Aug 26, 2026 earnings call — Record quarter from geopolitical freight disruption
Record Q2 TCE earnings of USD 512 million; full-year TCE guidance now USD 1.4 billion to USD 1.6 billion.
Revenue $0.5B (est $0.5B) · EPS $3.25 (est $3.31) · Next-quarter revenue outlook $1.4B–$1.6B
Key quotes
"The second quarter was the strongest in TORM's history, driven by exceptionally strong freight markets, following heightened geopolitical tensions in the Middle East and the resulting disruption to global oil trade flows."
"As a result, we have established a phased pipeline of resale and newbuilding deliveries from 2027 through 2029 and potentially into 2030."
"As a result, we are increasing the midpoint of our TCE guidance from USD 1.3 billion to USD 1.5 billion."
Analyst Q&A 3
sell older ships now
Q (Jonathan Chappell · Evercore): He asked if the company would accelerate selling older vessels to lock high resale prices. He also asked why MRs have not rallied like other segments and if MRs could catch up.
A: Management said they have considered sales and run an NPV comparison of selling versus expected earnings to the vessel's usual life. Based on that calculation, they are not seeing signs they should accelerate divestitures. They also said global inventories are being depleted and there are fewer marginal refinery spillover trades for MRs until volumes normalize.
"And yes, I'm not seeing any signs of that we should accelerate based on that calculation." — Jacob Meldgaard (CEO)
why LR2 rates rose
Q (Frode Morkedal · Clarkson): He asked whether LR2's rate rebound was driven by rerouting/inefficiencies or by cargo flow changes, and what caused the recent pullback. He also asked if ship-to-ship shuttle trades include products, whether that will expand, and the effect on vessel values and product volumes.
A: Management said the LR2 move is driven by both lower volumes (due to Middle East disruptions) and reduced effective supply, and that inefficiencies mean only small extra volumes are needed to tighten the market. They said ship-to-ship shuttle trades have grown: from about 1 million barrels per day earlier to about 6 million barrels of crude and 1 million-barrel of CPP now, and they expect this shuttle trend to likely continue. They also said the clean/product side has not yet seen the same buying of tonnage as crude, and that choke points make the next months constructive but uncertain.
"Now fast forward today, we estimate that it's about 6 million barrels of crude and 1 million-barrel of CPP." — Jacob Meldgaard (CEO)
why MR newbuilds; financing plan
Q (Bendik Nyttingnes · Danske Bank): He asked why the company chose MR newbuilds instead of LR2s. He also asked what financial leverage they expect on the new vessels.
A: Management said they choose investments by comparing asset cost to expected cash flow, and that MRs were the better investment choice in the second and into the third quarter. They added they normally finance vessels at 50% leverage, which they view as a flexible sweet spot.
"So we would normally finance our vessels at 50% leverage." — Kim Balle