The market expects TORM PLC (TRMD) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on Au ...

For those looking to find strong Transportation stocks, it is prudent to search for companies in the group that are outperforming their peers. Is TORM PLC (TRMD) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Transportation sector should help us answer this question. TORM PLC is one of 135 individual stocks in the Transportation sector. Collectively, these companies sit at #16 in the Zacks Sector Rank. The Zacks Sector Rank includes 1 ...

Dikuch Thesis TORM plc (NASDAQ:TRMD) is one of those stocks that I just have to trust the facts. Despite the significant rise in stock price since my last analysis, the facts show TRMD can generate a healthy yield, supported by increased refinery output in the Middle East and Africa. The additional refinery capacity in these areas should maintain the strong demand for tanker vessels even as new builds begin to hit the waters in growing numbers in 2025. By maintaining balance, I expect market conditions to b ...

Exhibit 99.1 Highlights "Our strong performance extended into the first quarter of 2024, supported by favorable market conditions and the timely delivery of vessels acquired in 2023," says Jacob Meldgaard, adding: "Sustained geopolitical tensions continue to contribute to TORM's strong results." Results In the first quarter of 2024, TORM grew time charter equivalent earnings (TCE) to USD 330.7m (2023, same period: USD 265.0m) and realized an EBITDA of USD 265.8 m (2023, same period: USD 198.5m) and a net pr ...

Financial Data and Key Metrics Changes - TORM reported a TCE of $331 million and an EBITDA of $266 million for Q1 2024, reflecting strong financial performance [3][21] - The net profit for the quarter amounted to $209 million, with an adjusted profit of $192 million, up 25% compared to the previous year [25][46] - The company declared a dividend of $1.50 per share, continuing a positive trend in cash distributions to shareholders [9][50] Business Line Data and Key Metrics Changes - TORM's fleet size is now 89 vessels after divesting an older MR vessel, indicating a stable fleet size compared to the previous year [33] - The company achieved TCE rates exceeding $43,000 per day, with LR2s at over $54,000, LR1s around $48,000, and MRs at approximately $39,000 per day [22][47] - The fleet had a total of 7,698 earning days, significantly higher than the 6,732 days in the same quarter last year [47] Market Data and Key Metrics Changes - Trade volumes of refined oil products increased by 4% compared to the same quarter last year, supported by strong market fundamentals [36] - The share of global clean petroleum products trade transiting the Suez Canal declined from 12% to 4%, leading to increased ton-mile demand for product tankers [12] - The global product tanker demand in terms of ton-mile increased by 8% last year, with an additional estimated 5% increase due to disruptions in the Red Sea [20] Company Strategy and Development Direction - TORM is focused on balancing growth investments with shareholder returns, as evidenced by the recent dividend declaration [9][50] - The company is actively scouting for opportunities to enhance fleet capacity while managing asset values amid a dynamic market [66] - The geopolitical environment is expected to support longer ton-mile transportation, which aligns with TORM's strategic focus [70][74] Management's Comments on Operating Environment and Future Outlook - Management noted that geopolitical tensions have reshaped product tanker trade flows, leading to longer trading distances and increased demand [5][10] - The outlook for the second quarter of 2024 anticipates continued seasonality and volatility, with expectations for longer trade distances [37] - TORM updated its guidance range for TCE earnings to between $1.1 billion and $1.35 billion and EBITDA between $800 million and $1,050 million for the full year [51] Other Important Information - The company has maintained a stable loan-to-value ratio in the range of 25% to 30%, reflecting strong capital management [23] - The order book for product tankers stands at 15% of the fleet, with expectations of limited net fleet growth in the coming years [17][42] Q&A Session Summary Question: Thoughts on increasing coverage with the current order book and market liquidity - Management indicated that there is a growing interest among clients to hedge against a strong market, suggesting potential for longer contracts [58][71] Question: Strategy regarding fleet additions versus subtractions - Management acknowledged a stable fleet size with one vessel added and one divested, while remaining open to future opportunities that present a good risk-reward scenario [66][68]

