Financial Data and Key Metrics Changes - The company reported a TCE income of $50,300 per available day and $48,100 per calendar day, exceeding the guidance of $47,000 per day for the quarter [3] - Profit after minority interest for Q4 was $104 million, translating to an EPS of $0.69 [3][29] - The net profit after tax for the quarter was $123 million, including contributions from BW LPG India and BW Product Services [28] - The board declared a dividend of $0.57 per share, representing a 100% payout of shipping NPAT, exceeding the guidance set by the dividend policy [4][29] Business Line Data and Key Metrics Changes - BW Product Services reported a gross profit of $27 million and a profit after tax of $23 million for Q4 [3] - Realized trading results for the full year 2025 reached $66 million, with a strong realization of $12 million in Q4 [3][26] - The time charter portfolio for Q4 was 44%, with 33% being fixed rate time charters [24] Market Data and Key Metrics Changes - U.S. propane inventories were reported at 100 million barrels at the end of 2025, significantly above the 85 million barrels at the end of 2024 [9] - The high inventory levels contributed to downward pressure on U.S. LPG prices, supporting a wide arbitrage with the U.S. Far East price differential [9][10] - Chinese LPG imports from North America and the Middle East fell by 3% in 2025, but imports are expected to rise again due to disruptions in Middle Eastern supply [11][12] Company Strategy and Development Direction - The company is focusing on optimizing its fleet and time charter contracts to ensure stability amid market uncertainties [24] - There is an ongoing active drydocking program in 2026, with 13 vessels scheduled for drydocking [4] - The company is considering further expansion of its Indian flag fleet, depending on market conditions and employment opportunities [72] Management's Comments on Operating Environment and Future Outlook - Management highlighted the impact of geopolitical tensions in the Middle East on market dynamics, with a focus on ensuring the safety of crew and vessels [5][20] - The company expects North American LPG exports to grow in the mid-single digits, while Middle Eastern exports are anticipated to grow in the high single digits once the situation normalizes [17][20] - The current fluid situation in the Middle East is increasing volatility and uncertainty in the market [19] Other Important Information - The company reported a net leverage ratio of 28.4% in Q4, down from 32.7% at the end of 2024, primarily due to lower lease liabilities [29] - The liquidity position remains strong with $630 million available, consisting of $226 million in cash and $387 million in undrawn credit facilities [31] Q&A Session Summary Question: Current Iranian LPG export status - Management indicated unconfirmed reports of Iranian LPG exports continuing, but no concrete news on convoys for legitimate exporters [34][36] Question: Insurance and war risk premiums - Currently, ships cannot be insured for passage through the Arabian Gulf, and the situation is fluid [38] Question: U.S. LPG export capacity utilization - Management believes U.S. terminals have some slack capacity to optimize exports, but exact visibility on April loadings is limited [46][47] Question: Impact of Iranian situation on vessels - Three vessels from the Indian-flagged fleet are in the Arabian Gulf, with minimal financial impact reported so far [56][58] Question: Trading profits and dividend distribution - Trading profits will contribute to dividend capacity, but the current declared dividend only includes shipping NPAT [64][65] Question: Future fleet expansion in India - Management is considering further acquisitions for the Indian flag fleet, depending on market conditions [72]

Financial Data and Key Metrics Changes - TORM reported a TCE of USD 208 million for Q2 2025, consistent with previous quarters, resulting in a net profit of USD 59 million and an EBITDA of USD 127 million [4][18][27] - The average TCE rates were USD 26,700 per day, with LR2s above USD 35,000, LR1s slightly above USD 27,000, and MRs around USD 23,000, indicating stable freight rates [18][19] - The company declared a dividend of USD 0.40 per share, representing a payout ratio of 67% [22] Business Line Data and Key Metrics Changes - The product tanker market has shown resilience, with benchmark earnings for MR and LR2 vessels reflecting a healthy uptick due to increased trade flows and limited growth in the CPP trading fleet [6][8] - Tonne miles have increased significantly, driven by a surge in East to West middle distillate trades, reaching a sixteen-month high [7][8] Market Data and Key Metrics Changes - Trade volumes have surged, particularly in the middle distillate sector, with inventories in North West Europe falling, necessitating increased imports [7][8] - Refinery closures in North West Europe and the U.S. West Coast are expected to reduce local product supply, increasing demand for imports [9][10][11] Company Strategy and Development Direction - TORM is focusing on fleet optimization by divesting older vessels to maintain a modern and efficient fleet [4] - The company has raised its full-year guidance for TCE earnings to USD 800 million to USD 950 million, reflecting a stronger earnings outlook [27] Management's Comments on Operating Environment and Future Outlook - Management noted that despite geopolitical uncertainties, market sentiment remains positive, with strong momentum entering Q3 [5] - The company expects continued support for trade flows and vessel utilization, driven by geopolitical factors and refinery closures [8][16] Other Important Information - TORM has secured commitments for up to USD 857 million in refinancing, enhancing liquidity and financial flexibility [24][25] - The average age of the fleet is the highest in two decades, with a significant portion of older vessels under sanctions, impacting fleet utilization [14][16] Q&A Session Summary Question: What has caused the consistency in TCE over the last nine months? - Management acknowledged the remarkable stability and indicated that it does not restrict operational flexibility, with potential for upside as market dynamics evolve [30][31] Question: Will the payout ratio increase in the future? - Management expects the payout ratio to be higher in 2026 due to a decrease in cash flow breakeven [33][34] Question: What is driving the upside in MR rates? - The increase in CPP on the water and reduced cannibalization from crude tankers have contributed to the uptick in MR rates [41][42] Question: Are asset values stabilizing? - Management believes asset prices are stabilizing and could rise if freight rates improve [48][50] Question: When will the positive effects of refinery closures be seen? - The closures in Europe are expected to impact the market positively by the end of 2025, while U.S. West Coast closures will take effect in about a year [58][60] Question: What is the impact of the Russian price cap change? - Management indicated uncertainty regarding the impact but noted that many sanctioned vessels may not easily return to mainstream trades [62][64]