Slide 1: Interim Results for the Third Quarter and Nine Months ended 30 September 2024
Interim Results for the Third Quarter and Nine Months ended 30 September 2024 TORM PLC OFFICE 506, 20 ST DUNSTAN'S HILL LONDON, EC3R 8HL,UNITED KINGDOM COMPANY: 09818726
Slide 2: Highlights
Highlights “Our performance this quarter remains strong, with fleet-wide freight rates slightly above last year's levels. Despite the expected impact of seasonality, we continued to deliver solid results in the third quarter,” says Jacob Meldgaard. In the third quarter of 2024, TORM’s time charter U
Slide 3: Key Figures
Key Figures Q1-Q3 Q1-Q3 Q1-Q3 Q1-Q3 USDm Q3 2024 Q3 2023 2024 2023 FY 2023 Q3 2024 Q3 2023 2024 2023 FY 2023 Income statements Key financial figures ¹⁾ Revenue 372.1 358.1 1,253.8 1,132.6 1,520.4 Gross margin 54.7% 53.2% 59.3% 58.4% 57.5% Time charter equivalent earnings EBITDA margin 51.5% 49.8% 56
Slide 4: Financial Review
Financial Review TCE USD 13.4m on derivative financial instruments regarding 47% above carrying value incl. remaining installments on The TCE rate/day increased 8% from USD 36,837 to USD freight and bunkers and an increased fleet size. purchased not delivered secondhand vessels (2023, same 39,626 in
Slide 5: Financial Review
Financial Review Cash Flow Statement Distribution Net cash flow from operating activities for the first nine TORM’s Board of Directors has today approved an interim months of 2024 was USD 706.1m (2023, same period: dividend for the third quarter of 2024 of USD 1.20 per USD 610.1m). The increase was
Slide 6: The Product Tanker Market
The Product Tanker Market Market Developments in Q3 2024 Market Outlook In the medium term (two-three years), the market is The continuing geopolitical conflict in the Middle East kept The disruption of trade flows through the Bab-el-Mandeb expected to benefit from high capacity utilization and ton-
Slide 7: Outlook for 2024
Outlook for 2024 Financial Outlook for 2024 • Potential difficulties of major business partners • One-off market-shaping events such as strikes, Disclaimer on Financial Outlook To assess our financial performance, we include the number The purpose of this Financial Outlook for 2024 is to of covered
Slide 8: Coverage 2024
Coverage 2024 Total earning and covered days in TORM as of 04 November 2024 The coverage tables below include both FFA contracts and the physical fleet. Q4 2024 FY 2024 Q1 2025 Q2 2025 FY 2025 Q4 2024 FY 2024 Q1 2025 Q2 2025 FY 2025 Total earning days Covered, % LR2 1,806 6,854 1,852 1,902 7,358 LR2
Slide 9: Earnings Data
Earnings Data Change Q3-23 USDm Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 - Q3-24 LR2 vessels 1) Available earning days 1,190 1,155 1,475 1,809 1,764 48% 2) Spot rates 33,374 44,524 59,792 55,264 40,906 23% 3) TCE per earning day 35,054 44,048 54,443 51,907 41,064 15% Operating days 1,196 1,158 1,512
Slide 10: TORM Fleet Development
TORM Fleet Development The table shows recent and expected developments in TORM Fleet Development TORM’s operating fleet. In addition to 67 owned product tankers as of 30 September 2024, TORM had 24 vessels Q4 2023 Changes Q1 2024 Changes Q2 2024 Changes Q3 2024 Changes Q4 2024 under sale-and-leaseb
Slide 11: Responsibility Statement
Responsibility Statement We Confirm to the Best of Our Knowledge Disclaimer • The condensed consolidated set of financial statements • The interim management report includes a fair review of has been prepared in accordance with IAS 34 Interim the development and performance of the Group’s The interi
Slide 12: Safe Harbor Statement as to the Future
Safe Harbor Statement as to the Future relevant territorial taxonomy regulations; the length and employees; adequacy of insurance coverage; our ability to severity of epidemics and pandemics and their impact on obtain indemnities from customers; changes in laws, Matters discussed in this release may
