ANNOUNCEMENT NO 10 - 2010
1 November 2010
Sale of two dry bulk newbuildings
TORM has entered into an agreement to sell the two Kamsarmax dry bulk
newbuildings TORM Karen and TORM Kate. Both vessels are planned to be delivered
to TORM in Q1 2011. The newbuildings have been sold for a total consideration
of USD 90 million with a total net loss of USD 16 million.
The newbuildings are expected to be delivered to the new owner in the first
quarter of 2011, where the effect of the transaction will be recognised in the
financial statements.
"We consider timing of the sale to be attractive given the large number of new
vessel deliveries in the coming years. Going forward we expect that the
continued volatile dry bulk market will offer many interesting opportunities
which we are ready to exploit," says CEO Jacob Meldgaard.
Following the sale of the vessels, TORM's owned fleet consists of 68 product
tankers and two dry bulk vessels. In addition, TORM has seven product tankers
and two dry bulk vessels on order.
Contact:
Jacob Meldgaard, CEO, tel.: +45 39 17 92 00
Roland M. Andersen, CFO, tel.: +45 39 17 92 00
About TORM
TORM is one of the world's leading carriers of refined oil products as well as
a significant player in the dry bulk market. The Company runs a fleet of
approximately 140 modern vessels in cooperation with other respected shipping
companies sharing TORM's commitment to safety, environmental responsibility and
customer service.
TORM was founded in 1889. The Company conducts business worldwide and is
headquartered in Copenhagen, Denmark. TORM's shares are listed on NASDAQ OMX
Copenhagen (ticker: TORM) and on NASDAQ in New York (ticker: TRMD). For further
information, please visit www.torm.com.
Safe Harbor Forward Looking Statements
Matters discussed in this release may constitute forward-looking statements.
Forward-looking statements reflect our current views with respect to future
events and financial performance and may include statements concerning plans,
objectives, goals, strategies, future events or performance, and underlying
assumptions and other statements, which are other than statements of historical
facts. The forward-looking statements in this release are based upon various
assumptions, many of which are based, in turn, upon further assumptions,
including without limitation, Management's examination of historical operating
trends, data contained in our records and other data available from third
parties. Although TORM believes that these assumptions were reasonable when
made, because these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict
and are beyond our control, TORM cannot assure you that it will achieve or
accomplish these expectations, beliefs or projections.
Important factors that, in our view, could cause actual results to differ
materially from those discussed in the forward looking statements include the
strength of world economies and currencies, changes in charter hire rates and
vessel values, changes in demand for “tonne miles” of oil carried by oil
tankers, the effect of changes in OPEC's petroleum production levels and
worldwide oil consumption and storage, changes in demand that may affect
attitudes of time charterers to scheduled and unscheduled dry-docking, changes
in TORM's operating expenses, including bunker prices, dry-docking and
insurance costs, changes in governmental rules and regulations including
requirements for double hull tankers or actions taken by regulatory
authorities, potential liability from pending or future litigation, domestic
and international political conditions, potential disruption of shipping routes
due to accidents and political events or acts by terrorists. Risks and
uncertainties are further described in reports filed by TORM with the US
Securities and Exchange Commission, including the TORM Annual Report on Form
20-F and its reports on Form 6-K.
Forward looking statements are based on management's current evaluation, and
TORM is only under obligation to update and change the listed expectations to
the extent required by law.
