additional financial obligations, potentially impacting future performance and cash flows[88]. - The company is subject to significant legal and financial compliance costs due to being a U.S.-listed public company, which may divert management's attention from strategic initiatives[146]. - The implementation of the updated United Kingdom Corporate Governance Code will require enhanced board-level monitoring and could increase compliance costs[150]. - The company is subject to the UK Bribery Act, the U.S. Foreign Corrupt Practices Act, and other anti-corruption laws, which could lead to civil or criminal penalties if not complied with[212]. Environmental and Technological Factors - The International Energy Agency (IEA) forecasts that the rapid uptake of electric vehicles could avoid 6 million barrels per day of oil demand by 2030 and over 10 million barrels per day by 2035[44]. - The growth of electric vehicles, which accounted for over 20% of new car sales globally in 2024, may decrease the demand for crude oil and petroleum products[44]. - The company has installed hybrid-prepared open-loop scrubbers on all vessels, which can be refitted into hybrid scrubbers, but increasing restrictions on open-loop scrubbers may lead to higher operational costs due to reliance on low-sulfur fuels[67][68]. - Technological advancements and changing supply chain dynamics may reduce demand for maritime services, impacting overall shipping activity[114]. Financial Liabilities and Shareholder Concerns - As of December 31, 2025, the company had interest-bearing debt totaling $1,011.9 million and cash and cash equivalents of $163.5 million, resulting in a net debt of $848.4 million[181]. - The company may incur additional debt in the future, which could limit its ability to obtain financing for working capital or capital expenditures on favorable terms[182]. - The company has a minimum cash requirement per vessel fixed at $1.8 million since September 30, 2022, which impacts its ability to distribute dividends[197]. - The company may issue additional securities without shareholder approval, which could dilute existing shareholders' ownership interests[201]. - The market price of the company's Class A common shares has historically fluctuated significantly, which may continue to affect trading volatility[203]. - The company faces risks related to interest rate fluctuations under its financing agreements, which could negatively impact profitability and cash flow[190]. - A change of control could trigger mandatory repayment provisions in the company's debt facilities, potentially leading to foreclosure on its vessels[193]. - The company’s ability to pay dividends may be affected by statutory and contractual limitations under current or future debt arrangements[200]. Investor and Market Perception - Increasing scrutiny from investors regarding ESG policies may impose additional costs and risks, affecting the company's reputation and access to capital[78][80]. - Investigations into potential violations of anti-corruption laws could materially affect the company's reputation and future performance[216]. - U.S. investors may face difficulties in enforcing civil liabilities against the company and its directors due to its incorporation under the laws of England and Wales[217]. - The enforceability of U.S. court judgments in England is uncertain, particularly regarding civil liabilities based on U.S. federal securities laws[218].