Stocks of the shipping industry have been hit hard by the trade war that the US took on with the rest of the world. Many of the shipping stocks were already witnessing normalization of Time Charter Equivalent [TCE] rates forI am a value focused investor, conducting fundamental research on sectors like but not limited to chemicals, homebuilders, building materials, industrials and metals & mining. I prefer to invest in stocks which are cheaply available and have a catalyst in the near future. My investment h ...

HELLERUP, Denmark, March 21, 2025 /PRNewswire/ -- TORM plc (NASDAQ: TRMD) or (NASDAQ: TRMD-A) has increased its share capital by 262,294 A-shares (corresponding to a nominal value of USD 2,622.94) as a result of the exercise of a corresponding number of Restricted Share Units.All new shares are subscribed for in cash at DKK 0.08 per A-share.Transfer restrictions may apply in certain jurisdictions outside Denmark, including applicable US securities laws. The capital increase is carried out without any pre-em ...

Core Insights - TORM plc reported earnings for the quarter ended December 31, 2024, showing satisfactory results with revenue and earnings per share (EPS) exceeding expectations [1] Financial Performance - The earnings release indicated a beat on both revenue and EPS, although many metrics experienced a decline [1]

TORM plc (NASDAQ:TRMD) Q4 2024 Earnings Conference Call March 6, 2025 9:00 AM ET Company Participants Jacob Meldgaard - Chief Executive Officer Kim Balle - Chief Financial Officer Conference Call Participants Jonathan Chappell - Evercore Omar Nokta - Jefferies Operator Thank you for standing by. My name is Pam and I will be your conference operator today. At this time, I would like to welcome everyone to the TORM 2024 Annual Report Conference Call. All lines have been placed on mute to prevent any backgroun ...

FULL-YEAR RESULTS 2024 06 MARCH 2025 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 con ...

Strategic Report 2024 Highlights Contents Annual Report 2024 TORM PLC 4TH FLOOR, 120 CANNON STREET LONDON, EC4N 6AS, UNITED KINGDOM COMPANY: 09818726 | Risk Management | 17 | | --- | --- | | Market Review | 23 | | Financial Review 2024 | 25 | | Market Drivers and Outlook | 34 | | Coverage 2025-2027 | 37 | | TORM Fleet Development | 38 | Sustainability Statement | General | 41 | | --- | --- | | Environment | 60 | | Social | 103 | | Governance | 131 | Governance Governance Introduction | Governance at TORM | ...

