Slide 1: Third Quarter 2024
07 NOVEMBER 2024 THIRD QUARTER 2024
Slide 2: Safe Harbor Statement As to The Future
Safe Harbor Statement As to The Future Matters discussed in this release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information
Slide 3: Highlights Q3 2024
Highlights Q3 2024 TCE ▪ Satisfactory start to the quarter followed by seasonal USD 263m slowdown and adverse impact from crude tankers Q3 2023: USD 244m weighing on freight rates. Adjusted EBITDA ▪ Growth in TCE as driven by slightly higher fleet-wide rates as well as a higher number of earning day
Slide 4: Short-Term Factors Easing the Geopolitical Impact on the Product Tanker Market
Short-Term Factors Easing the Geopolitical Impact on the Product Tanker Market USD/day Clarksons avg. MR benchmark Clarksons LR2 benchmark 110,000 Clarksons avg. MR benchmark - annual avg. Clarksons LR2 benchmark - annual avg. 100,000 Houthi attacks at Bab-el-Mandeb Strait 90,000 80,000 Russia’s inv
Slide 5: Geopolitics Fueling Longer Trading Distances
Geopolitics Fueling Longer Trading Distances 2023: Sanctions against Russia 2024: The Red Sea disruption ▪ The EU sanctions and G7 price cap on Russian oil products led to a trade ▪ Houthi attacks on vessels travelling through the Bab el-Mandeb Strait have led to recalibration, with both EU CPP impo
Slide 6: Ton-Mile Demand Has Remained at Supportive Levels
Ton-Mile Demand Has Remained at Supportive Levels CPP volumes and ton-miles, change y-o-y ▪ Growing global oil demand and recent changes to refinery K b/d % landscape have increased CPP volumes transported by 2% in 2024 Via Suez Canal Total trade volume (rhs) 3.5 20 Via Cape of Good Hope CPP ton-mil
Slide 7: Product Tanker Market Supported by Declining Crude Tanker Cannibalization
Product Tanker Market Supported by Declining Crude Tanker Cannibalization Diesel/gasoil volumes carried on crude tankers Historical market seasonality (2013-2023, excl. 2020) K b/d %, Crude and clean product trade volumes vs annual average from Q2 to Q1 500 3.0 Suezmax VLCC Crude CPP 450 2.5 2.2 400
Slide 8: Fleet Growth Remains Manageable Despite Increased Newbuilding Activity
Fleet Growth Remains Manageable Despite Increased Newbuilding Activity Tanker order book vs ageing fleet Product tanker order book vs average fleet age % Order book as % of the fleet Order book as % of the fleet 40 39 Capacity above 20 years as % of the fleet 70 2006 35 60 2007 30 50 25 24 2005 22 4
Slide 9: Shipyards' Strategic Choices Limiting Product Tanker Fleet Growth
Shipyards’ Strategic Choices Limiting Product Tanker Fleet Growth Product tanker deliveries and removals (m dwt) ▪ Potential additional ordering for M dwt product tankers from 2028 Scrapping forecast Confirmed order book 20 Scrapping Deliveries onwards will be impacted by 18 Deliveries of additional
Slide 10: Fundamental Drivers Supporting the Strong Product Tanker Market
Fundamental Drivers Supporting the Strong Product Tanker Market Refinery closures and capacity additions in 2020-2025 Refinery closure risk by region K b/d No. of sites 120 High risk Announced closure % of region’s capacity at risk of closure 3% Medium risk Not considered at risk 100 Low risk 17% 26
Slide 11: Financials – Third Quarter of 2024
Financials – Third Quarter of 2024 USDm 2024 Q3 2023 Q3 Change TCE 263.4 244.4 +19.0 Operating expenses -62.7 -54.2 -8.5 ▪ Increase in TCE reflecting fleet-wide rates slightly higher Adjusted EBITDA 190.9 186.6 +4.3 rates at ~ USD 33,722 driven by LR2 segment. Net profit (loss) for the period 130.7
Slide 12: Vessel Values and Net LTV Ratio
Vessel Values and Net LTV Ratio Vessel value and Net Asset Value (NAV) USDm 3,730 3,866 3,501 3,257 3,355 ▪ Increase in total vessel value 3,081 3,177 3,055 2,858 2,514 and NAV reflecting expansion of fleet, higher estimates from value value brokers, and the issuance of Vessel NAV Vessel shares as p
