TRMD

TORM (NASDAQ:TRMD) just posted the best quarter in its history, and the reason has almost nothing to do with anything the company built on purpose. On its August 26 earnings call, the product tanker owner reported second-quarter TCE earnings of $512 million, more than double the $208 million from a year earlier, with net profit hitting a record $338 million. The driver wasn't new ships or clever trading. It was chaos around the Strait of Hormuz, chaos that rerouted tankers around the Cape of Good Hope and turned scarce vessel capacity into eye-popping day rates. The numbers show just how directly that chaos hit the bottom line. EBITDA jumped to $416 million from $127 million, and earnings per share rose to $3.31 from $0.60. CFO Kim Balle summed up why, noting that incremental TCE "converted almost on a 1:1 into EBITDA," a reflection of a cost base that barely moves even as revenue surges. Management raised full-year TCE guidance to $1.4 billion to $1.6 billion, up from $1.15 billion to $1.45 billion, and lifted EBITDA guidance to $1.0 billion to $1.2 billion. The board approved a $2.40 per share dividend, a $246 million payout, continuing a run that has returned $16.10 per share, or $1.5 billion, since 2023 even as the fleet grew from 78 vessels to 97. The balance sheet backs it up: net interest-bearing debt fell to $715 million from $894 million, net loan-to-value sits at 22.4%, and broker valuations put the fleet at $4.1 billion as of June 30, with net asset value at $3.7 billion, or $36.50 per share. Supply is tightening structurally too. Roughly 70 LR2 vessels have shifted from clean products into crude this year, cutting effective clean product capacity by about 5%, while roughly a quarter of the combined LR2 and Aframax fleet is under sanctions, most of it too old to ever return to mainstream trading. CEO Jacob Meldgaard was blunt about what that volatility looks like in practice, pointing to "the wide gap between historical highs and lows" as proof that freight rates can swing sharply from one month to the next. The company's own quarters make the case: TCE earnings jumped from $286 million in the first quarter of 2026 to $512 million in the second. That swing is tied almost entirely to geopolitics that can reverse. Oil flows had already recovered from roughly 17% below pre-conflict levels in April and May to about 10% below by July, before Meldgaard warned that "renewed hostilities are again disrupting trade" around Hormuz. Management said it won't speculate on when the strait might fully reopen, and even flagged that inventory rebuilding after a resolution would add only 1% to 2% to global trade volumes over the next 12 months, a modest cushion against a return to calmer, lower rates. The 30-plus day voyage extension the company cited for the vessel TORM Innovation illustrates the point from the other direction: the extra earnings are coming from disruption, not from durable new demand. Meanwhile, elevated secondhand vessel prices pushed TORM toward newbuildings with deliveries stretching from 2027 through 2029 and potentially into 2030, tying up capital years before it pays off, and Meldgaard said current valuations don't support accelerating any vessel sales despite those high prices. Operating expenses also crept up to $8,315 per day, on higher crew and consumable costs. Hedge fund ownership rose from 20 funds to 24 in the most recent quarter, a sign of building conviction. Yet shares trade at a forward P/E of just 4.84 as of August 31, a multiple that assumes today's earnings won't stick around. Short interest is only 1.65% of float, showing little organized betting against the stock. That combination is the tension running through TORM right now. TORM's record quarter is real, and so is the mismatch between what it earned and why. For the bulls, sanctions have permanently sidelined aging tonnage and the shift of LR2s into crude has structurally tightened clean product capacity regardless of what happens in the Middle East. For the bears, the same disruptions that built this quarter's profit are the kind that can vanish with a ceasefire, and TORM's own results already show earnings swinging by hundreds of millions of dollars within a single year. While we acknowledge the potential of TRMD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Future Stocks to Buy Under $10 and 12 Best Performing Semiconductor Stocks to Invest In. Disclosure: None. Follow Insider Monkey on Google News.

