TORM plc 6-K, filed Nov 10, 2022

TORM plc (TRMD)

6-K 2022-11-10 For: 2022-09-30

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TORM plc filed this 6-K on November 10, 2022.

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	TORM PLC

Dated: November 10, 2022

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


USDm	Q3 2022	Q3 2021	Q1-Q3 2022	Q1-Q3 2021	FY 2021

INCOME STATEMENT
Revenue	448.1	155.5	996.0	430.4	619.5
Time charter equivalent earnings (TCE) ¹⁾ ⁵⁾	316.8	91.6	649.8	271.8	378.6
Gross profit ¹⁾	266.4	42.7	499.0	133.2	188.1
EBITDA ¹⁾	262.2	30.4	476.0	94.0	136.9
Operating profit/(loss) (EBIT)	228.6	-3.7	369.9	-2.9	1.4
Financial items	-11.3	-10.4	-34.9	-29.9	-42.2
Profit/(loss) before tax	217.3	-14.1	335.0	-32.8	-40.8
Net profit/(loss) for the year/period	217.1	-14.7	334.1	-33.9	-42.1
Net profit/(loss) ex. non-recurrent items¹⁾	201.9	-14.7	314.6	-33.1	-36.4

BALANCE SHEET AND CASH FLOW
Non-current assets	1,893.9	1,972.0	1,893.9	1,972.0	1,967.7
Total assets	2,545.1	2,235.3	2,545.1	2,235.3	2,331.0
Equity	1,403.4	1,050.0	1,403.4	1,050.0	1,052.2
Total liabilities	1,141.7	1,185.3	1,141.7	1,185.3	1,278.8
Invested capital ¹⁾	2,155.8	1,975.9	2,155.8	1,975.9	2,011.3
Net interest-bearing debt ¹⁾	764.0	938.2	764.0	938.2	972.1
Net Asset Value (NAV) (USDm) ²⁾	2,058.9	937.5	2,058.9	937.5	1,007.5
Cash and cash equivalents incl. restricted cash	238.5	109.9	238.5	109.9	171.7
Free cash flow	192.6	-48.3	267.4	-48.3	-242.7

¹⁾ For definition of the calculated key figures, please refer to the glossary on pages 28-33.


	Q3 2022	Q3 2021	Q1-Q3 2022	Q1-Q3 2021	FY 2021

KEY FINANCIAL FIGURES ¹⁾
Gross margins:
Gross profit	59.5%	27.5%	50.1%	30.9%	30.4%
EBITDA	58.5%	19.5%	47.8%	21.8%	22.1%
Operating profit/(loss)	51.0%	-2.4%	37.1%	-0.7%	0.2%
Return on Equity (RoE)	66.3%	-5.6%	36.3%	-4.4%	-4.1%
Return on Invested Capital (RoIC)	43.0%	-0.9%	23.6%	-0.3%	0.0%
Adjusted RoIC	41.8%	-0.9%	22.8%	-0.2%	0.2%
Equity ratio ³⁾	55.1%	47.0%	55.1%	47.0%	45.1%
TCE per day (USD) ⁵⁾	44,376	12,854	29,970	13,617	13,703
OPEX per day (USD) ⁵⁾	7,041	6,467	6,760	6,586	6,633
Loan-to-value (LTV) ratio ³⁾ ⁵⁾	30.9%	53.6%	30.9%	53.6%	52.3%

SHARE-RELATED KEY FIGURES ¹⁾
Basic earnings/(loss) per share	2.66	-0.18	4.12	-0.44	-0.54
Diluted earnings/(loss) per share	2.63	-0.19	4.07	-0.43	-0.54
Dividend per share	1.46	-	2.04	-	-
Net Asset Value per share (NAV/share) ³⁾	25.2	11.6	25.2	11.6	12.5
Stock price in DKK, end of period ³⁾	155.7	49.3	155.7	49.3	51.7
Number of shares ³⁾ ⁴⁾	81.6	80.6	81.6	80.6	80.7
Number of shares, weighted average (million) ⁴⁾	81.5	80.3	81.2	77.2	78.1

²⁾ Based on broker valuations, excluding charter commitments.
³⁾ End of period
⁴⁾ Excluding treasury shares
⁵⁾ For Tank segment

