The most significant turnaround came from the tanker division, which returned a $2m loss for the quarter, down from a $42m loss in the same three months of 2012. US exports to West Africa and South America improved ton-mile demand in the West, boosting freight rates.
"Torm was well positioned to take advantage of the positive sentiments in the product tanker market. Torm's operational platform improved further in terms of quality, cost-efficiency and customer reach. EBITDA for the first half of 2013 of $61m was an improvement of $91m compared to last year," said ceo Jacob Meldgaard.
LR1 spot rates were $14,252 per day, 27% up year-on-year, MRs were up 48% to $17,060 per day and handysize spot rates dropped 15% to $10,328..
Torm's bulk division lost $10m, strengthened by the South American grain season and improving on 2012's $13m loss. Panamax time charter equivalent (TCE) earnings $8,156 per day, 26% below the same quarter of 2012. The realised TCE earnings for handymaxes during the second quarter were $9,881 per day, 99% higher than last year. The company's forward plan for bulk is to limit operations to its core fleet of around 10 vessels.
The company has revised its forecast for 2013 to a loss of $100m-$120m from a forecast three months ago of a $100m-$130m.
Torm's owned fleet consists of 65 product tankers and two bulkers, with a total fleet of 121 ships including pools and managed vessels.
At the end of the quarter, Torm had covered 11% of its tanker division's earning days for the second half at $14,624 per day and 34% of the bulk division's earning days $12,539 per day.