HELLERUP, Denmark, Aug. 26, 2026 /PRNewswire/ -- INSIDE INFORMATION "We delivered the strongest quarterly results in TORM's history, turning exceptional market conditions into tangible value for our shareholders," said Jacob Meldgaard, CEO of TORM, adding: "Strong earnings and our confidence in continued market strength have led us to raise our full-year guidance by USD 200m." Financial Results In the second quarter of 2026, TORM (NASDAQ: TRMD) (NASDAQ: TRMD-A) generated time charter equivalent earnings (TCE) of USD 512m (2025, same period: USD 208m). EBITDA for the Group totaled USD 416m including unrealized gains on financial instruments of USD 7m (2025, same period: USD 127m including unrealized losses on financial instruments of USD 2m), while net profit for the period amounted to USD 338m (2025, same period: USD 59m), thus marking a new all-time high for TORM's quarterly results. During the quarter, freight rates rose to unprecedented levels as the conflict involving the US, Israel, and Iran, together with the subsequent closure of the Strait of Hormuz, materially disrupted global oil trade flows. The loss of Middle Eastern exports triggered a shift toward replacement barrels from the United States. While the ceasefire initially suggested a return to more normal trading conditions, renewed attacks and restrictions quickly reinstated uncertainty. Consequently, the market continued to operate in a "no war, no peace" environment, with fluctuating transit conditions through the Strait of Hormuz creating additional inefficiencies in global trade flows and underpinning freight rates. In this market, TORM achieved fleet-wide TCE rates of USD/day 59,301 on average (2025, same period: USD/day 26,672), and available earning days increased to 8,519 (2025, same period: 7,888). Our vessel class LR2 achieved TCE rates of USD/day 66,993, the LR1 vessels achieved TCE rates of USD/day 57,550, and the MR vessels achieved TCE rates of USD/day 57,040. For the second quarter of 2026, Return on Invested Capital amounted to 44.2% (2025, same period: 10.0%) reflecting the exceptionally high freight rates and basic EPS amounted to USD 3.31 (2025, same period: USD 0.60). Key Figures *Excludes unrealized gains/losses on derivatives. Business Highlights In the second quarter of 2026, TORM took delivery of two 2015-built MR vessels, now renamed TORM Dehradun and TORM Dapitan, increasing TORM's fleet to 97 vessels. Also, during the second quarter, TORM acquired six MR resale vessels, with deliveries scheduled from the first quarter of 2027 through 2028. Subsequent to quarter-end, TORM entered into an agreement to acquire six MR newbuilding vessels, with options for an additional two vessels. The six vessels are scheduled for delivery in 2029, while the optional vessels are expected to be delivered in 2030 if exercised. Accordingly, TORM's fleet renewal and expansion program is distributed over the coming years, with vessel deliveries scheduled from 2027 through 2029 (and potentially 2030), providing a phased increase in fleet capacity. Based on broker valuations, TORM's fleet had a market value of USD 4,056m (2025, same date: USD 2,888m). and TORM's consolidated Net Asset Value (NAV) was USD 3,737m as of 30 June 2026 (2025, same date: USD 2,300m) translating into NAV per share of USD 36.50 (2025, same date: USD 23.50). Distribution of Dividend Today, TORM's Board of Directors approved an interim dividend for the second quarter of 2026 of USD 2.40 per share, corresponding to an expected total dividend payment of USD 246m. The distribution for the quarter is equivalent to 73% of net profit and is consistent with the Company's Distribution Policy. The dividend will be paid on 24 September 2026 to shareholders of record as of 10 September 2026. The ex-dividend date will be 09 September 2026 for shares listed on Nasdaq Copenhagen and 10 September 2026 for shares listed on Nasdaq New York. Financial Outlook 2026 - INSIDE INFORMATION As of 18 August 2026, TORM had covered 73% of the Q3 2026 earning days at an average rate of USD/day 38,606. By vessel class, coverage stood at 83% for LR2s at USD/day 49,255, 61% for LR1s at USD/day 32,608 and 71% for MRs at USD/day 35,247. For the full year 2026 70% of the earning days have been fixed at an average rate of USD/day 45,391. The remaining part of the earning days in 2026 - equivalent to 10,271 days - remains open and thus subject to market fluctuations. A change in freight rates of USD/day 1,000 will, all else equal, impact EBITDA by approximately USD 10m. Based on the earnings realized this far as well as the outlook for the remaining part of the year, TORM upgrades its full-year guidance. For the full year 2026, TCE earnings are now expected to exceed the previous guidance and are now estimated to USD 1,400-1,600m (previous guidance USD 1,150-1,450m). EBITDA for the full year 2026 is expected to be in the range of USD 