Financial Performance - TORM reported a revenue of USD 1,520 million in 2023, an increase of 5.3% compared to USD 1,443 million in 2022[12]. - Time charter equivalent (TCE) earnings reached USD 1,084 million, up from USD 982 million in the previous year, reflecting a 10.4% increase[12]. - EBITDA for 2023 was USD 848 million, representing a 14.1% increase from USD 743 million in 2022[12]. - The net profit for the year was USD 648 million, compared to USD 563 million in 2022, marking a 15.1% increase[12]. - The adjusted return on invested capital (RoIC) was 27.6% in 2023, slightly down from 28.1% in 2022[12]. - TORM's equity ratio improved to 58.0% in 2023, up from 57.5% in 2022[12]. - The company declared a dividend of USD 4.42 per share for Q1-Q3 2023, compared to USD 4.63 in the same period of 2022[12]. - Proposed dividend per share for Q4 2023 is USD 1.36[12]. - TORM's total assets increased to USD 2,870 million in 2023, up from USD 2,614 million in 2022[12]. - TORM achieved record earnings in 2023, with a net profit of USD 648 million, representing a 15.1% increase from USD 563 million in 2022[22]. - The company declared and proposed dividends totaling USD 497 million in 2023, equivalent to 77% of net profit and 19% of market capitalization at year-end[29]. - TORM's adjusted Return on Invested Capital (ROIC) for 2023 was 27.6%, demonstrating superior performance compared to industry peers[25]. - The total TCE earnings for 2023 amounted to USD 1,084 million, with a net profit of USD 648 million, and TCE/day across all vessel classes was USD 37,124[47]. - TORM declared a total dividend of USD 497 million for 2023, including a proposed dividend of USD 126 million for the fourth quarter[83]. Fleet and Operations - The fleet was expanded to 90 vessels, with the acquisition of nine LR2 and seven LR1 vessels, enhancing long-haul capabilities[26]. - TORM operates a fleet of 90 vessels across all major product tanker classes, with a net loan-to-value (LTV) of USD 3,495 million and an adjusted return on invested capital (RoIC) of 27.6%[46]. - Approximately 90% of TORM's coverage in 2023 was through forward freight agreements (FFAs), allowing for increased operational leverage in a strong market[62]. - TORM's operational efficiency was supported by the One TORM platform, which integrates commercial and technical management, optimizing vessel positioning and performance[24]. - The company actively participated in the Tanker Security Program (TSP) with Seabulk, enhancing fleet flexibility and access to exclusive markets[28]. - TORM's fleet optimization strategy includes the acquisition of 23 new vessels and the sale of 11 older vessels, increasing the DWT ratio of LR vessel classes from approximately 40% to 50%[67][82]. - TORM's investment in fleet renewal included the delivery of 12 new vessels in 2023, contributing to the increase in primary/hybrid data[156]. Sustainability and Emissions - The company aims for a path towards zero emissions by 2050, with a 2030 energy transition plan in place[2]. - TORM achieved a 39.6% reduction in carbon intensity compared to 2008, nearing its 2025 target of a 40% reduction[31]. - TORM aims for zero CO2 emissions from its fleet by 2050, with specific performance measures in place to achieve this goal[91]. - The company is investigating opportunities to diversify its cargo capabilities, with plans to increase the number of vessels certified to carry chemicals from 17 to 26[71]. - TORM's energy transition plan includes known technologies to achieve a 40% CO2 intensity reduction by 2025, ahead of the IMO's target[91][96]. - TORM achieved a 39.6% reduction in annual emissions compared to the IMO baseline (2008), with a target of a 45% reduction by 2030[46][91]. - TORM's climate-related scenario analysis identified four financially material climate-related risks and three opportunities, informing the corporate strategy process[172]. - The company is actively collaborating on sustainable solutions to address infrastructure gaps for green fuels, which are essential for achieving zero emissions[104]. - TORM's safety performance in 2023 was measured at 0.32 lost time accident frequency (LTAF) per million exposure hours, with a target of 0.30 for 2030[137]. - The company has integrated energy efficiency initiatives into its annual budgeting process to ensure adequate funding for carbon reduction efforts[98]. - TORM continues to refine its Scope 3 emissions reporting to enhance data accuracy and awareness across its value chain[149]. - In 2023, TORM's primary/hybrid data increased from 75% to 92%, significantly impacting the Scope 3 emissions calculation, where Category 2 (capital goods – vessels and modifications) accounted for 70% of total emissions, up from 32% in 2022[155][156]. - TORM's Scope 1 CO2 emissions rose due to an increase in fleet size from 78 to 82 vessels and operating days increased from 29,610 to 30,605[158]. - Total greenhouse gas (GHG) emissions for 2023 increased, but TORM achieved a reduction in carbon intensity, with the Annual Efficiency Ratio (AER) decreasing from 5.15 to 4.93[161][162]. - TORM updated its emission factors for Scope 3 spend-based data, resulting in a 12% reduction in total CO2 emissions[157]. - The company engaged in various industry collaborations, including the Mærsk McKinney Møller Center for Zero Carbon Shipping, to promote sustainable practices[191]. Governance and Reporting - The company has established a new team dedicated to ESG reporting, enhancing its focus on sustainability and transparency[129]. - TORM is preparing for the significant impact of the CSRD in 2024, focusing on comprehensive reporting and double materiality assessments[174][175]. - The company is committed to achieving at least 35% of its leadership positions held by women by 2030[141].