Slide 13: Condensed Consolidated Income Statement
Condensed Consolidated Income Statement USDm Note Q3 2024 Q3 2023 Q1-Q3 2024 Q1-Q3 2023 FY 2023 Revenue 372.1 358.1 1,253.8 1,132.6 1,520.4 Port expenses, bunkers, commissions, and other cost of goods and services sold -106.0 -113.4 -328.6 -309.6 -430.3 Operating expenses 2 -62.7 -54.2 -182.0 -161.0
Slide 14: Condensed Consolidated Statement of Comprehensive Income
Condensed Consolidated Statement of Comprehensive Income USDm Q3 2024 Q3 2023 Q1-Q3 2024 Q1-Q3 2023 FY 2023 Net profit for the period 130.7 124.3 534.1 463.4 648.0 Other comprehensive income: Items that may be reclassified to profit or loss: Exchange rate adjustment arising from translation of entit
Slide 15: Condensed Consolidated Balance Sheet
Condensed Consolidated Balance Sheet 30 September 30 September 31 December 30 September 30 September 31 December USDm Note 2024 2023 2023 USDm Note 2024 2023 2023 ASSETS EQUITY AND LIABILITIES Intangible assets Equity Goodwill 1.8 1.7 1.8 Common shares 1.0 0.8 0.9 Other intangible assets 2.2 1.7 1.8
Slide 16: Condensed Consolidated Statement of Changes in Equity
Condensed Consolidated Statement of Changes in Equity 01 January-30 September Equity attributable to Non- Common Share Treasury Hedging Translation Other Retained shareholders controlling USDm shares premium shares reserves reserves reserves profit of TORM plc interest Total Equity as of 01 January
Slide 17: Condensed Consolidated Statement of Changes in Equity
Condensed Consolidated Statement of Changes in Equity Equity attributable to Non- Common Share Treasury Hedging Translation Retained shareholders controlling USDm shares premium shares reserves reserves profit of TORM plc interest Total Equity as of 01 January 2023 0.8 167.5 -4.2 39.9 -0.5 1,297.8 1
Slide 18: Condensed Consolidated Cash Flow Statement
Condensed Consolidated Cash Flow Statement Q1-Q3 Q1-Q3 Q1-Q3 Q1-Q3 USDm 2024 2023 FY 2023 USDm 2024 2023 FY 2023 Cash flow from operating activities Cash flow from investing activities Net profit for the period 534.1 463.4 648.0 Investment in tangible fixed assets¹⁾ -436.2 -357.5 -509.7 Investment i
Slide 19: Segment Reporting – Condensed Consolidated Income Statement
Segment Reporting – Condensed Consolidated Income Statement Q3 2024 Q3 2023 Marine Inter- Marine Inter- Tanker Tanker Exhaust segment Total Exhaust segment Total segment USDm segment segment elimination segment elimination Revenue 364.5 9.3 -1.7 372.1 349.1 12.5 -3.5 358.1 Port expenses, bunkers and
Slide 20: Segment Reporting – Condensed Consolidated Income Statement
Segment Reporting – Condensed Consolidated Income Statement Q1-Q3 2024 Q1-Q3 2023 FY 2023 Marine Inter- Marine Inter- Marine Inter- Tanker Exhaust segment Tanker Exhaust segment Tanker Exhaust segment USDm segment segment elimination Total segment segment elimination Total segment segment eliminatio
Slide 21: Segment Reporting – Condensed Consolidated Balance Sheet
Segment Reporting – Condensed Consolidated Balance Sheet 30 September 2024 30 September 2023 31 December 2023 Marine Inter- Marine Inter- Marine Inter- Tanker Exhaust segment Tanker Exhaust segment Tanker Exhaust segment USDm segment segment elimination Total segment segment elimination Total segmen
Slide 22: Segment Reporting – Condensed Consolidated Balance Sheet
Segment Reporting – Condensed Consolidated Balance Sheet 30 September 2024 30 September 2023 31 December 2023 Marine Inter- Marine Inter- Marine Inter- Tanker Exhaust segment Tanker Exhaust segment Tanker Exhaust segment USDm segment segment elimination Total segment segment elimination Total segmen
