TORM plc (TRMD)

TORM plc is one of the world's largest carriers of refined oil products. Founded as TORM A/S in 1889 and listed in Copenhagen since 1905, it became a subsidiary of TORM plc, an English public limited company, in the 2016 redomiciliation. Its activities are mainly the transport of clean petroleum products such as gasoline, jet fuel, kerosene, naphtha and gas oil, and occasionally dirty products such as fuel oil. It operates a fleet of 86 owned or chartered-in vessels. Its Class A common shares trade on Nasdaq Copenhagen and Nasdaq New York under "TRMD A" and "TRMD".

The company reports two segments. The Tanker segment consists of LR2, LR1 and MR product tankers, operated together as a combined internal pool and employed mainly in the spot market. The vessels can carry multiple sizes of refined oil cargo and are highly interchangeable. TORM exited the Handysize class in 2022. The Marine Exhaust segment began in September 2022, when TORM bought 75% of Marine Exhaust Technology A/S. It develops and produces green marine equipment and sells it with or without installation services. The fleet was expanded in 2023 and early 2024 through purchases of LR1, LR2 and MR eco vessels, some paid partly in shares, and older vessels were sold. Sale and leaseback arrangements finance many vessels. Scrubbers are installed on most of the fleet, with 81 vessels expected to be fitted by the end of 2024. TORM pays regular dividends under a distribution policy.

Tanker customers are mainly companies in the oil industry, including major oil companies, state-owned oil companies and international trading houses. TORM earns revenue by charging them to carry mainly refined oil products and occasionally crude oil. In 2023 its 20 largest customers made up about 71% of revenue. One customer accounted for 8%, and no tanker customer exceeded 10%. The strategy is to employ vessels worldwide mainly in the spot market. TORM may also use longer time charters, shorter-term charters, contracts of affirmation and forward freight agreements. In 2023 it agreed two 2-year time charter-outs for LR2 vessels at $43,000 per day.

TORM runs an in-house platform for commercial, administrative and technical management. It handles the commercial management of all its vessels and the technical management of all its owned vessels except three, which an unaffiliated third party manages. It also conducts all vessel sale and purchase activity in-house. Its vessels were built at shipyards in South Korea, China and Croatia, including Hyundai, Guangzhou Shipyard International, Samsung, STX and Brodotrogir. The registered office is in London. Commercial and technical activities are managed from Hellerup, Denmark. Other offices are in Mumbai, New Delhi, Manila, Cebu, Singapore, Houston, Wilmington (Delaware) and Dubai.