1,000-1,200m (previous guidance USD 800-1,100m) based on the current fleet size. Webcast and Conference Call TORM will host a webcast and conference call for investors and analysts today, Wednesday 26 August 2026 at 09:00 am Eastern Time / 03:00 pm Central European Time. Participants joining webcast: Please access the webcast here. Participants joining by telephone:Please call one of the dial-in numbers below at least ten minutes prior to the start (Conference ID: 6131756): Denmark: +45 32 74 07 10United Kingdom: +44 20 3481 4247United States: +1 (646) 307 1963 ContactsMikael Bo Larsen, Head of Investor RelationsTel.: +45 5143 8002 About TORM TORM is one of the world's leading carriers of refined oil products. TORM operates a fleet of product tanker vessels with a strong commitment to safety. environmental responsibility and customer service. TORM was founded in 1889 and conducts business worldwide. TORM's shares are listed on Nasdaq in Copenhagen and on Nasdaq in New York (NASDAQ: TRMD-A) (NASDAQ: TRMD) (ISIN: GB00BZ3CNK81). For further information. Please visit www.torm.com. Safe Harbor Statement as to the Future Matters discussed in this release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. 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 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. Words such as, but not limited to, "expects," "anticipates," "intends," "plans," "believes," "estimates," "targets," "projects," "forecasts," "potential," "continue," "possible," "likely," "may," "could," "should" and similar expressions or phrases may identify forward-looking statements. The forward-looking statements in this release are based upon various assumptions, many of which are, in turn, based 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 that 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, but are not limited to, our future operating or financial results; changes in governmental rules and regulations or actions taken by regulatory authorities; inflationary pressure and central bank policies intended to combat overall inflation and rising interest rates and foreign exchange rates; general domestic and international political conditions or events, including "trade wars" and the war between Russia and Ukraine, the conflicts in the Middle East; international sanctions against Russian oil and oil products; changes in economic and competitive conditions affecting our business, including market fluctuations in charter rates and charterers' abilities to perform under existing time charters; changes in the supply and demand for vessels comparable to ours and the number of newbuildings under construction; the highly cyclical nature of the industry that we operate in; the loss of a large customer or significant business relationship; changes in worldwide oil production and consumption and storage; risks associated with any future vessel construction; our expectations regarding the availability of vessel acquisitions and our ability to complete acquisition transactions planned; availability of skilled crew members other employees and the related labor costs; work stoppages or other labor disruptions by our employees or the employees of other companies in related industries; effects of new products and new technology in our industry; new environmental regulations and restrictions; the impact of an interruption in or failure of our information technology and communications systems, including the impact of cyber-attacks, upon our ability to operate; potential conflicts of interest involving members of our Board of Directors and Senior Management; the failure of counterparties to fully perform their contracts with us; changes in credit risk with respect to our counterparties on contracts; adequacy of insurance coverage; our ability to obtain indemnities from customers; changes in laws, treaties or regulations; our incorporation under the laws of England and Wales and the different rights to relief that may be available compared to other countries, including the United States; government requisition of our vessels during a period of war or emergency; the arrest of our vessels by maritime claimants; any further changes in U.S. trade policy that could trigger retaliatory actions by the affected countries; the impact of the U.S. presidential and congressional election results affecting the economy, future government laws and regulations and trade policy matters, such as the imposition of tariffs and other import restrictions; potential disruption of shipping routes due to accidents, climate-related incidents, adverse weather and natural disasters, environmental factors, political events, public health threats, acts by terrorists or acts of piracy on ocean-going vessels; damage to storage and receiving facilities; potential liability from future litigation and potential costs due to environmental damage and vessel collisions; and the length and number of off-hire periods and dependence on third-party managers. In the light of these risks and uncertainties, undue reliance should not be placed on forward-looking statements contained in this release because they are statements about events that are not certain to occur as described or at all. These forward-looking statements are not guarantees of our future performance, and actual results and future developments may vary materially from those projected in the forward-looking statements. