TORM plc 6-K, filed Aug 17, 2023

TORM plc (TRMD)

6-K 2023-08-17 For: 2023-06-30

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About this 6-K

TORM plc filed this 6-K on August 17, 2023.

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	TORM PLC

Dated: August 17, 2023

	By:	/s/ Jacob Meldgaard
		Jacob Meldgaard
		Executive Director and Principal Executive Officer


USDm	Q2 2023	Q2 2022	Q1-Q2 2023	Q1-Q2 2022	FY 2022
Income statements
Revenue	384.3	338.5	774.5	547.9	1,443.4
Time charter equivalent earnings (TCE) ¹⁾ ⁵⁾	308.0	209.6	572.9	333.0	981.5
Gross profit ¹⁾	255.4	158.5	471.5	232.6	781.8
EBITDA ¹⁾	236.8	153.4	435.4	213.8	743.0
Adjusted EBITDA ¹⁾	199.8	162.9	414.2	224.9	743.6
Operating profit/(loss) (EBIT)	199.8	118.7	363.3	141.3	601.4
Financial items	-15.4	-11.7	-23.8	-23.6	-44.7
Profit/(loss) before tax	184.4	107.0	339.5	117.7	556.7
Net profit/(loss) for the year/period	185.4	106.6	339.1	117.0	562.6
Net profit/(loss) ex. non-recurrent items¹⁾	184.3	99.7	338.0	112.7	548.4
Unrealized gain/(loss) on financial instruments related to freight and bunker	37.0	-9.5	21.2	-11.1	-0.6
Balance sheet and cash flow
Non-current assets	2,172.4	1,857.3	2,172.4	1,857.3	1,874.5
Total assets	2,860.6	2,421.1	2,860.6	2,421.1	2,614.2
Equity	1,566.3	1,214.7	1,566.3	1,214.7	1,503.7
Total liabilities	1,294.3	1,206.4	1,294.3	1,206.4	1,110.5
Invested capital ¹⁾	2,446.4	2,096.7	2,446.4	2,096.7	2,142.3
Net interest-bearing debt ¹⁾	893.6	894.0	893.6	894.0	649.6
Net Asset Value (NAV) ²⁾	2,515.1	1,510.8	2,515.1	1,510.8	2,329.8
Cash and cash equivalents incl. restricted cash	269.0	157.7	269.0	157.7	323.8
Investment in tangible fixed assets	118.5	12.7	333.6	59.6	119.3
Free cash flow	89.8	96.6	62.9	74.8	513.2

¹⁾ For definition of the calculated key figures, please refer to the glossary on pages 31-36.
²⁾ Based on broker valuations, excluding charter commitments.


	Q2 2023	Q2 2022	Q1-Q2 2023	Q1-Q2 2022	FY 2022
Key financial figures ¹⁾
Gross margin	66.5%	46.8%	60.9%	42.5%	54.2%
EBITDA margin	61.6%	45.3%	56.2%	39.0%	51.5%
Adjusted EBITDA margin	52.0%	48.1%	53.5%	41.0%	51.5%
Operating profit/(loss) (EBIT) margin	52.0%	35.1%	46.9%	25.8%	41.6%
Return on Equity (RoE)	46.0%	36.9%	44.2%	20.6%	44.0%
Return on Invested Capital (RoIC)	33.9%	22.7%	31.6%	13.7%	29.2%
Adjusted RoIC	33.4%	21.9%	31.1%	13.2%	28.1%
Equity ratio ³⁾	54.8%	50.2%	54.8%	50.2%	57.5%
TCE per day (USD) ⁵⁾	36,360	29,622	38,903	23,152	34,154
OPEX per day (USD) ⁵⁾	7,053	6,809	7,170	6,625	6,825
Net Loan-to-value (LTV) ratio ³⁾ ⁵⁾	29.1%	42.3%	29.1%	42.3%	24.8%
Share-related key figures ¹⁾
Basic earnings/(loss) per share (USD)	2.23	1.31	4.10	1.44	6.92
Diluted earnings/(loss) per share (USD)	2.14	1.31	3.95	1.44	6.80
Declared dividend per share (USD)	1.50	0.58	2.96	0.58	4.63
Declared dividend (USDm)	126.6	47.0	247.7	47.0	378.7
Dividend paid per share (USD)	4.05	-	4.05	-	2.04
Net Asset Value per share (NAV/share) (USD) ³⁾	29.8	18.5	29.8	18.5	28.5
Share price in DKK ³⁾ ⁶⁾	164.2	96.1	164.2	96.1	198.4
Share price in USD ³⁾ ⁷⁾	24.2	13.6	24.2	13.6	29.2
Number of shares ³⁾ ⁴⁾	84.4	81.5	84.4	81.5	81.8
No. of shares, weighted average (million) ⁴⁾	83.5	81.2	82.7	81.0	81.3

