Core Points - TORM plc has decided to grant restricted share units (RSUs) to certain employees and Executive Director Jacob Meldgaard as part of an Additional Retention Program [1][2] - A total of 1,293,434 RSUs will be granted, with a strike price of one US cent, vesting on October 1, 2028 [2] - Jacob Meldgaard will receive an additional 500,000 RSUs under the same terms [2] - The theoretical market value of the RSU allocation is estimated at USD 40 million based on the Black-Scholes model [3][6] - The RSU allocation is expected to impact the profit and loss statement with a total effect of USD 40 million spread across the years 2025 to 2028 [4] Financial Impact - The expected financial impact of the RSU allocation is detailed as follows: - 2025: USD 3.6 million - 2026: USD 13.3 million - 2027: USD 13.3 million - 2028: USD 9.7 million [4] - The allocation includes adjustment and acceleration provisions typical for restricted stock option programs [3] Company Overview - TORM is recognized as one of the leading carriers of refined oil products, operating a fleet of product tanker vessels [4] - The company emphasizes safety, environmental responsibility, and customer service [4] - TORM was founded in 1889 and is publicly listed on Nasdaq in Copenhagen and New York [4]

Core Viewpoint - TORM plc has been informed that Hafnia Limited will acquire approximately 14.1 million A shares from Oaktree Capital Management, representing about 14.45% of TORM's issued share capital at a price of USD 22 per share, totaling approximately USD 311.43 million [1][2]. Group 1: Share Purchase Details - The share purchase is contingent upon entering a definitive agreement and fulfilling customary conditions, including regulatory approvals and the appointment of a new independent board chairman for TORM [2]. - TORM is not involved in the transaction and has no additional information regarding the share purchase [2]. Group 2: Company Overview - TORM is recognized as one of the leading carriers of refined oil products globally, operating a fleet of product tanker vessels with a strong focus on safety, environmental responsibility, and customer service [3]. - Founded in 1889, TORM conducts business worldwide and is listed on Nasdaq in Copenhagen and New York under the tickers TRMD A and TRMD [3].

Core Viewpoint - Investors are optimistic about Torm's stock following the company's strong Q2 2025 financial results and revised guidance for the remainder of the year, leading to a 7.7% increase in share price [1]. Financial Performance - Torm reported revenue of $315.2 million for Q2 2025, exceeding analysts' expectations with an earnings per share (EPS) of $0.60, compared to the consensus estimate of $0.57 [2]. - For 2025, Torm revised its time charter equivalent (TCE) earnings guidance to a range of $800 million to $950 million, up from the previous guidance of $700 million to $900 million. Additionally, EBITDA guidance was increased to $475 million to $625 million, from the earlier range of $400 million to $600 million [3]. Dividend Considerations - Torm offers a high forward dividend yield of 8.4%, attracting investors looking for income. However, the quarterly dividend has shown significant variability and has declined steadily over the past three years [4]. - The stock may not be suitable for those seeking a reliable passive income stream due to the uncertainty in quarterly payouts, but it may appeal to investors with a higher risk tolerance [6].

Financial Performance - Second Quarter 2025 TCE was USD 208 million, compared to USD 214 million in the first quarter of 2025[7] - Second Quarter 2025 EBITDA was USD 127 million, down from USD 136 million in the first quarter of 2025[7] - Net profit for the Second Quarter 2025 was USD 59 million, compared to USD 63 million in the previous quarter[7] - The company's fleet size decreased from 91 vessels in Q1 2025 to 88 vessels in Q2 2025[7] - The company's dividend payout ratio was 67% in Q2 2025, a 5 percentage point increase from 62% in Q1 2025[32] Market Dynamics - Trade volumes reached a 16-month high at the start of Q3, driven by increased exports from the Middle East, Asia, and the Americas[17] - CPP-trading product tanker fleet capacity declined by approximately 2%, despite a 4% nominal fleet growth, comparing end Q2 2025 vs end Q2 2024[28] Future Outlook - The company expects TCE earnings to be USD 800 million - 950 million and EBITDA to be USD 475 million - 625 million for 2025[54] - The company has coverage for Q3 2025 at 56% at USD 30,617 per day and 66% coverage for FY 2025 at USD 27,833 per day[53]