Slide 13: High Cash Returns to Shareholders
High Cash Returns to Shareholders ▪ Interim dividend for the third quarter of 2024 of USD 1.20 per share corresponding to an expected total dividend payment of USD 116m to be paid to the shareholders. ▪ The distribution for the quarter is equivalent to 89% of net profit and reflects TORM’s Distribut
Slide 14: Financial Outlook 2024
Financial Outlook 2024 ▪ TORM updates its full-year guidance for TCE earnings to USD 1,110 – 1,160m (previous guidance USD 1,150 – 1,350m) and for EBITDA to USD 810 – 860m (previous guidance USD 850 – 1,050m). Coverage 04 November 2024 Q4 2024 FY 2024 Earning days 8,086 31,320 Covered days 4,193 27,
Slide 15: Balancing Operational and Financial Leverage
Balancing Operational and Financial Leverage ▪ Robust cash position and high free cash flow – Ensuring financial flexibility. ▪ Secure debt maturity profile – Providing comfort for years to come. ▪ No significant CAPEX commitments – Allowing focus on strategic growth. ▪ Enhanced operational leverage
Slide 16: Q&A
Q&A 16
Slide 17: Appendix
APPENDIX 17
Slide 18: TORM at a Glance
TORM at a Glance 96 Tankers (fully delivered basis) 9 Offices ~3,400 Seafarers ~350 Land based employees ▪ TORM operates a modern and well-maintained fleet, of which the majority is scrubber-fitted with eco-design. ▪ Presence in all larger vessel classes in the product tanker market (LR2, LR1 and MR
Slide 19: Pure-Play Product Tanker Company
Pure-Play Product Tanker Company ▪ High spot market exposure – Leveraging favorable market dynamics for optimal returns. ▪ Integrated operations – Delivering superior economic results through our in-house One TORM platform. ▪ Strategic fleet renewal – Ensuring our business remains competitively posi
Slide 20: A Proud History Dating Back More Than 130 Years
A Proud History Dating Back More Than 130 Years 1889 1905 1933 1977 1980s Captain Ditlev E. Torm and Listing on the TORM Almena, TORM’s Delivery of its first product As environmental concerns top Christian Schmiegelow Copenhagen Stock first motorized vessel, is tanker vessels, TORM the global agenda
Slide 21: Continued Progress on Climate and Safety
Continued Progress on Climate and Safety SAFETY: Lost Time Accident Frequency # Accidents per 1m ▪ Close to meeting the accelerated 2025-target of a 40% Carbon Intensity working hours LTM 0.5 reduction and will work towards meeting a reduction target of 45% in 2030. 0.4 ▪ Narrowing in on the Lost Ti
Slide 22: Continuous Fleet Renewal Yields Stable Fleet Age
Continuous Fleet Renewal Yields Stable Fleet Age Average Fleet Age: ~11 Years Sales and Purchase of Vessels Sold Acquired Comments 2023: LR2 1 8 LR1 5 7 Partly share-based MR 5 7 acquisition for 8 LR2 vessels Total 11 22 2024YTD: LR2 - - LR1 - - Partly share-based MR 2 9 acquisition for 9 MR vessels
Slide 23: Oaktree is the Majority Shareholder
Oaktree is the Majority Shareholder Share information TORM’s shares are listed on the stock exchange Nasdaq Copenhagen under the ticker ‘TRMD-A’, and on the stock exchange Nasdaq New York under the ticker ‘TRMD’. Estimated shareholding as of 07 November 2024 Free flow* 42% 58% Oaktree For further co
Slide 24: TORM - a Leading Global Product Tanker Company
TORM - a Leading Global Product Tanker Company 1 2 3 One TORM platform Superior ROIC Balanced pay-out ratio Inhouse integrated commercial Consistent selective fleet Our distribution policy secures and technical management replenishment and growth has a balanced pay-out ratio which secured superior r
Slide 25: Financial Calendar 2025
Financial Calendar 2025 06 Results for the Fourth Quarter and MAR Full Year 2024 Results 16 Annual General Meeting APR 08 Interim Results for the First Quarter 2025 MAY 14 Interim Results for the Second Quarter AUG and Six Months ended 30 June 2025 Investor Relations contact: Mikael Bo Larsen 06 Int