Market Volatility and Cyclical Nature of Product Tanker Sector - The product tanker sector is cyclical and volatile, leading to potential reductions and volatility in charter rates, vessel values, and operational results[48] - Product tanker freight rates increased by 9% in 2023, reaching $37,124/day compared to $34,154/day in 2022[53] - Geopolitical events, including sanctions on Russian oil products and Middle East conflicts, significantly impacted the product tanker market in 2023, leading to longer sailing patterns and increased rate volatility[58][59] - Product tanker charter hire rate volatility increased due to over-supply and sanctions on Russian exports[70] - Seasonal fluctuations in product tanker demand, with stronger revenues in fall and winter months[72] Dependence on Product Tanker Segment and Customer Concentration - The company's revenues are heavily dependent on the product tanker segment, making it vulnerable to adverse developments in this market[48] - A substantial portion of the company's revenues is derived from a limited number of customers, and the loss of any of these customers could result in a significant loss of revenues and cash flow[50] - 20 customers accounted for approximately 73% of TORM's revenue in 2023, highlighting significant customer concentration risk[162] Environmental and Regulatory Risks - The company is subject to complex environmental laws and regulations that can adversely impact its operations, cash flows, and financial position[48] - Climate change and greenhouse gas restrictions may negatively impact the company's operations and markets[48] - Compliance with environmental laws and regulations may require costly equipment or operational changes, affecting financial condition[86][88] - The Hong Kong Convention for ship recycling will enter into force in June 2025, requiring ships to carry an inventory of hazardous materials and undergo surveys throughout their operational lives[94] - The EU Ship Recycling Regulation (ESSR) mandates that EU-flagged vessels of 500 gross tonnage and above can only be recycled at facilities on the European List, which currently includes only eight facilities in Turkey[97] - The European Waste Shipment Regulation (EWSR) requires non-EU flagged ships departing from EU ports to be recycled only in OECD member countries, potentially reducing revenue from vessel residual values[98] - The IMO 2020 global sulfur cap of 0.5% has led to the adoption of scrubbers, but open-loop scrubbers are banned in several regions, including Singapore, China, and parts of the U.S.[99] - The IMO aims to reduce carbon dioxide emissions per transport work by at least 40% by 2030 and total annual greenhouse gas emissions by at least 50% by 2050 compared to 2008 levels[100] - The MEPC 80 strategy targets net-zero greenhouse gas emissions from international shipping by 2050, with a 20-30% reduction by 2030 and 70-80% by 2040 compared to 2008[101] - The EU Emissions Trading Scheme (ETS) will phase in obligations for shipping companies to surrender allowances: 40% in 2024, 70% in 2025, and 100% in 2026[102] - The IMO's Energy Efficiency Existing Ship Index (EEXI) and Carbon Intensity Indicator (CII) require ships to meet specific energy efficiency and carbon intensity reduction targets[105] - Ships above 400 gross tonnage must have an approved Ship Energy Efficiency Management Plan (SEEMP) on board by January 1, 2023, with additional requirements for ships above 5,000 gross tonnage[106] ESG and Investor Pressure - Increasing scrutiny on Environmental, Social, and Governance (ESG) policies may impose additional costs or expose the company to additional risks[48] - The EU Taxonomy may increase the cost of capital or reduce access to financing for companies shipping fossil fuels, as they are considered non-aligned with green criteria[104] - The SEC has proposed new rules requiring public companies to include extensive climate-related information in their filings, aiming to curb "greenwashing" practices[111] - The company may face increasing pressure from investors and lenders to prioritize sustainable energy practices and reduce its carbon footprint, potentially impacting its access to capital[112] - Certain investors and lenders may exclude oil transport companies from their portfolios due to ESG factors, limiting the company's ability to access debt and equity capital markets[113] - The company may incur additional costs and require resources to monitor, report, and comply with ESG requirements, which could adversely affect its financial condition[113] Operational Risks and Fleet Management - Operational risks in the product tanker industry could lead to unexpected dry-docking costs, delays, or total loss of vessels[48] - The company's aging product tanker fleet may lead to increased operating costs and decreased competitiveness, potentially affecting earnings and the ability to obtain profitable charters[50] - Damage to vessels due to operational risks could result in unexpected dry-docking costs, loss of earnings, and reputational harm[119][121] - TORM's product tanker fleet had an average age of 10 years as of December 31, 2023, with increasing maintenance costs and potential competitiveness