Financial Data and Key Metrics Changes - TORM reported a TCE of USD 208 million for Q2 2025, consistent with previous quarters, resulting in a net profit of USD 59 million and an EBITDA of USD 127 million [4][18][27] - The average TCE rates were USD 26,700 per day, with LR2s above USD 35,000, LR1s slightly above USD 27,000, and MRs around USD 23,000, indicating stable freight rates [18][19] - The company declared a dividend of USD 0.40 per share, representing a payout ratio of 67% [22] Business Line Data and Key Metrics Changes - The product tanker market has shown resilience, with benchmark earnings for MR and LR2 vessels reflecting a healthy uptick due to increased trade flows and limited growth in the CPP trading fleet [6][8] - Tonne miles have increased significantly, driven by a surge in East to West middle distillate trades, reaching a sixteen-month high [7][8] Market Data and Key Metrics Changes - Trade volumes have surged, particularly in the middle distillate sector, with inventories in North West Europe falling, necessitating increased imports [7][8] - Refinery closures in North West Europe and the U.S. West Coast are expected to reduce local product supply, increasing demand for imports [9][10][11] Company Strategy and Development Direction - TORM is focusing on fleet optimization by divesting older vessels to maintain a modern and efficient fleet [4] - The company has raised its full-year guidance for TCE earnings to USD 800 million to USD 950 million, reflecting a stronger earnings outlook [27] Management's Comments on Operating Environment and Future Outlook - Management noted that despite geopolitical uncertainties, market sentiment remains positive, with strong momentum entering Q3 [5] - The company expects continued support for trade flows and vessel utilization, driven by geopolitical factors and refinery closures [8][16] Other Important Information - TORM has secured commitments for up to USD 857 million in refinancing, enhancing liquidity and financial flexibility [24][25] - The average age of the fleet is the highest in two decades, with a significant portion of older vessels under sanctions, impacting fleet utilization [14][16] Q&A Session Summary Question: What has caused the consistency in TCE over the last nine months? - Management acknowledged the remarkable stability and indicated that it does not restrict operational flexibility, with potential for upside as market dynamics evolve [30][31] Question: Will the payout ratio increase in the future? - Management expects the payout ratio to be higher in 2026 due to a decrease in cash flow breakeven [33][34] Question: What is driving the upside in MR rates? - The increase in CPP on the water and reduced cannibalization from crude tankers have contributed to the uptick in MR rates [41][42] Question: Are asset values stabilizing? - Management believes asset prices are stabilizing and could rise if freight rates improve [48][50] Question: When will the positive effects of refinery closures be seen? - The closures in Europe are expected to impact the market positively by the end of 2025, while U.S. West Coast closures will take effect in about a year [58][60] Question: What is the impact of the Russian price cap change? - Management indicated uncertainty regarding the impact but noted that many sanctioned vessels may not easily return to mainstream trades [62][64]

Core Viewpoint - TORM PLC reported quarterly earnings of $0.58 per share, exceeding the Zacks Consensus Estimate of $0.57 per share, but down from $2.02 per share a year ago, indicating a significant decline in profitability [1][2] Financial Performance - The company achieved revenues of $210.3 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.57%, but down from $437.7 million year-over-year [2] - Over the last four quarters, TORM has surpassed consensus EPS estimates three times and topped revenue estimates three times as well [2] Stock Performance and Outlook - TORM shares have declined approximately 2% since the beginning of the year, contrasting with the S&P 500's gain of 10% [3] - The company's earnings outlook is crucial for future stock performance, with current consensus EPS estimates at $0.60 for the upcoming quarter and $2.84 for the current fiscal year [4][7] Industry Context - The Transportation - Shipping industry, to which TORM belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, which may negatively impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that TORM's stock may outperform the market based on favorable estimate revisions [5][6]

In the first half year of 2025, TORM achieved TCE of USD 422.2 m including unrealized losses on derivatives of USD -4.3 m (2024, same period: USD 656.6 m including unrealized losses on derivatives of USD 1.4m) and an adjusted EBITDA of USD 266.7 m (2024, same period: USD 518.3 m) and a net profit of USD 121.6m (2024, same period: USD 403.4 m), reflecting the market environment. In the most recent quarter, volatile geopolitical developments and expanded sanctioning of vessels have added further complexity to ...

