TIDMTRMD TIDMA 
 
   "Having experienced a seasonally softer freight rate environment in the 
third quarter of 2019, the product tanker market has strengthened 
significantly going into the fourth quarter. As the demand and supply 
balance tightens towards the upcoming IMO 2020, individual events have 
caused spikes in product tanker freight rates to levels last seen in 
2008," says Executive Director Jacob Meldgaard and adds: "For the fourth 
quarter, our bookings as of 8 November 2019 were at USD/day 19,531 
reflecting the strong market we are currently operating in." 
 
 
   -- EBITDA for the third quarter of 2019 was USD 32.0m (2018, same period: 
      USD 14.7m). The loss before tax amounted to USD 8.5m (2018, same period: 
      loss of USD 24.5m), and loss per share (EPS) was 12 cents (2018, same 
      period: loss per share of 34 cents). Cash flow from operating activities 
      was positive at USD 32.9m in the third quarter of 2019 (2018, same 
      period: USD 18.3m), and Return on Invested Capital (RoIC) was 0.4% (2018, 
      same period: -4.3%). 
 
   -- In the third quarter of 2019, TORM achieved TCE rates of USD/day 13,392 
      (2018, same period: USD/day 10,598). The product tanker freight rates 
      softened in the third quarter of 2019 but rebounded strongly at the start 
      of the fourth quarter following a significant increase in crude tanker 
      rates due to attacks on Saudi Arabian oil facilities. This increase 
      accelerated dramatically after the US imposed sanctions on two 
      subsidiaries of China's COSCO Shipping. In general, product tanker 
      freight rates were stronger in the eastern than in the western hemisphere 
      in the third quarter of 2019. 
 
   -- TORM expects to install a total of 44 scrubbers and has since the last 
      quarter committed to an additional ten scrubber installations. The new 
      installations support our balanced approach to the new sulfur regulation, 
      according to which approximately half of TORM's fleet will operate with 
      scrubbers. The recently decided additional scrubber installations will be 
      conducted during the first and the second quarter of 2020. As of 12 
      November 2019, TORM has conducted 16 scrubber installations. Of the 
      remaining 28 installations, seven are expected to be conducted in 2019, 
      12 in the first quarter of 2020 and nine in the second quarter of 2020. 
      As seen across the entire industry, TORM has also experienced some delays 
      in recent scrubber installations. TORM has decided to postpone some 
      installations to the first and the second quarter of 2020 to reduce the 
      risk of further delays, and also to utilize the current strong market. 
 
   For the non-scrubber vessels, that will be using compliant fuels with 
0.5% sulfur content from 1 January 2020, customized schedules have been 
developed, and the cleaning of the bunker tanks have been initiated 
during the third quarter of 2019. The first volumes of compliant fuels 
have been delivered and tested onboard the vessels, and all non-scrubber 
vessels are in the process of being prepared for using the new compliant 
fuels during the fourth quarter of 2019. 
 
 
 
 
   -- During the third quarter of 2019, TORM took delivery of four second-hand 
      MR vessels that were purchased in the second quarter of 2019 and the two 
      MR newbuildings TORM Solution and TORM Strong. After the quarter ended on 
      30 September 2019, TORM took delivery of an additional MR newbuilding, 
      TORM Sublime. During the third quarter of 2019, TORM also sold and 
      delivered the MR vessel TORM San Jacinto (2002-built) and the Handysize 
      vessel TORM Saone (2004-built) for a total consideration of USD 16m. In 
      connection with the sales, USD 9m of debt was repaid. After the quarter 
      ended on 30 September 2019, TORM has sold two additional vessels, the 
      Handysize vessel TORM Garonne (2004-built) and the MR vessel TORM Rosetta 
      (2003-built), for a total consideration of USD 19m. TORM will repay USD 
      9m of debt in connection with the vessel sales and expects to deliver the 
      vessels to the new owners during the fourth quarter of 2019 and the first 
      quarter of 2020. 
 
