Core Article Summary - The article discusses TORM plc (NASDAQ: TRMD) and highlights reasons why the stock is considered a buy, including its valuation being perceived as cheap [1] Disclosure and Context - The author of the article holds a beneficial long position in TRMD through stock ownership, options, or other derivatives [1] - The article represents the author's personal opinions and is not influenced by compensation or business relationships with the mentioned company [1] - Seeking Alpha clarifies that the views expressed in the article may not reflect those of the platform as a whole and that its analysts are third-party authors, including both professional and individual investors [2]

Core Insights - The global energy sector is experiencing significant changes driven by the increasing influence of renewable technology and decreasing prices, alongside rising consumer demand for greener energy sources [1] Group 1: Industry Trends - Renewable technology is becoming more influential in the energy sector as prices decline [1] - There is a growing consumer demand for greener forms of energy, indicating a shift in market preferences [1] Group 2: Analyst Background - The analyst has nearly 10 years of experience in trading and investing, focusing on technology and energy companies [1] - The analyst has a strong track record, sitting in TipRanks' Top 10% of Financial Bloggers with a 75% success rate and 19% average return [1]

Group 1 - The articles written in September highlighted a bullish outlook on the clean product trade for TORM plc and Hafnia Limited, emphasizing the ongoing polarization of the global market [1] - The author utilizes professional knowledge from the Nuclear Power industry to assess potential equities for long-term investment, focusing on income-producing equities and rental real estate for cash flow and appreciation [1] Group 2 - The author has a beneficial long position in the shares of TORM plc and PSX, indicating confidence in these investments [2]

Core Viewpoint - The article discusses TORM Plc (NASDAQ: TRMD), highlighting its strengths in fleet, balance sheet, dividend policy, and market catalysts for product tankers, while noting that it traded at 118% of its PNAV, leading to a "Hold" rating due to limited upside potential [1]. Group 1: Company Strengths - TORM Plc has a strong fleet and balance sheet, which are critical for its operational efficiency and financial stability [1]. - The company maintains a favorable dividend policy, appealing to income-focused investors [1]. - Market catalysts in the product tankers sector are identified as potential growth drivers for TORM Plc [1]. Group 2: Investment Strategy - The author emphasizes a preference for overlooked investment opportunities that offer asymmetric risk-reward profiles and attractive dividend yields [1]. - The analytical approach combines fundamental analysis with technical analysis to optimize market timing [1]. - The focus is primarily on shipping and mining enterprises, although the author is open to exploring other industries that align with their investment style [1].

07 NOVEMBER 2024 THIRD QUARTER 2024 Safe Harbor Statement As to The Future Matters discussed in this release 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 concerning plans, ...

Financial Data and Key Metrics Changes - TORM reported time charter equivalent (TCE) earnings of US$263 million and EBITDA of US$191 million for Q3 2024, despite lower-than-expected freight rates towards the end of the quarter [2][23] - The net profit for the quarter was US$131 million, slightly up compared to the same quarter last year [23] - The average TCE rates were approximately US$34,000 per day, with LR2s at nearly US$41,000, LR1s over US$33,000, and MRs above US$31,000 [24] - The return on invested capital was 20.3%, indicating a healthy business environment [25] Business Line Data and Key Metrics Changes - The fleet had 8,253 earning days in Q3 2024, an increase from 7,949 days in the previous year, with a larger share attributed to LR2s [25] - The overall TCE rate per day increased by US$700 compared to Q3 2023 [25] Market Data and Key Metrics Changes - Clean petroleum product (CPP) trade volumes increased by 2% year-to-date, supported by rising global oil demand and changes in the refinery landscape, leading to a 10% increase in ton-mile demand [7] - However, actual loaded volumes trended down, falling below year-ago levels in October, with Middle East exports down 8% month-on-month [8][10] - The share of global CPP trade transiting the Suez Canal declined from 12% to 4%, with redirected trade taking longer routes [6] Company Strategy and Development Direction - TORM is focused on fleet renewal, having acquired eight second-hand MR vessels for US$340 million, with six already delivered [3][4] - The company aims to maintain a strong cash position and financial flexibility to seize market opportunities [34] - TORM plans to distribute 100% of free cash after debt repayments to shareholders, reinforcing trust in its long-term business model [36] Management's Comments on Operating Environment and Future Outlook - Management noted that geopolitical tensions have reshaped product tanker trade towards longer distances, impacting rates and demand [5][6] - The company expects TCE earnings for 2024 to be between US$1.11 billion and US$1.16 billion, with EBITDA projected between US$810 million and US$860 million [33] - Management acknowledged the current softness in rates due to lower demand from refinery outages and maintenance [40] Other Important Information - TORM declared a dividend of US$1.20 per share for Q3 2024, with a payout ratio of 89% relative to basic EPS [28] - The net interest-bearing debt remained flat at US$825 million, with a net loan-to-value ratio of 23.1% [26][27] Q&A Session Summary Question: Thoughts on the product market and impact of VLCCs and Suezmaxes - Management indicated that Q3 was affected by crude cannibalization, but normalization is occurring in Q4, with lower volumes from the Middle East contributing to rate softness [38][40] Question: Future fleet renewal transactions - Management stated that they are staying agile and could engage in either acquiring or selling assets, but no specific plans are in place currently [41] Question: Strategy for share-based vessel acquisitions - Management clarified that current public market pricing does not support the type of share-based deals previously executed, indicating a need for market adjustments before considering such transactions again [43]

TORM PLC (TRMD) came out with quarterly earnings of $1.35 per share, beating the Zacks Consensus Estimate of $1.29 per share. This compares to earnings of $1.36 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 4.65%. A quarter ago, it was expected that this company would post earnings of $1.99 per share when it actually produced earnings of $2.02, delivering a surprise of 1.51%.Over the last four quarters, the company has surpa ...

A STORE D THING L TH 0 4 TIP H 4 Holly 4 17 l I HeliRy Seeking Alpha Q | PODCAST SERIES Listen and subscribe to the Marketplace Roundtable on these podcast platforms: TORM (NASDAQ:TRMD) CEO Jacob Meldgaard joined Value Investor's Edge Live on Sept. 19, 2024, to discuss product tanker markets and ongoing company prospects. TRMD has notably expanded their fleet and reduced balance sheet leverage over the past 2-3 years and now has one of the largest publicly traded tanker fleets with a current market cap of r ...

A STORE D THING L TH 0 4 TIP H 4 Holly 4 17 l I Oil Tanker HeliRy In the two weeks ended September 10, TORM plc (NASDAQ:TRMD) crashed approximately 14% to $32.26, a level not seen in years. | --- | --- | --- | |---------------|-------|-------| | | | | | Sep. 10, 2024 | 33.09 | | | Sep. 09, 2024 | 32.91 | | | Sep. 06, 2024 | 33.42 | | | Sep. 05, 2024 | 33.42 | | | Sep. 04, 2024 | 33.91 | | | Sep. 03, 2024 | 35.46 | | | Aug. 30, 2024 | 36.29 | | | Aug. 20, 2024 | 36.82 | | | Aug. 28, 2024 | 38.02 | | | --- | ...

I II n djgunner Thesis The last 10 days have been rough for owners of TORM plc (NASDAQ:TRMD) with the share price declining roughly 15%. The stock has been hammered by both a general market sell-off, as well as seasonality taking its toll on charter rates. However, the global refinery market continues to polarize, with production moving out of Europe and shifting toward the Middle East and Africa. This dynamic will continue the trend of a structural shift in the global clean product trade. At the currently ...