PROFIT BEFORE TAX SENSITIVITY TO USD 1,000 / DAY TCE EARNINGS (BASED ON DATA AS OF 06 NOVEMBER 2022)
	1H 2022	2H 2022	FY 2022
Earning days	14,866	13,893	28,759
Open days	-	3,065	3,065
Coverage Ratio	100.0%	77.9%	89.2%
PBT effect	USD 0m	USD 3m	USD 3m

	ROY	2023	2024
Total physical days
LR2	1,084	4,593	4,611
LR1	618	2,837	2,912
MR	5,142	20,132	20,505
Total	6,844	27,562	28,028

Covered days
LR2	125	-	-
LR1	48	-	-
MR	1,038	145	-
Total	1,212	145	-

	ROY	2023	2024
Covered, %
LR2	12	-	-
LR1	8	-	-
MR	20	1	-
Total	18	-	-

Coverage rates, USD/day
LR2	70,685	-	-
LR1	72,718	-	-
MR	44,124	16,008	-
Total	48,010	16,008	-

USDm	Q3 2021	Q4 2021	Q1 2022	Q2 2022	Q3 2022	Change Q3 21 - Q3 22

LR2 vessels
Available earning days	1.143	1.201	1.340	1.306	1.184	4%
Spot rates ¹⁾	13.217	16.658	17.220	39.027	52.595	298%
TCE per earning day ²⁾	15.315	15.529	18.432	30.741	55.532	263%
Operating days	1.148	1.228	1.346	1.331	1.220	6%
Operating expenses per operating day	6.833	7.276	6.615	6.961	7.196	5%
LR1 vessels
Available earning days	760	828	694	691	685	-10%
Spot rates ¹⁾	11.694	15.196	20.201	36.535	51.089	337%
TCE per earning day ²⁾	11.211	16.347	16.424	33.269	51.102	356%
Operating days	828	828	810	729	736	-11%
Operating expenses per operating day	6.271	6.527	6.668	6.588	6.640	6%
MR vessels
Available earning days	5.227	5.348	5.254	5.309	5.161	-1%
Spot rates ¹⁾	12.578	13.194	16.525	34.115	43.284	244%
TCE per earning day ²⁾	12.785	13.329	16.462	29.174	40.968	220%
Operating days	5.407	5.428	5.310	5.347	5.315	-2%
Operating expenses per operating day	6.402	6.694	6.391	6.808	7.055	10%
Handy vessels
Available earning days	184	184	180	92	6	-97%
Spot rates ¹⁾	6.283	10.444	13.391	12.602	12.505	99%
TCE per earning day ²⁾	6.304	10.060	13.614	12.196	6.397	1%
Operating days	184	184	180	103	7	-96%
Operating expenses per operating day	7.007	6.387	5.762	6.455	11.462	64%
Tanker segment
Available earning days	7.314	7.561	7.468	7.398	7.035	-4%
Spot rates ¹⁾	12.350	13.805	16.884	34.844	45.646	270%
TCE per earning day ²⁾	12.854	13.929	16.743	29.622	44.376	245%
Operating days	7.567	7.668	7.646	7.510	7.278	-4%
Operating expenses per operating day	6.467	6.762	6.445	6.809	7.041	9%

TORM FLEET DEVELOPMENT The table shows TORM’s operating fleet. In addition to 55 owned product tankers on the water, TORM had 23 vessels under sale-and-leaseback agreements with options to buy back the vessels as of 30 September 2022 (financially reported as owned vessels in accordance with our accounting policies). During Q3 2022, TORM delivered four vessels including two LR2 vessels (TORM Valborg and TORM Ingeborg), one MR vessel (TORM Moselle) and the last handysize vessel (TORM Gyda). In addition, TORM took delivery of a second-hand LR2 vessel (TORM Hannah). The vessel is financed under a sale-and- leaseback agreement. At the time of reporting, TORM does not expect any changes to the fleet.	TORM FLEET DEVELOPMENT
		Q2 2022	Changes	Q3 2022	Changes	FY 2022
	Owned vessels
	LR2	9	-2	7	-	7
	LR1	8	-	8	-	8
	MR	41	-1	40	-	40
	Handysize	1	-1	-	-	-
	Total	59	-4	55	-	55

