Torm narrowly misses black ink in Q2

The company's fleet of 72 owned, chartered and commercial operated tankers returned a gross profit of $56m, more than doubling the $26m earned in the same period last year.

For MRs, the main component of the Torm fleet, spot rates were $22,746 per day, up 73% compared to the same period last year. LR2 spot rates were up 93% to $28,217 per day, LR1s gained 45% to $24,974 per day and handysizes earned an average of $19,751 per day, a 32% increase.

High refinery margins continued to support demand, as well as strong gasoline exports to the US East Coast owing to high demand and tight supply of Jones Act tonnage and pipeline restrictions. Dirty product rates were strong enough to lead a "significant number" of LR2s to switch to dirty cargoes.

Torm's dry bulk segment consists of three panamaxes, two owned and one chartered-in, which continued to suffer low rates as the market struggled with oversupply of tonnage. Earnings were down 42% compared to Q2 2014 at $6,480. The dry bulk division returned a gross loss of $1m.

In its second quarter earnings release the company revised the ranges of its EBITDA and profit forecasts for 2015 upwards by $20m and $15m respectively, predicting a $190m - $230m EBITDA and pre-tax profit of $115m - $155m.

Outside of the period, Torm completed its restructuring with Oaktree Capital Management. The company has called for an extraordinary general meeting on 25 August to process certain parts of the restructuring agreement, including electing new board members, a 1,500:1 stock consolidation and removal of certain board authorisations.