Slide 1: Second Quarter 2024
15 AUGUST 2024 SECOND 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: Today's Presenters
Today’s Presenters JACOB MELDGAARD ▪ Executive Director of TORM plc ▪ CEO of TORM A/S since 2010 ▪ Member of the Board of Danish Shipping ▪ Member of the Board of Danish Ship Finance ▪ Member of the Board of the International Chamber of Shipping ▪ 30+ years of shipping experience KIM BALLE ▪ Chief F
Slide 4: Highlights Q2 2024
Highlights Q2 2024 TCE ▪ Very satisfactory result driven by continuous USD 326m favorable market dynamics and strong execution. Q2 2023: USD 308m ▪ Growth in TCE as markets remain strong with Adjusted EBITDA soaring freight rates reflecting high ton-mile demand and manageable newbuilding deliveries.
Slide 5: Geopolitical Tensions Have Lifted Product Tanker Rates to 'New Normal'
Geopolitical Tensions Have Lifted Product Tanker Rates to ‘New Normal’ 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 invasion of
Slide 6: 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 7: Ton-Mile Demand Increasing on Trade Rerouting and Higher Trade Volumes
Ton-Mile Demand Increasing on Trade Rerouting and Higher Trade Volumes Change in daily CPP volumes per trade route, Historical market seasonality (2013-2023, excl. 2020) Q2 2024 vs Q2 2023 M b/d %, Crude and clean product trade volumes vs annual average from Q2 to Q1 2.0 2.5 Crude CPP 2.2 1.6 1.3 2.
Slide 8: Strong Demand and Supply Balances Even if Some Drivers Were to Subside
Strong Demand and Supply Balances Even if Some Drivers Were to Subside Product tanker ton-mile demand Product tanker tonnage supply Index Index 120 120 4 118 115 6 115 110 110 1 108 7 3 106 105 105 2 1 1 100 100 100 100 100 -2 95 95 90 90 Ton-mile Sanctions Other trade Ton-mile Red Sea Other trade T
Slide 9: 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 by scheduled delivery year % No. of vessels Order book as % of the fleet Orders placed before 2024 40 Capacity above 20 years as % of the fleet 220 Orders placed in 2024
Slide 10: 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 product tankers from 2028 M dwt onwards will be lower than our Deliveries of additional ordering, old forecast Confirmed order book 20 Scrapping foreca
Slide 11: Fundamental Drivers Supporting the Strong Product Tanker Market
Fundamental Drivers Supporting the Strong Product Tanker Market Refinery closures and capacity additions in 2020-2024 (kb/d) Refinery closure risk by region 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% 2
Slide 12: Financials – Second Quarter of 2024
Financials – Second Quarter of 2024 USDm 2024 Q2 2023 Q2 Change ▪ Strong development in TCE as fleet-wide TCE rates TCE1 325.9 308.0 17.9 increased to ~ USD 42,000 driven by both changes in Unrealized gains/(losses) on derivatives 0.0 37.0 (37.0) fleet and higher freight rates across the segments. A
Slide 13: Vessel Values and Net LTV Ratio
Vessel Values and Net LTV Ratio Vessel value and Net Asset Value (NAV) USDm 3.730 3.501 3.084 3.055 3.081 3.177 3.257 ▪ Higher vessel value and NAV 2.858 2.515 2.513 reflecting fleet renewal, higher estimates from brokers, and value value the issuance of shares as part Vessel NAVNAV of consideration
Slide 14: Earnings Translate Into High Dividend
Earnings Translate Into High Dividend EPS USD 2.31 2.35 2.08 1.78 * 1.57 ▪ Earnings per share remains at very satisfactory level. ▪ Free cash flow generation net 2023Q2 2023Q3 2023Q4 2024Q1 2024Q2 of debt repayment allows us to * Adjusted for unrealized gains on derivatives. distribute significant d
Slide 15: High Cash Returns to Shareholders
High Cash Returns to Shareholders ▪ Interim dividend for the second quarter of 2024 of USD 1.80 per share corresponding to an expected total dividend payment of USD 170m to be paid to the shareholders. ▪ The distribution for the quarter is equivalent to 87% of adjusted net profit and reflects TORM’s
Slide 16: Financial Outlook 2024
Financial Outlook 2024 ▪ TORM narrows its full-year guidance for TCE earnings to USD 1.15 - 1.35bn (previous guidance USD 1.1-1.35bn) and EBITDA to USD 850 – 1,050m (previous guidance USD 800 – 1,050m). Coverage 11 August 2024 Q3 2024 Q4 2024 FY 2024 Earning days 7,859 8,234 31,539 Covered days 5,04
Slide 17: Appendix
APPENDIX 17
Slide 18: TORM at a Glance
TORM at a Glance ~90 Product tankers 9 Offices ~3,300 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). ▪ Oaktree is
Slide 19: 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 20: 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 21: 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 2021: LR2 - 3 Partially share-based LR1 - - acquisition for 8 MR MR 1 8 vessels Handy - - Total 1 11 2022: LR2 3 1 Divested remaining LR1 1 - handysize vessels from MR 2
Slide 22: 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 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’, and on the stock exchange Nasdaq New York under the ticker ‘TRMD’. Estimated shareholding as of 12 August 2024 Free flow* 53% 47% Oaktree For further compan
Slide 24: Financial Calendar and Investor Relations Contact
Financial Calendar 07 First Nine Months and NOV Third Quarter 2024 Results Investor Relations contact: Mikael Bo Larsen IR@torm.com