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Torm improves in 2013, still firmly in the red

Torm improves in 2013, still firmly in the red
Financially strapped Danish-shipowner Torm has reported a $162m loss for 2013, although this improves on 2012's $581m loss.

The company's operating loss for 2013 stood at $91m, with a further $76m loss on financial items including the $60m burden of impairment charges and restructuring effects.

A rally in tanker rates, MR spot rates rose 30% from 2012's average of $12,178 per day to $15,914 per day in 2013, saw the tanker segments EBITDA rise from -$20m for 2012 to $126m last year.

Despite a strong seasonal capesize rally and subsequent rises in panamax rates, panamax TCE earnings were down from $10,248 in 2012 to an average of $8,019 for 2013. EBITDA for dry bulk slipped year on year from -$25m to -$30m in 2013. Torm has restricted its dry bulk activities to a core of 10 vessels, for which it will seek time charter employment.

During the year, creditor banks forced the sale of nine vessels as they exercised options attached to the company's restructuring. All of the vessels were bought by Oaktree Capital, the first five MRs in April 2013 followed by four more MRs in November.

Torm's fleet has a book value of $1.6bn and the company currently has interest-bearing debt totalling $1.7bn.

The company has forecast a $70-$100m loss for 2014.