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to release publicly any revisions or updates to these forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events. Please see TORM's filings with the U.S. Securities and Exchange Commission for a more complete discussion of certain of these and other risks and uncertainties. The information set forth herein speaks only as of the date hereof, and the Company disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication. This information was brought to you by Cision http://news.cision.com https://news.cision.com/torm-plc/r/torm-plc-q2-2026-results--dividend-distribution--and-financial-outlook-2026,c4387562 The following files are available for download: View original content:https://www.prnewswire.com/news-releases/torm-plc-q2-2026-results-dividend-distribution-and-financial-outlook-2026-302860312.html

Interested in Torm Plc? Here are five stocks we like better. Record Q2 performance: Torm’s TCE earnings more than doubled year over year to $512 million, while EBITDA rose to $416 million and net profit reached $338 million. Fleet-wide TCE rates climbed to $59,301 per day amid Middle East trade disruptions and longer shipping routes. Dividend and guidance increased: The board approved a $2.40-per-share interim dividend totaling $246 million. Torm raised 2026 TCE guidance to $1.4 billion–$1.6 billion and EBITDA guidance to $1.0 billion–$1.2 billion, supported by strong freight markets and contracted earnings. Balance sheet strengthened amid ongoing uncertainty: Net debt fell to $715 million and net loan-to-value improved to 22.4%, while the fleet’s broker valuation rose to approximately $4.1 billion. Management remains constructive on product-tanker demand, though geopolitical risks and disruptions at major trade chokepoints remain significant variables. 3 Stocks That Just Announced Big Dividend Increases Torm (NASDAQ:TRMD) reported its strongest quarterly financial performance on record for the second quarter of 2026, as freight rates surged amid disruptions to Middle East oil trade flows and vessel rerouting. The product tanker operator generated time charter equivalent, or TCE, earnings of $512 million, more than doubling $208 million reported in the prior-year quarter. EBITDA rose to $416 million from $127 million, while net profit increased to $338 million from $59 million. Basic earnings per share were $3.31. → What Rising Delivery Forecasts Say About Rivian's Stock Prospects High Dividend Yields Make These 2 Shipping Stocks Stand Out CEO Jacob Meldgaard said heightened geopolitical tensions in the Middle East, including disruptions around the Strait of Hormuz, created inefficiencies that increased voyage distances and reduced effective vessel availability. He said Torm’s integrated “One TORM” operating model helped the company respond to shifting conditions and capture opportunities across its fleet. Torm’s fleet-wide average TCE rate reached $59,301 per day in the second quarter, compared with $34,937 per day in the first quarter. LR2 vessels earned about $67,000 per day, while LR1 and MR vessels each generated slightly more than $57,000 per day, according to CFO Kim Balle. → NVIDIA Reveals $21 Billion SpaceX Stake: Signal of Confidence or Circular Financing? Is the 149% Dividend for ZIM Integrated Shipping in Jeopardy? Operating expenses were $8,315 per day. Balle said the year-over-year increase was primarily due to higher crew-change expenses and consumable costs, though he characterized costs as remaining competitive. The board approved an interim dividend of $2.40 per share, or a total distribution of $246 million. Balle said the payout represented free cash flow generated during the quarter after debt installments. → Berkshire Boosts Its Bet: This AI Hyperscaler Is Now a Top-3 Holding Meldgaard said the company has distributed $15.10 per share in dividends since 2023, totaling $1.5 billion. Over the same period, Torm expanded its fleet from 78 vessels at the end of 2022 to 97 vessels at the end of the second quarter. The company raised its full-year 2026 outlook, citing sustained freight-market strength and increased visibility into contracted earnings. Torm now expects full-year TCE earnings of $1.4 billion to $1.6 billion, compared with prior guidance of $1.15 billion to $1.45 billion. New TCE midpoint: $1.5 billion, up from $1.3 billion. New EBITDA