	Chartered-in and leaseback vessels
	LR2	5	1	6	-	6
	LR1	-	-	-	-	-
	MR	17	-	17	-	17
	Handysize	-	-	-	-	-
	Total	22	-	23	-	23
						-
	Total fleet	81	-3	78	-	78

USDm	Note	Q3 2022	Q3 2021	Q1-Q3 2022	Q1-Q3 2021	FY 2021
Revenue		448.1	155.5	996.0	430.4	619.5
Port expenses, bunkers, commissions and other cost of goods sold		-130.4	-63.9	-345.3	-158.6	-240.9
Operating expenses	1	-51.3	-48.9	-151.7	-138.6	-190.5
Profit from sale of vessels	2	9.2	-	10.0	-	-
Administrative expenses	1, 2	-13.4	-12.3	-39.3	-39.1	-51.5
Other operating income and expenses		-0.3	0.1	6.1	-	0.4
Share of profit/(loss) from joint ventures		0.3	-0.1	0.2	-0.1	-0.1
Impairment losses and reversal of impairment on tangible assets	2	0.2	-	-2.6	-0.8	-4.6
Depreciation	2	-33.8	-34.1	-103.5	-96.1	-130.9

Operating profit/(loss) (EBIT)		228.6	-3.7	369.9	-2.9	1.4

Financial income		1.2	0.1	1.5	0.2	0.2
Financial expenses		-12.5	-10.5	-36.4	-30.1	-42.4

Profit/(loss) before tax		217.3	-14.1	335.0	-32.8	-40.8

Tax		-0.2	-0.6	-0.9	-1.1	-1.3

Net profit/(loss) for the period		217.1	-14.7	334.1	-33.9	-42.1

Net profit/loss for the period attributable to:
TORM plc shareholders		217.1	-14.7	334.1	-33.9	-42.1
Non-controlling interest		-	-	-	-	-
Net profit/(loss) for the period		217.1	-14.7	334.1	-33.9	-42.1

EARNINGS PER SHARE
Basic earnings/(loss) per share (USD)		2.66	-0.18	4.12	-0.44	-0.54
Diluted earnings/(loss) per share (USD)		2.63	-0.19	4.07	-0.43	-0.54

		30 September	30 September	31 December
USDm	Note	2022	2021	2021
ASSETS
NON-CURRENT ASSETS
Intangible assets
Goodwill	12	1.9	-	-
Other intangible assets	12	0.5	-	-
Total intangible assets		2.4	-	-

Tangible fixed assets
Land and buildings		3.1	4.9	4.8
Vessels and capitalized dry-docking	2	1,876.2	1,930.4	1,937.8
Prepayments on vessels	3	-	22.8	12.0
Other plant and operating equipment		6.7	7.1	6.3
Total tangible fixed assets		1,886.0	1,965.2	1,960.9

Financial assets
Investments in joint ventures		0.1	1.6	1.5
Loan receivables		4.6	4.6	4.6
Deferred tax asset		0.6	0.6	0.7
Other investments		0.2	-	-
Total financial assets		5.5	6.8	6.8

Total non-current assets		1,893.9	1,972.0	1,967.7

CURRENT ASSETS
Inventories		72.4	43.7	48.8
Trade receivables		247.7	69.0	84.0
Other receivables		78.7	36.6	40.0
Prepayments		13.9	4.1	5.6
Cash and cash equivalents incl. restricted cash		238.5	109.9	171.7
Current assets, excl. assets held-for-sale		651.2	263.3	350.1

Assets held-for-sale	2	-	-	13.2

Total current assets		651.2	263.3	363.3

TOTAL ASSETS		2,545.1	2,235.3	2,331.0

USDm	Common shares	Share premium	Treasury shares	Hedging reserves	Translation reserves	Retained profit	Equity attri- butable to shareholders of TORM plc	Non-controlling interest	Total

Equity as of 1 January 2022	0.8	159.8	-4.2	-3.6	0.2	899.2	1,052.2	-	1,052.2

Comprehensive income/loss for the period
Net profit/(loss) for the period	-	-	-	-	-	334.1	334.1	-	334.1
Other comprehensive income/(loss) for the period	-	-	-	54.7	-0.9	-	53.8	-	53.8
Total comprehensive income/(loss) for the period	-	-	-	54.7	-0.9	334.1	387.9	-	387.9