   -- During the third quarter of 2019, TORM executed sale and leaseback 
      transactions for eight vessels, including the recently acquired four 
      second-hand MR vessels and four existing MR vessels. Below is an overview 
      of the sale and leaseback transactions executed during the third quarter: 
 
          -- The four recently acquired 2011-built MR vessels providing total 
             proceeds of USD 66m. The transaction was executed with a Chinese 
             counterparty and includes a purchase obligation in 2025. 
 
          -- The MR vessels TORM Torino and TORM Titan (both 2016-built) 
             providing total proceeds of USD 52m. In connection with the 
             transactions, USD 18m of debt was repaid. The transactions were 
             executed with two separate Japanese counterparties and include a 
             purchase obligation in 2024 for TORM Torino and in 2026 for TORM 
             Titan. 
 
          -- The MR vessels TORM Alice and TORM Alexandra (both 2010-built) 
             providing total proceeds of USD 35m. In connection with the 
             transaction, USD 21m of debt was repaid. The transaction was 
             executed with a Japanese counterparty and includes purchase 
             options in 2024 and 2026 for both vessels. 
 
   In total, TORM has executed sale and leaseback transactions for eight 
vessels during the third quarter of 2019, all with terms supporting 
TORM's solid capital structure. 
 
 
 
 
   -- As of 30 September 2019, TORM's available liquidity was USD 337.0m 
      consisting of USD 120.8m in cash and cash equivalents and USD 216.2m in 
      undrawn credit facilities. As of 30 September 2019, net interest-bearing 
      debt amounted to USD 732.5m and TORM's net loan-to-value (LTV) ratio was 
      50%. Cash and cash equivalents include USD 14.5m in restricted cash, 
      primarily related to security placed as collateral for financial 
      instruments. 
 
   -- Based on broker valuations, TORM's fleet including newbuildings had a 
      market value of USD 1,720.4m as of 30 September 2019. Compared to broker 
      valuations as of 30 June 2019, the market value of the fleet increased 
      slightly by USD 2m when adjusted for sold and purchased vessels. The book 
      value of TORM's fleet was USD 1,586.4m as of 30 September 2019 excluding 
      outstanding installments on newbuildings of USD 137.5m. The outstanding 
      installments include payments for scrubbers related to these vessels. 
      TORM also has CAPEX commitments of USD 31.7m for retrofit scrubber 
      installations. In addition, USD 12m relating to six additional scrubbers 
      was committed after the quarter ended. As of 30 September 2019, TORM's 
      order book stood at five newbuildings consisting of two LR1 and three MR 
      vessels. The newbuildings are expected to be delivered in the fourth 
      quarter of 2019 and the first quarter of 2020. 
 
   -- Based on broker valuations as of 30 September 2019, TORM's Net Asset 
      Value (NAV) excluding charter commitments was estimated at USD 886.9m 
      corresponding to a NAV/share of USD 12.0 or DKK 82.2. TORM's book equity 
      amounted to USD 851.8m as of 30 September 2019 corresponding to a book 
      equity/share of USD 11.5 or DKK 79.0. After the third quarter ended, TORM 
      has increased its share capital by 42,533 A-shares (corresponding to a 
      nominal value of USD 425.33) as a result of the exercise of a 
      corresponding number of Restricted Share Units. 
 
   -- As of 30 September 2019, 21% of the remaining total earning days in 2019 
      were covered at an average rate of USD/day 15,655. As of 8 November 2019, 
      the coverage for the fourth quarter of 2019 was 63% at USD/day 19,531. 
      For the individual segments, the coverage was 69% at USD/day 26,267 for 
      LR2, 59% at USD/day 20,736 for LR1, 61% at USD/day 18,095 for MR and 75% 
      at USD/day 14,990 for Handy. 
 