³⁾ End of period
⁴⁾ Excluding treasury shares
⁵⁾ For Tanker segment
⁶⁾ Source: Nasdaq OMX Nordic
⁷⁾ Source: Nasdaq US

	Q3 2023	Q4 2023	FY 2023	FY 2024	FY 2025
Total earning days
LR2	1,191	1,189	4,526	4,702	4,641
LR1	1,265	1,217	4,489	4,968	4,878
MR	5,230	5,184	20,444	21,213	20,864
Total	7,685	7,591	29,459	30,882	30,383

Covered days
LR2	833	4	2,991	0	0
LR1	1,114	456	3,579	65	0
MR	3,722	774	14,522	521	0
Total	5,669	1,234	21,092	586	-

	Q3 2023	Q4 2023	FY 2023	FY 2024	FY 2025
Covered, %
LR2	70%	0.3%	66%	0%	0%
LR1	88%	38%	80%	1%	0%
MR	71%	15%	71%	3%	0%
Total	74%	16%	72%	2%	0%

Coverage rates, USD/day
LR2	32,579	47,345	50,090	0	0
LR1	29,626	45,186	36,342	46,108	0
MR	30,349	39,609	33,785	40,503	0
Total	30,534	41,693	36,531	41,125	-

USDm	Q2 2022	Q3 2022	Q4 2022	Q1 2023	Q2 2023	Change Q2 22 – Q2 23
LR2 vessels
Available earning days¹⁾	1,306	1,184	1,096	1,071	1,074	-18%
Spot rates ²^⁾	39,027	52,595	64,485	65,245	48,775	25%
TCE per earning day ³^⁾	30,741	55,532	58,889	65,551	47,918	56%
Calendar days	1,331	1,220	1,196	1,170	1,183	-11%
Operating expenses per calendar day	6,961	7,196	7,469	7,637	7,490	8%
LR1 vessels
Available earning days¹⁾	691	685	621	758	1,249	81%
Spot rates ²^⁾	36,535	51,089	50,287	44,141	35,060	-4%
TCE per earning day ³^⁾	33,269	51,102	48,067	42,047	36,674	10%
Calendar days	729	736	736	810	1,277	75%
Operating expenses per calendar day	6,588	6,640	7,236	6,709	7,534	14%
MR vessels
Available earning days¹⁾	5,309	5,161	5,138	4,903	5,127	-3%
Spot rates ²^⁾	34,115	43,284	47,876	37,058	33,336	-2%
TCE per earning day ³^⁾	29,174	40,968	45,029	36,461	33,862	16%
Calendar days	5,347	5,315	5,244	5,130	5,306	-1%
Operating expenses per calendar day	6,808	7,055	6,901	7,314	6,839	0%
Handy vessels
Available earning days¹⁾	92	6	-	-	-	-100%
Spot rates ²^⁾	12,602	12,505	-	-	-	-100%
TCE per earning day ³^⁾	12,196	6,397	-	-	-	-100%
Calendar days	103	7	-	-	-	-100%
Operating expenses per calendar day	6,455	11,462	-	-	-	-100%
Tanker segment
Available earning days¹⁾	7,398	7,035	6,855	6,732	7,451	1%
Spot rates ²^⁾	34,844	45,646	50,818	42,476	35,875	3%
TCE per earning day ³^⁾	29,622	44,376	47,520	41,717	36,360	23%
Calendar days	7,510	7,278	7,176	7,110	7,766	3%
Operating expenses per calendar day	6,809	7,041	7,030	7,299	7,053	4%
¹⁾Total available earning days = Total calendar days less off-hire days ²^⁾ Spot rates = Time Charter Equivalent Earnings for all charters with less than six months' duration.
³⁾ TCE = Time Charter Equivalent Earnings. Please refer to the glossary on pages 31-36 for definitions.

