“I am very pleased that TORM has utilized its long-term relationship with Guangzhou Shipyard International to enter into an agreement to purchase four LR2 newbuildings with an option for an additional six vessels. Given the market outlook, we see this as an attractive way to grow and renew our LR2 fleet at a favorable price”, says CEO Jacob Meldgaard.
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TORM has today entered into an agreement to purchase four fuel-efficient LR2 newbuildings from Guangzhou Shipyard International (“GSI”) with expected delivery in the period between the fourth quarter of 2017 and the second quarter of 2018. The agreement includes the option to purchase up to six additional vessels within the LR2, LR1 or MR segment with expected delivery in 2018 and 2019. TORM has utilized its long-term relationship with GSI and China State Shipbuilding Corporation to source the contract. TORM already has 16 GSI vessels in the current fleet and has good technical and commercial experience with these vessels. The vessels will be constructed according to TORM’s specifications in order to optimize trading. This is TORM’s first ordering of newbuildings since 2008. TORM expects to have a total CAPEX relating to the four firm vessels of approximately USD 200m including extra costs related to TORM’s design requirements and supervision. TORM is in advanced dialogue with potential lenders in order to obtain financing for the newbuildings. With this agreement, TORM has CAPEX commitments of USD 273m covering the remaining CAPEX on TORM’s remaining three MR newbuildings, one second-hand MR vessel and the four new LR2 vessels. TORM has a liquidity position of approximately USD 280m including available debt facilities of USD 97m. |
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Contact Jacob Meldgaard, CEO, tel.: +45 3917 9200 Mads Peter Zacho, CFO, tel.: +45 3917 9200 Morten Agdrup, IR, tel.: +45 3917 9249 |
TORM A/S Tuborg Havnevej 18 DK-2900 Hellerup, Denmark Tel.: +45 3917 9200 / Fax: +45 3917 9393 www.torm.com |
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About TORM TORM is one of the world’s leading carriers of refined oil products. The Company operates a fleet of approximately 80 modern vessels with a strong 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 Copenhagen (ticker: TORM A). For further information, please visit www.torm.com. |
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Safe Harbor statements as to the future 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 statements other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words “believe,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect,” “pending” and similar expressions identify forward-looking statements. 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 the Company 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, the Company cannot guarantee 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 the world economy and currencies, changes in charter hire rates and vessel values, changes in demand for “ton 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 the regulation of shipping operations, 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, political events or acts by terrorists. Forward-looking statements are based on management’s current evaluation, and TORM is only under an obligation to update and change the listed expectations to the extent required by law. |
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