 
 
 
   CONFERENCE CALL 
 
   TORM will today be hosting a conference call for investors and financial 
analysts at 9:00 am Eastern Time / 3:00 pm Central European Time. If you 
wish to listen to the call, please dial +45 3272 8042 (+1 (631) 510 7495 
for USA connections) at least 10 minutes prior to the start of the call 
to ensure connection and use 5880965 as conference ID. The presentation 
can be downloaded from https://investors.torm.com/. 
 
 
 
 
CONTACT                                     TORM plc 
Jacob Meldgaard, Executive Director, tel.:  Birchin Court, 20 Birchin Lane 
 +45 3917 9200 
Morten Agdrup, IR, tel.: +45 3917 9249      London, EC3V 9DU, United Kingdom 
                                            Tel.: +44 203 713 4560 
                                            www.torm.com 
 
   ABOUT TORM 
 
   TORM is one of the world's leading carriers of refined oil products. The 
Company operates a fleet of approximately 80 modern vessels with a 
strong commitment to safety, environmental responsibility and customer 
service. TORM was founded in 1889. The Company conducts business 
worldwide. TORM's shares are listed on NASDAQ Copenhagen and NASDAQ New 
York (tickers: TRMD A and TRMD). For further information, please visit 
www.torm.com. 
 
   SAFE HARBOR STATEMENTS AS TO THE FUTURE 
 
   Matters discussed in this release may constitute forward-looking 
statements. Forward-looking statements reflect our current views with 
respect to future events and financial performance and may include 
statements concerning plans, objectives, goals, strategies, future 
events or performance, and underlying assumptions and statements other 
than statements of historical facts. The words "believe," "anticipate," 
"intend," "estimate," "forecast," "project," "plan," "potential," "may," 
"should," "expect," "pending" and similar expressions generally identify 

forward-looking statements. 
 
   The forward-looking statements in this release are based upon various 
assumptions, many of which are based, in turn, upon further assumptions, 
including without limitation, management's examination of historical 
operating trends, data contained in our records and other data available 
from third parties. Although the Company believes that these assumptions 
were reasonable when made, because these assumptions are inherently 
subject to significant uncertainties and contingencies that are 
difficult or impossible to predict and are beyond our control, the 
Company cannot guarantee that it will achieve or accomplish these 
expectations, beliefs or projections. 
 
   Important factors that, in our view, could cause actual results to 
differ materially from those discussed in the forward-looking statements 
include the strength of the world economy and currencies, changes in 
charter hire rates and vessel values, changes in demand for "ton miles" 
of oil carried by oil tankers, the effect of changes in OPEC's petroleum 
production levels and worldwide oil consumption and storage, changes in 
demand that may affect attitudes of time charterers to scheduled and 
unscheduled dry-docking, changes in TORM's operating expenses, including 
bunker prices, dry-docking and insurance costs, changes in the 
regulation of shipping operations, including requirements for double 
hull tankers or actions taken by regulatory authorities, potential 
liability from pending or future litigation, domestic and international 
political conditions, potential disruption of shipping routes due to 
accidents, political events or acts by terrorists. 
 
   In light of these risks and uncertainties, you should not place undue 
reliance on forward-looking statements contained in this release because 
they are statements about events that are not certain to occur as 
described or at all. These forward-looking statements are not guarantees 
of our future performance, and actual results and future developments 
may vary materially from those projected in the forward-looking 
statements. 
 
   Except to the extent required by applicable law or regulation, the 
Company undertakes no obligation to release publicly any revisions to 
these forward-looking statements to reflect events or circumstances 
after the date of this release or to reflect the occurrence of 
unanticipated events. 
 
 
 
   Attachments 
 
 
   -- 18-2019 - TORM plc Q3 2019 - US 
      https://ml-eu.globenewswire.com/Resource/Download/4fe149d9-50ca-4f37-9366-0b2cbaaa69f6 
 
 
   -- Q3 Report 2019 
      https://ml-eu.globenewswire.com/Resource/Download/3ea3a60b-938b-4658-9c5f-93e8c7d8f3a0 
 
 
 
 
 
 
 

(END) Dow Jones Newswires

November 12, 2019 02:51 ET (07:51 GMT)