#Dividend #Denmark #Hellerup #TORM #TRMD

TORM plc Q3 2025 Results Overview

TORM plc has recently announced an impressive financial performance for the third quarter of 2025, marking it as the strongest quarter yet this year. Jacob Meldgaard, the Managing Director, emphasized the prowess of TORM's integrated operational model and the dedicated team behind it, attributing the company's market-leading performance to their efforts and commitment.

In Q3 2025, TORM achieved time charter equivalent (TCE) earnings amounting to USD 236.4 million, which includes unrealized losses on derivatives totaling USD 7.3 million. This figure stands in contrast to the same quarter in the previous year, where earnings were reported at USD 263.4 million, amidst unrealized gains of USD 0.8 million. Furthermore, adjusted EBITDA for the group reached USD 159.4 million, compared to USD 190.9 million in the same quarter in the previous year.

Net profit for the quarter reached USD 77.6 million, down from USD 130.7 million seen in Q3 2024, reflecting trends consistent with previous quarters. While shipping rates saw some improvement in Q3, it was noted that overall freight rates for the first nine months of the year were lower than in 2024, signaling a normalization of market conditions.

Geopolitical challenges and vessel sanctions have added layers of complexity to the tanker market during this quarter. TORM managed to secure an average TCE rate of USD/day 31,012, down from USD/day 33,722 in Q3 2024. The company reported an increase in available earning days to 7,859, compared to 7,788 in the prior year. The performance of TORM's vessel classes also varies: LR2 vessels achieved TCE rates of USD/day 38,685, while LR1 and MR vessels saw TCE rates of USD/day 29,508 and USD/day 28,632 respectively.

TORM showcased an impressive Return on Invested Capital (ROIC) of 13.8%, although it reflects lower freight rates compared to exceptionally high levels from the previous year. Consequently, the basic earnings per share (EPS) was logged at USD 0.79, significantly down from USD 1.38 in Q3 2024.

Key Financial Insights

The financial report highlights the following key figures for Q3 2025:

• - Time charter equivalent earnings (TCE): USD 236.4 million, down from USD 263.4 million (Q3 2024).
• - Adjusted EBITDA: USD 159.4 million compared to USD 190.9 million (Q3 2024).
• - Net profit: USD 77.6 million compared to USD 130.7 million (Q3 2024).
• - Basic EPS: USD 0.79 (Q3 2024: USD 1.38).
• - Dividend per share: USD 0.62, representing a payout ratio of 78% of net profit.

Business Highlights

During Q3 2025, TORM successfully completed the sale and delivery of two MR vessels, marking a strategic reduction in its fleet to optimize overall performance. Additionally, TORM sold another MR vessel while acquiring a 2010-built LR2 vessel, with both transactions expected to finalize within Q4 2025. The fleet size is anticipated to grow to 92 vessels following the acquisition of four more MR vessels built in 2014.

In July 2025, the company secured financing commitments amounting to USD 857 million on favorable terms, aimed at refinancing two existing loans covering 22 vessels. This financial maneuver is expected to enhance TORM’s capital structure and flexibility, ultimately aiming to reduce the cash break-even rate and potentially increase dividend payouts for shareholders.

Dividend Distribution

The Board of Directors at TORM has approved an interim dividend of USD 0.62 per share for Q3 2025, translating to an anticipated total dividend payment of USD 60.7 million. This dividend reflects the company's distribution policy and highlights TORM’s commitment to returning value to shareholders. Shareholders of record as of November 20, 2025, will be eligible for payment on December 3, 2025.

Financial Outlook for 2025

Looking ahead, as of October 31, 2025, TORM has successfully covered 55% of its earning days for Q4 at an average rate of USD/day 30,156. With 89% of earnings fixed for the entire year at an average rate of USD/day 28,281, the company anticipates EBITDA guidance for 2025 to fall between USD 540 - 590 million. TORM aims to adjust its business strategies to adapt to market fluctuations and shifts to enhance long-term shareholder value.

Overall, TORM plc is demonstrating a resilient approach amid the challenges posed by market volatility. This comprehensive set of results illustrates the firm’s commitment to optimizing both operational performance and shareholder returns as they look toward the future.