Results from TORM plc’s Annual General Meeting on 14 April 2021 - Seite 3

Again in 2020, TORM was able to deliver best-in-class commercial performance and with TORM’s focus on optimal geographic positioning of the fleet and strategic priority of trading in the spot market, the fleet was well positioned to capture the sudden market strength in the second quarter of the year.

For the full year 2020, TORM realized average Time Charter Equivalent (TCE) earnings of USD/day 19,800 vs. USD/day 16,526 in 2019. This was considerably above TORM’s profit before tax break-even level and in the top range compared to industry peers.

During the year, TORM continued to renew the fleet and took delivery of four vessels under our newbuilding program, purchased two 2010-built MR vessels and ordered two fuel-efficient, dual-fuel ready LR2 newbuilds. TORM also acted when the market for older product tankers turned out favorable especially towards the end of the second quarter and sold eight vessels built between 1997-2003.

In connection with the release of the 2020 Annual Report, TORM finalized a transaction with Team Tankers for the purchase of eight 2007-2012 built MR vessels in a partly cash and partly share based transaction. Six of these vessels have specialized cargo tank configurations and extended tank segregations that allow for enhanced trading flexibility through chemical trading options. All eight vessels will be operating within the existing TORM platform, and the increased scale will lower our administrative costs per earning day by approximately USD 175, thereby creating annual synergies of around USD 5m.

During the year, TORM performed a review of our key strategic choices, business model and organization. The review substantiated that the integrated nature of the operating platform offers intrinsic added value across TORM and is a vital element in TORM’s ability to outperform the product tanker market. 

In a year as extraordinary as 2020, it further pleases me to note that TORM has continued and even further intensified our integration of environmental measures.

At TORM, the green agenda has been an integral part of the Company since it signed up for the UN Global Compact in 2009, and to quantify our future ambitions, TORM has set targets to reduce our relative CO₂ emissions by a minimum of 40% by 2030 compared to 2008. We will pursue the targets by continuing the behavioral and technical optimizations which have enabled us to realize a 22% reduction as well as engage in the development of next generation fuel efficient vessel design with selected partners.