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Torm posts profit, returns USD 126 million to shareholders

In the second quarter of 2023, TORM saw a 23% increase in TCE per day to 36,360 USD/day (2022, same period: 29,622 USD per day) as a result of higher freight rates. TCE earnings reached USD 308.0m (2022, same period; USD 209.6m) and EBITDA increased 54% to USD 236.8m (2022, same period: USD 153.4m) equivalent to EBITDA margin of 61.6% (2022, same period: 45.3%). Earnings were positively impacted by unrealized gains on financial instruments related to freight and bunker of USD 37.0m (2022, same period: USD -9.5m).

“During the second quarter of 2023, we experienced a continued healthy rate environment, contributing to a profit before tax of USD 184m compared to USD 107m in the same period last year,” says Jacob Meldgaard and continues: “Based on this, we will return USD 126.6m to our shareholders as dividends for the period.”

Key Figures

USDmQ2 2023Q2 2022changeQ1-Q2 2023Q1-Q2 2022changeFY 2022
Time charter equivalent earnings (TCE)  308.0  209.647%  572.9  333.072%981.5
EBITDA236.8 153.454%  435.4213.8104% 743.0
EBITDA margin %61.6%45.3% 56.2%39.0% 51.5%
Unrealized gain/(loss) on financial instruments1)  37.0  -9.5 21.2-11.1   -0.6
Return on Invested Capital (RoIC) %33.9%22.7% 31.6%13.7% 29.2%
TCE per day (USD)36,36029,62223%38,90323,15268%34,154
OPEX per day (USD)7.0536,8094%7.1706,6258%6,825
Free cash flow 89.9 96.6-7% 62.9  74.8-16%513.2

1)        Included in TCE earnings and EBITDA, but not included in TCE per day

Business highlights

In the first half of 2023, TORM has taken delivery of all seven LR1 vessels purchased in January 2023 as well as three MR vessels acquired in March 2023 and sold and delivered one MR vessel to its new owner in May, bringing the total fleet up to 87 at the end of June 2023. After the end of the quarter, TORM sold one MR vessel with expected delivery in Q3 2023.

In the second quarter of 2023, TORM completed the previously announced refinancing of bank and leasing agreements for USD 480m and further secured a USD 123m facility to be used for additional secondhand vessel financing, of which USD 50m has already been used in the second quarter. Debt maturities have been extended to 2028 and 2029.


The product tanker market remained strong but volatile in the second quarter of 2023, albeit rates were lower than in the first quarter. The lower rates are primarily attributable to refinery maintenance, lower diesel imports and destocking in the EU leading to a temporary reduction in exports and consequently a release of global vessel capacity.


TORM’s Board of Directors has today approved an interim dividend for Q2 2023 of USD 1.50 per share, resulting in an expected total dividend payment of USD 126.6m. The payment is expected on 12 September 2023, with ex-dividend date on 28 August 2023 and record date on 29 August 2023.  

Financial Outlook 2023

As of 14 August 2023, TORM had covered 72% of the 2023 full-year earning days at USD/day 36,531 and the coverage for the third quarter of 2023 was 74% at USD/day 30,534. For the individual vessel classes, the coverage for the third quarter of 2023 was 70% at USD/day 32,579 for LR2, 88% at USD/day 29,626 for LR1, and 71% USD/day 30,349 for MR.

Our financial outlook is based on our current product tanker market expectations, but we have very low visibility on TCE rates that are not yet fixed with our customers. Hence, the market rates realized during 2023 may be significantly lower or significantly higher than our current expectations.

For the full-year 2023, TCE earnings are expected to be in the range of USD 1,050m-1,175m (previous outlook: USD 1,025m-1,375m), and EBITDA is expected to be in the range of USD 775m-900m (previous outlook: USD 750m-1,100m) based on the current fleet size, including published acquisitions and divestments of vessels. We refer to the Financial Outlook 2023 in our Quarterly Report for the Second Quarter 2023 and our Safe harbor statements as to the future.

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