The table shows TORM’s operating fleet. In addition to 57 owned product tankers, TORM had 30 vessels under sale-and-leaseback agreements with options to buy back the vessels as of 30 June 2023 (financially reported as owned vessels in accordance with our accounting policies). During Q2 2023, TORM took delivery of two LR1 vessels including TORM Evelyn and TORM Evolve and three MR vessels including TORM Beatrice, TORM Birgitte and TORM Belis. In addition, TORM sold one LR1 vessel (TORM Sara) that was delivered to its new owner in Q2 2023. During Q2 2023, TORM completed our refinancing transaction, as announced earlier in Q1 2023. As a result of the transaction, five leased MR vessels (TORM Titan, TORM Australia, TORM New Zealand, TORM Singapore and TORM Malaysia) will be refinanced to debt financing in August and September. Further, the MR vessel TORM Torino that was previously leased was refinanced with bank financing early August 2023, In the first part of July TORM sold one MR vessel (TORM Freya) which is expected to be delivered to its new owner in August 2023. The vessel was held for sale at the end of Q2 2023. TORM expects to operate a total of 86 vessels by the end of Q3 2023.	TORM fleet development
		Q1 2023	Changes	Q2 2023	Changes	Q3 2023	Changes	FY 2023
	Owned vessels
	LR2	7	-	7		7	-	7
	LR1	8	-1	7	-	7	-	7
	MR	40	3	43	5	48	-	48
	Total	55	2	57	5	62	-	62

	Leaseback vessels
	LR2	6	-	6	-	6	-	6
	LR1	5	2	7	-	7	-	7
	MR	17	-	17	-6	11	-	11
	Total	28	2	30	-6	24	-	24

	Total fleet	83	4	87	-1	86	-	86

USDm	Note	Q2 2023	Q2 2022	Q1-Q2 2023	Q1-Q2 2022	FY 2022
Revenue		384.3	338.5	774.5	547.9	1,443.4
Port expenses, bunkers, commissions, and other cost of goods and services sold		-74.1	-128.9	-196.3	-214.9	-459.5
Operating expenses	1	-54.8	-51.1	-106.7	-100.4	-202.1
Profit from sale of vessels	2	3.5	0.8	3.5	0.8	10.2
Administrative expenses	1, 2	-21.9	-12.5	-39.5	-25.9	-55.0
Other operating income and expenses		-0.2	6.7	-0.1	6.4	5.8
Share of profit/(loss) from joint ventures		-	-0.1	-	-0.1	0.2
Operating profit before depreciation, amortization and impairment losses (EBITDA)		236.8	153.4	435.4	213.8	743.0

Impairment losses on tangible assets	2	-	-0.2	-	-2.8	-2.6
Depreciation and amortization	2	-37.0	-34.5	-72.1	-69.7	-139.0
Operating profit (EBIT)		199.8	118.7	363.3	141.3	601.4