challenges[167] - Older vessels in TORM's fleet face higher cargo insurance rates and stricter compliance requirements, potentially reducing tradability[168] - TORM's strategy includes maintaining a balanced portfolio based on return on invested capital, but the aging fleet and potential for more fuel-efficient vessels could adversely affect competitiveness[169] - Implementation of SIRE 2.0 in Q4 2022 may lead to a decline in tradability and additional vessel inspections for TORM[170] - TORM's vessels are subject to mandatory surveys and inspections, with failure potentially rendering vessels unemployable and adversely affecting financial performance[171] Financial Risks and Debt Management - The company has a significant amount of financial debt, and servicing this debt may limit liquidity available for other purposes[50] - The company's financial and operational flexibility is restricted by covenants contained in its debt facilities, which may limit its ability to comply with restrictions and financial covenants[50] - The company may face difficulties in obtaining financing or refinancing on acceptable terms, which could have a material adverse effect on its business, results of operations, and financial condition[66] - Debt service obligations require the company to dedicate a substantial portion of its cash flows from operations to payments on principal and interest, limiting its ability to obtain additional financing and make capital expenditures[214] - The company's ability to service its debt depends on future financial and operating performance, which is subject to economic conditions and other factors beyond its control[215] - Failure to comply with debt covenants and financial restrictions may lead to an event of default, potentially resulting in bankruptcy or other insolvency proceedings[218] - As of December 31, 2023, the company was in compliance with the financial covenants contained in its debt facilities[220] - Volatility of interest rate benchmarks under financing agreements could negatively affect the company's profitability, earnings, and cash flow[221] Geopolitical and Economic Risks - Economic slowdowns or political changes in the Asia-Pacific region could have a material adverse effect on the company's business and financial condition[48] - Macroeconomic factors, including rising inflation and interest rates, could adversely affect the company's business, results of operations, and financial condition[61] - China's GDP growth in 2023 was 5.2%, but economic slowdown or geopolitical tensions in the Asia-Pacific region could impact business[84] - Political instability, terrorist attacks, and international conflicts, particularly in the Middle East and Ukraine, could disrupt the company's operations and increase insurance premiums[124][126] - Economic sanctions against Russia, including restrictions on maritime transport of Russian oil, may adversely impact the company's business and operations[129] - The ongoing conflict in Ukraine and geopolitical tensions could lead to further economic sanctions, trade tariffs, or embargoes, negatively affecting the company's financial condition[130] - The company's vessels did not call at ports in Sanctioned Jurisdictions in 2023, but future calls could lead to fines, penalties, or reputational damage[132] - The company's operations may become subject to various economic and trade sanctions due to increased implementation of sanctions by the U.S., EU, and UN[133] - Non-compliance with sanctions could lead to an event of default under debt facility agreements, potentially accelerating debt repayment and causing financial harm[134] - The company may need to terminate contracts due to sanctions, adversely affecting operations and reputation[135] - Economic sanctions related to Russia's war against Ukraine and the Israel-Hamas conflict may restrict the company's operations and cargo parties[136] Competition and Market Dynamics - The company faces competition from more modern and fuel-efficient vessels, which could reduce charter hire payments and vessel resale value[142] - The company's vessels have an average age of 11 years as of December 31, 2023[142] - The company is dependent on spot charters, with quarterly MR rates ranging from $11,243/day to $45,029/day over the past five years[146] - The company may face challenges in renewing charters or securing favorable charter rates due to economic conditions and changes in supply and demand[147] - TORM received two cargo claims in 2022, with one settled and the other ongoing, potentially affecting business with an immaterial effect[154] Financial Performance and Liquidity - The company's financial results are reported in U.S. dollars and prepared in accordance with IFRS Accounting Standards[38] - As of December 31, 2023, TORM had available liquidity of $638.1 million, including $295.6 million in cash and cash equivalents and $342.5 million in undrawn committed credit facilities[163] - The company's product tanker fleet realized average spot TCE earnings of $37,124/day in 2023[146] - As of December 31, 2023, the company had interest-bearing debt of $1,069.0 million and cash and cash equivalents including restricted cash of $295.6 