Financial Performance - In 2023, the company realized Time Charter Equivalent (TCE) rates of $37,124/day, with a projected TCE rate of $36,061/day for 2024[33]. - The average spot TCE earnings for the product tanker fleet in 2024 were $36,061 per day[136]. - The average age of the company's vessels is 11 years as of December 31, 2024, which may impact competitiveness against newer, more efficient vessels[130]. - The company is heavily dependent on spot charters, with fluctuations in spot charter rates significantly affecting earnings[135]. - In 2024, 20 customers accounted for approximately 69% of the company's revenue, indicating a high dependency on a limited customer base[150]. Market Conditions - The product tanker market is cyclical, with freight rates declining from a high of $26,458/day in mid-2008 to an average of approximately $14,200/day from 2009 to 2014[33]. - The product tanker sector is characterized by volatility, which may lead to reductions in charter rates and vessel values[29]. - Seasonal fluctuations in demand for product tankers may result in quarter-to-quarter volatility in revenues, with typically stronger performance in fall and winter months[56]. - The oversupply of product tankers may lead to reduced charter hire rates and profitability, impacting future performance and cash flows[54]. - The demand for product tankers is influenced by external factors such as global economic conditions and changes in energy consumption patterns[39]. Regulatory and Compliance Risks - The company is subject to complex laws and regulations, including environmental regulations, which can adversely affect its financial position[30]. - The company is subject to various international and U.S. environmental regulations, including the U.S. Oil Pollution Act of 1990 and the International Maritime Organization's regulations, which could lead to significant penalties and operational disruptions if not complied with[73][74][77]. - Compliance with complex environmental regulations may require costly operational changes, affecting the company's financial position[71]. - The European Commission's Emission Trading Scheme (ETS) will require shipowners to purchase emission allowances starting in 2024, with compliance costs expected to increase over the following years[88]. - The FuelEU Maritime regulation, effective January 2025, mandates shipping companies to gradually lower the GHG intensity of fuels consumed on voyages involving EU ports, potentially increasing operational costs[90]. Financial Risks - The company has a significant amount of financial debt, which limits funds available for other corporate purposes and may restrict operational flexibility[34]. - As of December 31, 2024, the company had interest-bearing debt totaling $1,238.8 million and cash and cash equivalents of $291.2 million, resulting in a net debt of $947.6 million[198]. - The company may experience difficulties obtaining financing in the future due to changes in lending practices and economic conditions[44]. - The company may incur additional debt in the future, which could adversely affect its ability to obtain financing on favorable terms[199]. - The company is subject to financial covenants that restrict its operational flexibility, including maintaining specified minimum liquidity and equity requirements[205]. Operational Risks - The company faces risks related to international operations, including political instability and economic sanctions, which could adversely affect its business[30]. - The company faces risks from geopolitical conflicts, including political instability in the Middle East and Ukraine, which may adversely affect its operations[110]. - The ongoing conflict in Ukraine could lead to further economic sanctions, impacting the company's business and financial condition[114]. - Labor interruptions could have a material adverse effect on the company's operations and financial position if not resolved timely[109]. - The company may experience unexpected costs and delays due to operational risks inherent in the product tanker industry[104]. Customer and Counterparty Risks - A substantial portion of the company's revenues is derived from a limited number of customers, making it vulnerable to revenue loss if any of these customers are lost[30]. - The company is exposed to counterparty risks that could lead to significant losses if counterparties fail to meet their obligations[140]. - The company has received two cargo claims related to a customer's inability to honor indemnification obligations, which could adversely affect business[143]. - The company may face reputational damage and regulatory claims if contraband is found on its vessels[133]. Environmental and ESG Considerations - A shift in consumer demand away from oil products towards renewable energy sources may adversely affect the demand for product tankers[60]. - The company faces risks related to compliance with evolving Environmental, Social, and Governance (ESG) standards, which may impact its reputation and access to capital if not adequately addressed[97][98]. - Unfavorable ESG ratings could lead to negative investor sentiment and impact the company's access to capital[101]. - The company may incur additional costs and require resources to comply with ESG requirements, which could adversely affect its financial condition[1]. Tax and Legal Risks - The company is subject to a 4% U.S. federal income tax on gross shipping income attributable to transportation that begins or ends in the U.S., unless exempt under Section 883 of the U.S. Internal Revenue Code[175]. - As of December 31, 2024, the company estimates a non-current tax liability of $45.2 million related to held over gains if it abandons participation in the tonnage tax scheme[178]. - Changes in tax laws or tonnage tax regimes could materially affect the company's future performance and financial position[179]. Cybersecurity and Fraud Risks - Cybersecurity incidents could negatively impact the company's operations and financial position, despite the implementation of a 24/7 Security Operations Center for monitoring[194]. - The company has established internal controls to mitigate fraud risks, but there is no assurance that these measures will be sufficient to prevent future fraudulent behavior[192]. Shareholder and Governance Risks - The majority of Class A common shares are held by a limited number of shareholders, including Njord Luxco, which holds approximately 41.49% of the shares, potentially leading to conflicts of interest[214]. - The company cannot guarantee the declaration of dividends, as the Board of Directors has discretion over dividend payments based on available funds[221].

Group 1 - The global tanker market is experiencing key crosscurrents, with a lack of increased volume in the Red Sea despite an Israeli ceasefire [1] - There is a potential for lower tanker rates in the market, indicating a shift in demand dynamics [1]

Core Insights - Recent events have the potential to significantly impact the crude and refined product tanker markets, particularly following the US Treasury Department's sanctions issued on January 10th [1] Group 1: Industry Events - The US Treasury Department imposed sanctions on over a dozen entities, which could lead to shifts in market dynamics for crude and refined product tankers [1] Group 2: Market Implications - The sanctions may alter trade routes and shipping patterns, affecting supply and demand in the tanker market [1]

Investment Opportunity - TORM plc (NASDAQ: TRMD) stock was rated as a "Buy" in April 2023 due to its low debt and attractive valuation multiples [1] - The company's stock is currently held through beneficial long positions, including stock ownership, options, or other derivatives [1] Analyst Background - Daniel Sereda is the chief investment analyst at a family office with investments across continents and diverse asset classes [1] - He specializes in filtering vast amounts of data to extract critical investment ideas and runs the investing group Beyond the Wall Investing [1] - The group provides access to the same information prioritized by institutional market participants in their analysis [1] Subscription Offer - Beyond the Wall Investing offers a free trial and a special 10% discount for new subscribers [1] - The subscription provides access to the latest and highest-quality analysis of Wall Street buying and selling ideas [1]