Financial income		2.6	0.3	6.7	0.3	4.1
Financial expenses		-18.0	-12.0	-30.5	-23.9	-48.8
Profit before tax		184.4	107.0	339.5	117.7	556.7

Tax		1.0	-0.4	-0.4	-0.7	5.9
Net profit for the period		185.4	106.6	339.1	117.0	562.6

Net profit for the period attributable to:
TORM plc shareholders		185.8	106.6	339.4	117.0	562.8
Non-controlling interest		-0.4	-	-0.3	-	-0.2
Net profit for the period		185.4	106.6	339.1	117.0	562.6

Earnings per share
Basic earnings per share (USD)	6	2.23	1.31	4.10	1.44	6.92
Diluted earnings per share (USD)	6	2.14	1.31	3.95	1.44	6.80

		30 June	30 June	31 December
USDm	Note	2023	2022	2022
ASSETS
Non-current Assets
Intangible assets
Goodwill		1.8	-	1.8
Other intangible assets		1.8	-	2.0
Total intangible assets		3.6	-	3.8
Tangible fixed assets
Land and buildings		5.3	3.7	3.8
Vessels and capitalized dry-docking	2	2,149.4	1,836.8	1,855.9
Prepayments on vessels	3	4.4	4.3	-
Other plant and operating equipment		4.8	5.6	5.6
Total tangible fixed assets		2,163.9	1,850.4	1,865.3
Financial assets
Investments in joint ventures		-	1.3	0.1
Loan receivables		4.6	4.6	4.6
Deferred tax asset		0.3	0.6	0.5
Other investments		-	0.4	0.2
Total financial assets		4.9	6.9	5.4
Total non-current assets		2,172.4	1,857.3	1,874.5
Current Assets
Inventories		66.9	78.3	72.0
Trade receivables		226.3	171.9	259.5
Other receivables		102.8	77.3	74.0
Prepayments		12.4	9.4	10.4
Cash and cash equivalents incl. restricted cash		269.0	157.7	323.8
Current assets, excl. assets held-for-sale		677.4	494.6	739.7
Assets held-for-sale	2	10.8	69.2	-
Total current assets		688.2	563.8	739.7
Total Assets		2,860.6	2,421.1	2,614.2

USDm	Common shares	Share premium	Treasury shares	Hedging reserves	Translation reserves	Retained profit	Equity attributable to shareholders of TORM plc	Non-controlling interest	Total
Equity as of 01 January 2023	0.8	167.5	-4.2	39.9	-0.5	1,297.8	1,501.3	2.4	1,503.7
Comprehensive income/loss for the period
Net profit for the period	-	-	-	-	-	339.4	339.4	-0.3	339.1
Other comprehensive income for the period	-	-	-	-3.9	-0.1	-	-4.0	-0.2	-4.2
Tax on other comprehensive income	-	-	-	0.9	-	-	0.9	-	0.9
Total comprehensive income/(loss) for the period	-	-	-	-3.0	-0.1	339.4	336.3	-0.5	335.8
Capital increase ¹⁾	-	54.7	-	-	-	-	54.7	-	54.7
Transaction costs of capital increase	-	-0.1	-	-	-	-	-0.1		-0.1
Share-based compensation	-	-	-	-	-	8.8	8.8	-	8.8
Paid dividend	-	-	-	-	-	-336.6	-336.6	-	-336.6
Total changes in equity for the period	-	54.6	-	-3.0	-0.1	11.6	63.1	-0.5	62.6
Equity as of 30 June 2023	0.8	222.1	-4.2	36.9	-0.6	1,309.4	1,564.4	1.9	1,566.3
¹⁾ During the year, the share capital was increased amounting to USD 6.2m as a result of the exercise of Restricted Share Units and 48.5m from a non-cash issue in relation to purchase of three vessels.

