TORM plc Implements Capital Reduction and Cancels Treasury Shares

TORM plc Announces Capital Reduction and Cancellation of Treasury Shares

TORM plc, a prominent player in the refined oil products transportation sector, has successfully completed a significant financial restructuring involving a capital reduction and the cancellation of treasury shares. This initiative was confirmed by an order from the High Court of Justice in England and Wales, issued on May 13, 2025, permitting a capital reduction amounting to USD 180 million. The order was duly registered with the Registrar of Companies on May 15, 2025, marking a pivotal moment for the company's financial trajectory.

The court's approval allows TORM to reduce its share premium account, reflecting its ongoing commitment to enhance shareholder value. This strategic move is not merely a transactional adjustment but a thoughtful response to the evolving market conditions and the company's operational objectives. It is worth noting that the capital reduction does not entail any distribution or payment of capital by the company, nor does it alter the nominal value of the shares held by shareholders.

In conjunction with the capital reduction, the court also sanctioned the cancellation of 493,371 A-shares that were previously classified as treasury shares. This cancellation further streamlines TORM's equity structure, bringing its share capital to USD 979,411.95, which is now divided into 97,941,193 A-shares, along with one B-share and one C-share, each with specific voting rights. The A-shares collectively represent 97,941,193 votes, while the B and C-shares maintain unique voting privileges, allowing TORM to uphold effective governance and shareholder engagement.

This announcement aligns with TORM's recent strategic goals, which were discussed during the Annual General Meeting held on April 16, 2025, where shareholders validated the capital reduction and cancellation plans. The strong support from the company’s shareholders signifies confidence in TORM’s management and its forward-looking strategies.

TORM plc has a storied history dating back to 1889, establishing itself as a leader in the transportation of refined oil products, with a steadfast dedication to safety, environmental stewardship, and exceptional customer service. The company operates a robust fleet of product tanker vessels catering to various global markets, thereby playing a significant role in the energy logistics sector. TORM’s shares are actively traded on multiple exchanges, including Nasdaq in Copenhagen and Nasdaq in New York, under the tickers TRMD A and TRMD.

Moreover, TORM recognizes the dynamic nature of its operational environment. As the company navigates through global challenges, including geopolitical tensions and fluctuations in oil prices, it remains committed to maintaining its competitive edge. The robust framework provided by the recent financial adjustments is designed to support the company’s agility in responding to both opportunities and risks present in the maritime and energy sectors.

In conclusion, the successful completion of the capital reduction and treasury share cancellation exemplifies TORM’s strategic commitment to maximizing shareholder value while reinforcing its operational foundation amidst a challenging maritime landscape. As TORM continues to adapt and evolve, stakeholders can anticipate updates reflecting its ongoing efforts to enhance shareholder returns and operational efficiency, all while adhering to its core values of safety and sustainability in its business practices.