"2024 was a strong year for TORM, driven by increased ton-mile demand and limited fleet-growth”, says Jacob Meldgaard, adding “Throughout the year, we strengthened our market position, expanding TORM’s fleet through partly share-based transactions, and delivered significant dividends to our shareholders. The current market outlook is characterized by unpredictable geopolitical changes that may impact results
Financial Results
For the year ended 31 December 2024, TORM's time charter equivalent earnings (TCE) amounted to USD 1,135m (2023: USD 1,084m). TORM realized an EBITDA of USD 851m including unrealized gains on financial instruments of USD 7m (2023: USD 848m including unrealized gains on financial instruments of USD 2m) and a net profit for the year of USD 612m (2023: USD 648m).
In 2024, the product tanker market demonstrated strong but volatile performance, supported by increased ton-mile demand impacted by geopolitical tensions and refinery dislocation, which altered global shipping routes and extended voyage distances. Limited fleet growth throughout the year further bolstered the favorable supply-demand balance.
In the first half of the year, the market remained robust, however, during the third quarter, the market dynamics shifted as crude tankers entered the clean product trade, capturing a significant share of additional demand. The year concluded with anticipated seasonal rate improvements failing to materialize, signaling changes in underlying market dynamics. Despite this softer finish, 2024 highlighted both the challenges and opportunities shaping the product tanker market.
In this market, TORM achieved TCE fleet-wide rates of USD/day 36,061 on average (2023: USD/day 37,124), and available earning days increased to 31,287 (2023: 29,152). Our vessel class LR2 achieved TCE rates of USD/day 45,053, the LR1 vessels achieved TCE rates of USD/day 37,014, and the MR vessels achieved TCE rates of USD/day 32,948.
For the full year of 2024, Return on Invested Capital amounted to 24.3% (2023: 30.4%) primarily reflecting an increase in invested capital following additional vessel acquisitions.
During the year, the weighted number of average outstanding shares excluding treasury shares increased to 93.6m shares (2023: 83.6m shares) which combined with the net profit led to basic EPS of USD 6.54 (2023: USD 7.75).
In the fourth quarter of 2024, TORM achieved TCE of USD 215m (2023, same period: USD 266m) and an EBITDA of USD 142m including unrealized gains on derivatives of USD 7m (2023, same period: USD 234m including unrealized losses on derivatives of USD -11m) and a net profit of USD 77m (2023, same period: USD 185m), underscoring the volatile nature of the current market dynamics for the product tanker industry. In this market, TORM achieved TCE rates of USD/day 25,775 on average (2023, same period: USD/day 37,985), and available earning days increased to 8,054 (2023, same period: 7,312).
Vessel Transactions
To ensure the continued optimization and efficiency of our fleet, TORM will periodically purchase younger secondhand vessels while divesting older ones. This approach allows TORM to maintain a high-performing and environmentally friendly fleet that aligns with market demands and operational goals.
During the fourth quarter of 2024, TORM completed the sales of the two 2005-06 built MR vessels TORM Helvig and TORM Republican.
Thus, by the end of December 2024, TORM had 94 owned and leased vessels in the LR2, LR1, and MR vessel classes.
Distribution of Dividend for the Fourth Quarter of 2024
TORM's Board of Directors has today approved an interim dividend for the fourth quarter of USD 0.60 per share to be paid to the shareholders corresponding to an expected total dividend payment of USD 58.4 m. The distribution for the quarter is equivalent to 75% of net profit and reflects the Distribution Policy. The payment date is 02 April 2025 to all shareholders on record as of 20 March 2025, and the ex-dividend date is 19 March 2025 for the shares listed on Nasdaq OMX Copenhagen and 20 March 2025 for the shares listed on Nasdaq New York.
Financial Outlook 2025
TORM's financial outlook is based on our current product tanker market expectations. We do, however, have limited visibility on TCE rates that are not yet fixed with our customers, hence these rates may be significantly lower or significantly higher than our current expectations.
For the full-year 2025, TCE earnings are expected to be in the range of USD 650 - 950m (2024: USD 1,135m), and EBITDA is expected to be in the range of USD 350 - 650m (2024: USD 851m) based on the current fleet size, including published acquisitions and divestment of vessels.
As of 03 March 2025, TORM had covered 26.9% of the 2025 full-year earning days at USD/day 28,916. Hence, 73% of the 2025 full-year earning days are subject to change.
Thus as 24,189 earning days in 2025 are unfixed as of 03 March 2025, a change in freight rates of USD/day 1,000 will - all other things being equal - impact the EBITDA by USD 24m.
Also as of 03 March 2025, 84% of the Q1 2025 earning days were covered at USD/day 26,612. For the individual vessel classes, the Q1 2025 coverage was 92% at USD/day 32,397 for LR2, 81% at USD/day 23,540 for LR1 and 81% at USD/day 24,870 for MR.
Источник:www.torm.com