TORM PLC Posts Q2 2025 Net Profit of $59mln, Raises Guidance Amid Fleet Optimization and Refinancing Deals

TORM PLC (TRMD) reported Q2 2025 net profit of $59 million, with a dividend distribution of $0.40 per share. The company advanced its fleet optimization strategy, raised full-year earnings guidance, and secured up to $857 million in refinancing. However, geopolitical uncertainty and high fleet age pose challenges.

TORM PLC (TRMD), a leading carrier of refined oil products, released its Q2 2025 financial results, highlighting a net profit of $59 million and a dividend distribution of $0.40 per share. The company also announced an advancement in its fleet optimization strategy and secured up to $857 million in refinancing. However, geopolitical uncertainty and high fleet age pose significant challenges.

In the second quarter of 2025, TORM generated time charter equivalent earnings (TCE) of $208.2 million, including unrealized losses on derivatives of $2.2 million. This figure represents a decline of $117.7 million compared to the same period in 2024. Adjusted EBITDA totaled $129.0 million, a decrease of $122.1 million from the previous year. Net profit for the period amounted to $58.7 million, down $135.5 million year-over-year. Despite these declines, TORM achieved TCE rates of $26,672 per day on average, reflecting a resilient market environment [1].

Key vessel transactions included the sale and delivery of the 2008-built LR2 vessel TORM Mathilde and the 2008-built MR vessels TORM Voyager and TORM Discoverer. TORM also secured financing commitments of up to $857 million on attractive terms to refinance existing syndicated loans and lease agreements covering 22 vessels. The new financing structure combines term and revolving credit facilities, enhancing capital flexibility [1].

TORM's Board of Directors approved an interim dividend of $0.40 per share for the second quarter of 2025, equivalent to 67% of net profit. The distribution reflects the company's commitment to returning value to shareholders. The payment date is September 3, 2025, with the ex-dividend date set for August 21 and 22 for shares listed on Nasdaq OMX Copenhagen and Nasdaq New York, respectively [1].

Looking ahead, TORM has raised its full-year 2025 earnings guidance. The company expects TCE earnings to be in the range of $800 - $950 million, up from the previous guidance of $700 - $900 million. EBITDA is expected to be in the range of $475 - $625 million, compared to the previous guidance of $400 - $600 million. The revised guidance reflects the company's strong momentum heading into the second half of the year [1].

However, TORM faces challenges from geopolitical uncertainty and high fleet age. Volatile geopolitical developments and expanded sanctioning of vessels have added complexity to the tanker market. Additionally, the company's fleet age poses operational and maintenance challenges. TORM will continue to optimize its fleet and explore strategic options to mitigate these risks [1].

TORM will host a webcast and conference call for investors and analysts on August 14, 2025, at 09:00 am Eastern Time / 03:00 pm Central European Time. Participants can access the webcast or join by telephone using the provided dial-in numbers [1].

References:
[1] https://www.marketscreener.com/news/torm-plc-q2-2025-results-dividend-distribution-and-financial-outlook-2025-ce7c51d8de8af723