million, resulting in net debt of $773.4 million[211] - In January 2024, the company issued five-year senior unsecured bonds of $200 million with a fixed coupon of 8.25%, payable semi-annually, to partly finance the acquisition of five LR2 eco vessels[213] Legal and Compliance Risks - Compliance with Sarbanes-Oxley Section 404(a) and 404(b) requires significant accounting expenses and management efforts, potentially impacting financial performance[176] - The company may be subject to litigation, which could result in substantial legal fees, damages, or reputational damage, potentially affecting its future performance and financial position[196] - The company estimates that its U.S. federal income tax liability for the taxable year ended December 31, 2023, would have increased by approximately $8.6 million if the benefits of Section 883 and applicable U.S. income tax treaties were unavailable[186] - The company may face a non-current tax liability of $45.2 million related to held-over gains if its participation in the Danish tonnage tax scheme is abandoned or if its level of investments and activities is significantly reduced[187] Cybersecurity and Fraud Risks - The company's IT systems, including those related to vessel operations, may be compromised by cyberattacks, leading to potential disruptions and loss of business information[206] - Cybercrime attacks could lead to significant expenses and material adverse effects on the company's future performance, results of operations, cash flows, and financial position[207] - The company has implemented a fraud awareness campaign and additional fraud prevention processes in cooperation with leading fraud prevention specialists[204] Currency and Hedging Risks - The company is exposed to fluctuations in foreign exchange rates due to parts of its revenues being received and operating expenses paid in currencies other than United States dollars[197] - The company may experience currency exchange losses if it has not fully hedged its exposure to foreign currencies, particularly Danish Krone (DKK), Euro (EUR), Indian Rupee (INR), and Singapore Dollar (SGD)[198] - The company uses derivative instruments such as forward freight agreements (FFAs) to hedge exposure to fluctuations in the charter market, interest rates, foreign exchange rates, and bunker prices[199] Labor and Human Resources Risks - Labor disputes, including strikes or work stoppages, could have a material adverse effect on the company's operations and financial position[122] - TORM faces challenges in attracting and retaining highly skilled personnel, which could adversely affect operations and financial performance[177] Insurance and Risk Management - The company carries insurance to protect against accident-related risks, including marine hull and machinery insurance, cyber and crime insurance, protection and indemnity insurance, crew insurance, and war risk insurance[191] Shareholder and Securities Risks - U.S. and other non-U.K. holders of the company's Class A common shares may not be able to exercise pre-emptive subscription rights or participate in future offerings due to securities laws in certain jurisdictions[200] Energy Transition and Demand Shifts - A shift in consumer demand away from oil and oil products towards alternative energy sources could materially affect the company's business[48] - Shift in consumer demand away from oil and oil products towards other energy sources could negatively impact demand for product tankers[73] - IEA forecasts "peak oil" in the late 2020s, while OPEC predicts it will not be reached until at least 2045[75] - Electric car sales reached 14.1 million in 2023, up 34% from 2022, with oil demand for road transport projected to peak around 2025[76] Piracy and Security Risks - Acts of piracy in regions like the Gulf of Guinea and the Red Sea could adversely affect operations and increase costs[77][78][79] Fuel Costs and Profitability - Rising fuel prices may adversely affect profitability, with fuel being the largest expense in shipping operations[83]

Q3 2023 RESULTS TELECONFERENCE AND WEBCAST 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, objectives, goals, strategies, f ...

Exhibit 99.1 Highlights "The strong and sustained market for product tankers has resulted in historical high TCE earnings for the first nine months of 2023, that are 26% higher than last year. We expect a strong ending to the year, driven by seasonal factors and continued favorable market conditions," says Jacob Meldgaard and continues: "This quarter, we will return USD 123.2m to our shareholders as dividend." Results Coverage Business highlights TORM INTERIM RESULTS FOR THE THIRD QUARTER AND NINE MONTHS EN ...

TORM plc (NASDAQ:TRMD) Q3 2023 Earnings Conference Call November 9, 2023 8:00 AM ET Company Participants Andreas Abildgaard-Hein - Investor Relations Jacob Meldgaard - Executive Director and Chief Executive Officer Kim Balle - Chief Financial Officer Conference Call Participants Jon Chappell - Evercore Bendik Nyttingnes - Clarksons Securities Operator Thank you for standing by. My name is Dana Ken and I’ll be your conference operator today. At this time, I would like to welcome everyone to the TORM plc Nine ...