Torm posts 35 million dollar loss in 2018
Danish company Torm had a loss of 35 million dollar in 2018, compared to a profit of 2 million dollar in 2017. Revenue fell from 657 million dollar in 2017 to 625 million dollar in 2018. According to the management, Torm is still among the best within its peer group.
“Torm’s commercial performance over the past year has continuously been among the best within its peer group. The product tanker market has rebounded significantly since November 2018, and looking ahead, we are well-positioned to leverage the ongoing market recovery, illustrated by a 43% increase in freight rates achieved so far in the first quarter of 2019 compared to 2018”, says Executive Director Jacob Meldgaard.
Torm realized an EBITDA of USD 121m (2017: USD 158m). The 2018 profit before tax amounted to USD -33m (2017: USD 3m). Despite negative results, Torm’s performance has been strong compared to industry peers. Return on Invested Capital (RoIC) was 0.1% (2017: 2.8%).
For the full year 2018, Torm achieved TCE rates of USD/day 12,982 (2017: USD/day 14,621). The first half of 2018 continued a trend from 2017 with healthy consumer-driven demand for refined oil products offset by inventory drawdown. The drawdowns resulted in a loss of potential trade of 4% over the period. In the third quarter of 2018, freight rates reached historically low levels due to reduced trading volumes and continued cargo cannibalization by newbuilt crude tankers opting for clean cargos on their maiden voyage. Towards the end of 2018 and early 2019, the broader tanker markets experienced a significant recovery with freight rates reaching levels last seen towards the end of 2015 and beginning of 2016.
The newbuilding program covers two LR1 and seven MR vessels with expected deliveries in 2019 and the first quarter of 2020.
As of 31 December 2018, Torm’s fleet consisted of 72 owned vessels, three chartered vessels and nine vessels on order, including vessels for which a sale has been agreed. 10% of the total earning days in 2019 were covered at USD/day 17,306. As of 5 March 2019, 85% of the total earning days were covered at USD/day 18,522 for the first quarter of 2019. 24% of the total earning days in 2019 were covered at USD/day 18,193.