TORM plc(US:TRMD)2025-08-14 10:06Financial Performance - In Q2 2025, TORM generated time charter equivalent earnings (TCE) of USD 208.2 million, a decrease of 36% from USD 325.9 million in Q2 2024[2][12] - Adjusted EBITDA for Q2 2025 totaled USD 129.0 million, down from USD 251.1 million in the same period last year, reflecting a decline of 48.7%[2][12] - Net profit for Q2 2025 was USD 58.7 million, compared to USD 194.2 million in Q2 2024, representing a year-over-year decline of 69.8%[2][12] - For the first half of 2025, TORM achieved TCE of USD 422.2 million, down 35.7% from USD 656.6 million in the same period of 2024[3][12] - The average TCE rate per day in Q2 2025 was USD 26,672, a decrease of 37% from USD 42,057 in Q2 2024[5][14] - In Q2 2025, TORM reported revenue of $315.2 million, a decrease of 28% compared to $437.7 million in Q2 2024[59] - Operating profit (EBIT) for Q2 2025 was $74.6 million, a decline of 63% from $204.3 million in Q2 2024[59] - Basic earnings per share for Q2 2025 were $0.60, compared to $2.08 in Q2 2024, reflecting a significant decline[59] - The total comprehensive income for Q2 2025 was $59.0 million, down from $192.2 million in Q2 2024[61] - Net profit for Q1-Q2 2025 was $121.6 million, a decrease of 69.9% compared to $403.4 million in Q1-Q2 2024[69] - Revenue for Q1-Q2 2025 was $644.3 million, down 26.9% from $881.7 million in Q1-Q2 2024[71] - Operating profit (EBIT) for Q1-Q2 2025 was $157.0 million, a decline of 63.3% from $427.0 million in FY 2024[71] Assets and Liabilities - Total assets as of June 30, 2025, were USD 3,396.7 million, a decrease of USD 72.9 million since the end of 2024[20] - TORM's fleet had a market value of USD 2,887.6 million as of June 30, 2025, down from USD 3,730.4 million a year earlier[10] - Total liabilities decreased to USD 1,289.4 million as of June 30, 2025, down USD 105.4 million from December 31, 2024, primarily due to reduced borrowings[24] - Total current liabilities decreased to USD 266.1 million as of June 30, 2025, from USD 287.7 million a year earlier, a decrease of 7.0%[62] - Total non-current liabilities decreased to USD 1,023.3 million as of June 30, 2025, down from USD 1,134.1 million a year prior, a reduction of 9.8%[62] - Total assets as of June 30, 2025, amounted to USD 3,384.9 million, a decrease of 15.2% compared to USD 3,396.7 million on June 30, 2024[72] - Total liabilities decreased to USD 1,289.4 million as of June 30, 2025, from USD 1,421.8 million on June 30, 2024, a reduction of 9.3%[75] Cash Flow and Financing - Net cash flow from operating activities for the first half of 2025 was USD 244.4 million, a decrease from USD 468.4 million in the same period of 2024[25] - Cash and cash equivalents, including restricted cash, decreased to USD 369.8 million from USD 532.4 million on June 30, 2024, representing a decline of 30.6%[62] - TORM secured financing commitments of up to USD 857 million to refinance existing loans and lease agreements, enhancing capital flexibility[11] - Net interest-bearing debt stood at USD 767.0 million, with a net debt loan-to-value ratio of 27.0% for the tanker segment[81] - Total borrowings as of June 30, 2025, were USD 1,126.0 million, down from USD 1,258.0 million in the previous year, indicating a 10.5% reduction[94] - The company reported a net cash flow from investing activities of $48.5 million in Q1-Q2 2025, contrasting with a negative cash flow of $150.0 million in Q1-Q2 2024[69] Dividends and Shareholder Returns - TORM's interim dividend for Q2 2025 was set at USD 0.40 per share, totaling an expected payment of USD 39.2 million, equivalent to 67% of net profit[28] - Declared dividend per share for Q2 2025 was USD 0.40, down from USD 1.80 in Q2 2024, representing a 77.8% decrease[99] - The company paid dividends totaling USD 97.7 million during the first half of 2025[63] Market Conditions and Outlook - The product tanker market saw a 2% year-on-year decline in clean petroleum product trade volumes in Q2 2025[30] - LR2 rates in the Middle East nearly tripled due to geopolitical tensions, reaching above USD 50,000 per day before stabilizing around USD 30,000[31] - The company anticipates further challenges due to economic uncertainties and market fluctuations affecting future performance[56] - TORM expects to remain in compliance with financial covenants for the remainder of 2025[94] Fleet and Operations - TORM's fleet included 66 owned product tankers and 24 vessels under sale-and-leaseback agreements as of June 30, 2025[47] - TORM's total fleet decreased from 91 vessels in Q1 2025 to 90 vessels in Q2 2025, with a projected increase to 88 vessels by Q3 2025[51] - The company sold three vessels in Q2 2025, including the LR2 vessel TORM Mathilde and two MR vessels, TORM Voyager and TORM Discoverer[49] - TORM exercised purchase options for 13 leaseback vessels, with the first four transitioning to full ownership in Q3 2025[50] Employee and Operational Costs - Total staff costs for Q2 2025 amounted to USD 22.1 million, a slight increase from USD 21.4 million in Q2 2024, representing a 3.3% year-over-year growth[86] - The average number of seafarers employed as of June 30, 2025, was 3,798, up from 3,291 a year earlier, indicating a 15.4% increase in workforce[86] - Total seafarer costs for the first half of 2025 reached USD 75.3 million, compared to USD 68.6 million in the same period of 2024, reflecting a 9.8% increase[88] Asset Valuation - The carrying amount of vessels and capitalized dry-docking as of June 30, 2025, was USD 2,691.7 million, an increase from USD 2,528.7 million a year prior, marking a 6.4% growth[92] - Total Net Asset Value (NAV) as of June 30, 2025, is USD 2,299.8 million, a significant decrease from USD 3,258.0 million in the previous year[128] - Total Net Asset Value per share (NAV/share) is USD 23.5 as of June 30, 2025, down from USD 34.6 a year earlier[128]