	30 June 2023				30 June 2022				31 December 2022
USDm	Tanker segment	Marine Exhaust segment	Inter- segment elimination	Total	Tanker segment	Marine Exhaust segment	Inter- segment elimination	Total	Tanker segment	Marine Exhaust segment	Inter- segment elimination	Total
ASSETS
Non-current Assets
Intangible assets
Goodwill	-	1.8	-	1.8	-	-	-	-	-	1.8	-	1.8
Other intangible assets	0.7	1.1	-	1.8	-	-	-	-	0.7	1.3	-	2.0
Total intangible assets	0.7	2.9	-	3.6	-	-	-	-	0.7	3.1	-	3.8
Tangible fixed assets
Land and buildings	4.5	0.8	-	5.3	3.7	-	-	3.7	2.8	1.0	-	3.8
Vessels and capitalized dry-docking	2,160.1	-	-10.7	2,149.4	1,836.8	-	-	1,836.8	1,863.4	-	-7.5	1,855.9
Prepayments on vessels	-	4.9	-0.5	4.4	4.3	-	-	4.3	-	-	-	-
Other plant and operating equipment	3.5	1.3	-	4.8	5.6	-	-	5.6	4.1	1.5	-	5.6
Total tangible fixed assets	2,168.1	7.0	-11.2	2,163.9	1,850.4	-	-	1,850.4	1,870.3	2.5	-7.5	1,865.3
Financial assets
Investments in joint ventures	-	-	-	-	1.3	-	-	1.3	0.1	-	-	0.1
Loan receivables	4.6	-	-	4.6	4.6	-	-	4.6	4.6	-	-	4.6
Deferred tax asset	0.3	-	-	0.3	0.6	-	-	0.6	0.5	-	-	0.5
Other investments	-	-	-	-	0.4	-	-	0.4	0.2	-	-	0.2
Total financial assets	4.9	-	-	4.9	6.9	-	-	6.9	5.4	-	-	5.4
Total non-current assets	2,173.7	9.9	-11.2	2,172.4	1,857.3	-	-	1,857.3	1,876.4	5.6	-7.5	1,874.5
Current Assets
Inventories	61.1	5.8	-	66.9	78.3	-	-	78.3	61.1	11.0	-0.1	72.0
Trade receivables	221.3	5.2	-0.2	226.3	171.9	-	-	171.9	255.7	4.2	-0.4	259.5
Other receivables	100.6	2.2	-	102.8	77.3	-	-	77.3	72.7	1.3	-	74.0
Prepayments	10.1	2.3	-	12.4	9.4	-	-	9.4	9.7	0.7	-	10.4
Cash and cash equivalents incl. restricted cash	264.9	4.1	-	269.0	157.7	-	-	157.7	321.4	2.4	-	323.8
Current assets, excl. assets held-for-sale	658.0	19.6	-0.2	677.4	494.6	-	-	494.6	720.6	19.6	-0.5	739.7
Assets held-for-sale	10.8	-	-	10.8	69.2	-	-	69.2	-	-	-	-
Total current assets	668.8	19.6	-0.2	688.2	563.8	-	-	563.8	720.6	19.6	-0.5	739.7
Total Assets	2,842.5	29.5	-11.4	2,860.6	2,421.1	-	-	2,421.1	2,597.0	25.2	-8.0	2,614.2

TCE per day	=	TCE excluding unrealized gains/losses on derivatives Available earning days

Gross profit %	=	Gross Profit Revenue

EBITDA %	=	EBITDA Revenue

Operating profit/(loss) %	=	Operating profit/(loss) (EBIT) Revenue

Return on Equity (RoE) %	=	Net profit/(loss) for the year Average equity

Return on Invested Capital (RoiC) %	=	Operating profit/(loss) less tax Average invested capital

Equity ratio	=	Equity Total assets

Earnings per share, EPS	=	Net profit/(loss) for the year Average number of shares

Diluted earnings/(loss) per share, EPS (USD)	=	Net profit/(loss) for the year Average number of shares less average number of treasury shares