Core Viewpoint - TORM reported strong second-quarter results despite global uncertainties, leading to an increase in full-year guidance for 2025 [1][11]. Financial Results - In Q2 2025, TORM generated time charter equivalent earnings (TCE) of USD 208.2 million, down from USD 325.9 million in Q2 2024, reflecting a decline of USD 117.7 million [5]. - Adjusted EBITDA for the same period was USD 129.0 million, compared to USD 251.1 million in Q2 2024, a decrease of USD 122.1 million [5]. - Net profit for Q2 2025 was USD 58.7 million, down from USD 194.2 million in Q2 2024, a decline of USD 135.5 million [5]. - Average TCE rates were USD 26,672 per day in Q2 2025, significantly lower than USD 42,057 per day in Q2 2024, a drop of USD 15,385 [3][5]. - Basic earnings per share (EPS) were USD 0.60, down from USD 2.08 in the same period last year [4][5]. Market Conditions - The tanker market faced complexities due to geopolitical developments and expanded sanctions, affecting trade volumes, particularly in routes impacted by the Red Sea disruption [2]. - Despite a rebound in product tanker ton-miles starting March 2025, trade volumes remained subdued, neutralizing earlier gains [2]. Vessel Transactions - TORM sold the 2008-built LR2 vessel TORM Mathilde and two 2008-built MR vessels, TORM Voyager and TORM Discoverer, with the latter delivered in July 2025 [6]. Financing - TORM secured financing commitments of up to USD 857 million to refinance existing loans and lease agreements for 22 vessels, enhancing capital flexibility [7]. Dividend Distribution - An interim dividend of USD 0.40 per share was approved for Q2 2025, totaling an expected payment of USD 39.2 million, representing 67% of net profit [9]. Financial Outlook - TORM increased its full-year 2025 guidance, expecting TCE earnings between USD 800 million and USD 950 million, up from the previous range of USD 700 million to USD 900 million [11]. - As of August 4, 2025, TORM had covered 56% of Q3 2025 earning days at an average rate of USD 30,617 per day [10].

Core Viewpoint - The article emphasizes the importance of value investing and highlights TORM (TRMD) as a potentially undervalued stock with strong financial metrics [2][8]. Group 1: Investment Metrics - TORM (TRMD) has a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong potential for value investors [4][3]. - The stock is currently trading at a P/E ratio of 5.77, which is lower than the industry average of 6.77 [4]. - TRMD's Forward P/E has fluctuated between 3.06 and 6.73 over the past 52 weeks, with a median of 5.28 [4]. Group 2: Valuation Ratios - TORM has a P/B ratio of 0.84, significantly lower than the industry average of 1.42, suggesting it may be undervalued [5]. - The P/S ratio for TRMD is 1.21, compared to the industry's average of 1.45, indicating a favorable valuation based on sales [6]. - The P/CF ratio stands at 2.90, which is attractive relative to the industry average of 4.83, further supporting the notion of undervaluation [7]. Group 3: Overall Assessment - The combination of these financial metrics suggests that TORM is likely being undervalued at present, supported by a strong earnings outlook [8].

Core Viewpoint - The article emphasizes the importance of value investing and highlights TORM (TRMD) as a strong value stock based on various valuation metrics [2][8]. Valuation Metrics - TORM (TRMD) has a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential for value investors [4]. - The stock's P/E ratio is 5.42, significantly lower than the industry's average of 6.63, suggesting it may be undervalued [4]. - TORM's P/B ratio stands at 0.79, compared to the industry's average P/B of 1.40, further indicating attractive valuation [5]. - The P/S ratio for TRMD is 1.22, which is lower than the industry's average P/S of 1.51, reinforcing its value proposition [6]. - TORM's P/CF ratio is 2.73, well below the industry's average P/CF of 4.77, highlighting its undervaluation based on cash flow strength [7]. Investment Outlook - The combination of TORM's favorable valuation metrics and strong earnings outlook positions it as a compelling value stock at present [8].