Torm to spend $340m on eight second-hand MRs

The $340m purchase of the eight ships will be paid for in $228m in cash via bank financing, plus the issuance of around 2.65m shares, which may lead to a change in the final purchase price depending on Torm share price movements and vessel delivery dates.

The eight new acquisitions were all built at Hyundai Mipo Dockyard in 2014-2015 and are due to be delivered in Q3 and Q4 2024; six are fitted with scrubbers.

The sold vessel is a 2006-built MR which is due to be delivered to its new owners in Q3 2024 for $23.3m.

“We are pleased to once more announce a partially share-based transaction to acquire vessels. Since 2021, TORM has utilised partially share-based transactions to expand the fleet, even before the product tankers market took off. This model highlights the strong trust the sellers have in our One TORM platform and their firm belief in market fundamentals,” says Jacob Meldgaard, Executive Director and CEO.

Along with the wider tanker market, Torm is enjoying stronger charter rates as sanctions on Russia and disruption in the Red Sea add tonne-mile demand to tanker trades. The uplift has not come without risk for the owner – one of its vessels was the target of a Houthi missile which was intercepted by the US Navy in February 2024.

Related:Torm focuses on efficiency gains, waits and sees on alternative fuels

The new acquisitions will join a fleet with a tight focus on energy efficiency and a goal to reach the IMO’s 2030 carbon intensity targets by 2025. Torm was just 0.4% off of that target at the end of 2023, it claimed.

Torm raised its 2024 full-year guidance in its first quarter earnings report to an EBITDA of $800m - $1,050m. Its second quarter results are scheduled for release on August 15, 2024.