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]

TORM (TRMD) Q2 2025 Earnings Call August 14, 2025 09:00 AM ET Speaker0Hello, and thank you for standing by. My name is Lacey, and I will be your conference operator today. At this time, I would like to welcome everyone to the TORM Second Quarter twenty twenty five Conference Call. All lines have been placed on mute to prevent background noise. After the speakers' remarks, there will be a question and answer session.Thank you. I would now like to turn the conference over to Jacob Milkgaard, CEO. You may begi ...

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]

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 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].

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on ke ...

Company Overview - TORM plc is a fossil fuel shipping company that specializes in transporting refined fossil fuels such as gasoline, naphtha, jet fuel, and kerosene through its fleet of vessels and strategic alliances with leading oil producers [1] Investment Focus - The company is of interest to individual investors who seek value in companies linked to commodity production, particularly those with sustained free cash flows, low leverage, and sustainable debt levels [1] - There is a focus on companies undergoing distress but with high recovery potential, especially in sectors like oil & gas, metals, and mining, particularly in emerging markets [1] Shareholder Value - The company is characterized by a solid pro-shareholder attitude, maintaining consistent buyback programs and dividend distributions over time [1]

Group 1 - The company TRMD has previously been identified as a strong buy, and it has recently exceeded earnings estimates, although rates have not gained significant momentum [1] - The analyst has a diverse professional background across various industries, which contributes to a comprehensive investment perspective [1] - The investment strategy focuses on cyclical industries, aiming for substantial returns during economic recovery while also incorporating fixed-income investments to balance risk [1]

Core Viewpoint - TORM plc has successfully completed a capital reduction of USD 180 million and the cancellation of 493,371 A-shares, as confirmed by the High Court of Justice in England and Wales [1][2]. Group 1: Capital Reduction Details - The capital reduction was approved by shareholders during the Annual General Meeting held on April 16, 2025, and does not involve any distribution or payment of capital by the company [2]. - Following the capital reduction and cancellation, TORM's share capital is now USD 979,411.95, divided into 97,941,193 A-shares, one B-share, and one C-share, with a total of 97,941,193 votes attached to the A-shares [3]. Group 2: Company Overview - TORM is recognized as one of the world's leading carriers of refined oil products, operating a fleet of product tanker vessels with a strong commitment to safety, environmental responsibility, and customer service [3]. - The company was founded in 1889 and conducts business globally, with shares listed on Nasdaq in Copenhagen and New York [3].

Group 1 - The global shipping market is experiencing a temporary relief due to a 90-day truce between the US and China, allowing market participants more time to adjust to higher worldwide tariff rates [1] - Despite the truce, uncertainty remains in the market, indicating that challenges may still persist for shipping companies [1]