Capital increase ¹⁾	-	6.7	-	-	-	-	6.7	-	6.7
Share-based compensation	-	-	-	-	-	1.6	1.6	-	1.6
Dividend	-	-	-	-	-	-47.3	-47.3	-	-47.3
Total changes in equity for the period	-	6.6	-	54.7	-0.9	288.4	348.8	-	348.8

Non-controlling interest arising on acquisition	-	-	-	-	-	-	-	2.4	2.4

Equity as of 30 September 2022	0.8	166.4	-4.2	51.1	-0.7	1,187.6	1,401.0	2.4	1,403.4
¹⁾ During the year, the share capital was increased amounting to USD 6.7m as a result of the exercise of Restricted Share Units.

USDm	Note	30 September 2022			30 September 2021			31 December 2021
		Tank	Marine Exhaust	Total	Tank	Marine Exhaust	Total	Tank	Marine Exhaust	Total
ASSETS
NON-CURRENT ASSETS
Intangible assets
Goodwill		-	1.9	1.9	-	-	-	-	-	-
Other intangible assets		-	0.5	0.5	-	-	-	-	-	-
Total intangible assets		-	2.4	2.4	-	-	-	-	-	-

TANGIBLE FIXED ASSETS
Land and buildings		3.1	-	3.1	4.9	-	4.9	4.8	-	4.8
Vessels and capitalized dry-docking	2	1,876.2	-	1,876.2	1,930.4	-	1,930.4	1,937.8	-	1,937.8
Prepayments on vessels	3	-	-	-	22.8	-	22.8	12.0	-	12.0
Other plant and operating equipment		5.2	1.5	6.7	7.1	-	7.1	6.3	-	6.3
Total tangible fixed assets		1,884.5	1.5	1,886.0	1,965.2	-	1,965.2	1,960.9	-	1,960.9

FINANCIAL ASSETS
Investments in joint ventures		0.1	-	0.1	1.6	-	1.6	1.5	-	1.5
Loan receivables		4.6	-	4.6	4.6	-	4.6	4.6	-	4.6
Deferred tax asset		0.5	0.1	0.6	0.6	-	0.6	0.7	-	0.7
Other investments		0.2	-	0.2	-	-	-	-	-	-
Total financial assets		5.4	0.1	5.5	6.8	-	6.8	6.8	-	6.8

Total non-current assets		1,889.9	4.0	1,893.9	1,972.0	-	1,972.0	1,967.7	-	1,967.7

CURRENT ASSETS
Inventories		65.4	7.0	72.4	43.7	-	43.7	48.8	-	48.8
Trade receivables		246.7	1.0	247.7	69.0	-	69.0	84.0	-	84.0
Other receivables		76.1	2.6	78.7	36.6	-	36.6	40.0	-	40.0
Prepayments		10.4	3.5	13.9	4.1	-	4.1	5.6	-	5.6
Cash and cash equivalents incl. restricted cash		236.3	2.2	238.5	109.9	-	109.9	171.7	-	171.7
Current assets, excl. assets held-for-sale		634.9	16.3	651.2	263.3	-	263.3	350.1	-	350.1

Assets held-for-sale	2	-	-	-	-	-	-	13.2	-	13.2

Total current assets		634.9	16.3	651.2	263.3	-	263.3	363.3	-	363.3

TOTAL ASSETS		2,524.8	20.3	2,545.1	2,235.3	-	2,235.3	2,331.0	-	2,331.0

	1 September
USDm	2022

Intangible assets	0.5
Tangible fixed assets	1.6
Deferred tax assets	0.1
Inventories	5.6
Trade receivables	1.8
Other receivables	3.8
Prepayments	1.5
Cash and cash equivalents	3.0
Borrowings	-6.9
Deferred tax liabilities	-0.1
Provisions	-0.4
Other non-current liabilities	-0.8
Trade payables	-1.5
Other liabilities	-0.5
Deferred income	-3.3
Current tax liabilities	-0.3
Net identifiable assets acquired	4.1
Goodwill	1.9
Total net assets acquired	6.0
Of which fair value of non-controlling interest	-2.4
Total purchase consideration	3.6

Cash consideration	2.0
Fair value previously held interests	1.6
Total purchase consideration	3.6

Cash acquired	3.0
Cash consideration	-2.0
Acquisition of subsidiaries, net of cash acquired	1.0

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