Slide 23: Note 1 - Accounting Policies and Going Concern
NOTE 1 - ACCOUNTING POLICIES AND GOING CONCERN NOTE 1 - continued General Information Going Concern The information for the year ended 31 December 2023 does not constitute statutory accounts as defined TORM monitors its funding position throughout the year to ensure that it has access to sufficient
Slide 24: Notes - Staff Costs and Vessel and Capitalized Dry-docking
NOTE 2 - STAFF COSTS NOTE 3 - VESSEL AND CAPITALIZED DRY-DOCKING Staff costs included in operating expenses relate to the 107 seafarers employed under Danish contracts (30 September 2023: 105, 31 December 2023: 105). 30 September 30 September 31 December USDm 2024 2023 2023 The average number of emp
Slide 25: Notes - Impairment, Prepayments on Vessels, Derivative Financial Instruments
NOTE 3 - continued NOTE 6 - DERIVATIVE FINANCIAL INSTRUMENTS IMPAIRMENT ASSESSMENT 30 September 30 September 31 December For determination of the vessel values, TORM has carried out an impairment indicator assessment and has found no indication of impairment, and therefore, TORM does not find any ne
Slide 26: Notes - Earnings per Share and Dividend per Share; Provisions
NOTE 7 - EARNINGS PER SHARE AND DIVIDEND PER SHARE NOTE 8 - PROVISIONS In 2020, TORM was involved in cargo claims relating to a customer having granted indemnities for Q3 Q3 Q1-Q3 Q1-Q3 FY discharge of cargoes, and not being able to honor those obligations. The cases involved irregular activities 20
Slide 27: Notes - Lease Income and Subsequent Events
NOTE 10 - continued As of 30 September 2024, TORM has contractual rights to receive future payments as lessor of vessels on time charter. 30 September 30 September 31 December USDm 2024 2023 2023 Charter hire income for vessels - as lessor Received within one year 88.6 30.1 37.8 Received between one
Slide 28: Glossary
Glossary Key Financial Figures TCE per day = TCE excluding unrealized gains/losses on derivatives Available earning days Gross profit % = Gross profit Revenue EBITDA % = EBITDA Revenue Operating profit % = Operating profit (EBIT) Revenue Return on Equity (RoE) % = Net profit for the year Average equ
Slide 29: Glossary
Glossary Alternative Performance Measures Group Throughout the interim report, several alternative performance measures (APMs) are used. Gross profit: TORM defines gross profit, a performance measure, as revenues less port expenses, bunkers The APMs used are the same as in the Annual Report 2023 and
Slide 30: Glossary
Glossary Alternative Performance Measures Group Adjusted Return on Invested Capital (Adjusted ROIC): TORM defines adjusted ROIC as earnings before EBITDA: TORM defines EBITDA as earnings before financial income and expenses, depreciation, interest and tax (EBIT) less tax and non-recurrent items, div
Slide 31: Glossary
Glossary Alternative Performance Measures Group Invested capital: TORM defines invested capital as the sum of intangible assets, tangible fixed assets, Net interest-bearing debt: Net interest-bearing debt is defined as mortgage debt and bank loans (current investments in joint ventures, deferred tax
Slide 32: Glossary
Glossary Alternative Performance Measures Group Liquidity: TORM defines liquidity as available cash, comprising cash and cash equivalents, including Net Asset Value per share (NAV/share): TORM believes that the NAV/share is a relevant measure which restricted cash, as well as undrawn and committed c
Slide 33: Glossary
Glossary Alternative Performance Measures Tanker segment Throughout the interim report, several alternative performance measures (APMs) are used. The APMs Net Loan-to-value (LTV): TORM defines Loan-to-value (LTV) ratio as vessel values divided by net used are the same as in the Annual Report 2023 an