guidance: $1 billion to $1.2 billion. Previous EBITDA guidance: $800 million to $1.1 billion. Remaining open days: 10,271, representing 30% of total days. Torm said third-quarter bookings secured to date averaged $38,600 per day across vessel classes. Management said the reduced number of open days narrows the potential impact of freight-rate volatility on the company’s full-year result. Torm continued to invest in fleet renewal during the quarter, establishing a phased pipeline of resale and newbuilding vessel deliveries scheduled from the first quarter of 2027 through 2029, with potential deliveries extending into 2030. Meldgaard said rising secondhand vessel prices have made newbuildings relatively more attractive. During the question-and-answer session, Meldgaard said the company has considered accelerating sales of older vessels given elevated secondhand asset prices. However, he said Torm compares the net present value of a potential sale with expected earnings through a vessel’s useful life, and that analysis has not indicated a need to accelerate divestitures. Regarding the company’s newbuilding focus on MR tankers, Meldgaard said Torm does not favor a particular vessel category but instead evaluates asset costs and expected cash flows. He said MR investments had offered the most attractive expected returns relative to alternatives at the time of the decisions. Broker valuation of the fleet rose to approximately $4.1 billion at quarter-end, while net asset value increased to $3.7 billion. Net interest-bearing debt declined to $715 million from $894 million at the end of the first quarter, and the net loan-to-value ratio improved to 22.4%. The company had $237 million of borrowings maturing over the next 12 months. Balle said Torm generally seeks about 50% leverage when financing vessels, describing that level as a preferred balance between flexibility, funding costs and maturity structures. Management said that reduced oil volumes from the Strait of Hormuz disruption have been offset in part by longer routes, rerouting and shuttle operations, which have increased vessel utilization. Torm said oil flows improved from roughly 17% below pre-conflict levels in April and May to around 10% below by July during a temporary ceasefire period, before renewed hostilities again disrupted trade. Meldgaard said more than 30 VLCCs and around 14 LR2s were involved in dedicated shuttle operations and ship-to-ship transfers. He said a full restoration of pre-closure export volumes through such operations could require two to three times more VLCCs and more than three times the current number of LR2s. Torm also cited a shift of LR2 vessels from clean petroleum product transportation into crude transportation. By the end of July, approximately 70 fewer LR2s were available for clean petroleum product trades than at the start of the year, management said, reducing effective clean-product capacity by about 5% despite similar nominal fleet growth. During the call, Meldgaard said the weaker relative performance of MR vessels reflected reduced volumes available for marginal refinery and arbitrage trades. He said greater crude availability and refinery activity would likely be needed before those additional MR cargo opportunities increase. Management said it remains constructive on the coming months for product tankers, while acknowledging uncertainty around the Strait of Hormuz, the Red Sea, the Panama Canal and other trade chokepoints. Meldgaard said either a resolution of the current disruption or an expansion of regional oil-shuttle operations could support product tanker demand. Torm A/S (NASDAQ: TRMD) is an international shipping company specializing in the transportation of refined petroleum products. The firm owns and operates a modern fleet of product tankers, including both Handysize and MR vessels, which are designed to carry a broad range of clean petroleum cargoes such as gasoline, jet fuel and diesel. Torm's core business revolves around voyage and time-charter contracts with major oil companies, trading houses and other energy sector clients around the world. The company's fleet is deployed on global trade routes, with particular focus on major refining and consumption regions in Europe, North America and Asia. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Torm Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record second-quarter performance driven by exceptionally strong freight markets resulting from heightened geopolitical tensions in the Middle East and global trade flow disruptions. Leveraged the 'One TORM' integrated operating model to optimize fleet deployment and capture market opportunities, resulting in MR fleet earnings that outperformed the peer average by over USD 200 million from 2023-2025. Shifted fleet renewal strategy toward newbuildings and resales as secondhand vessel prices increased, securing a phased delivery pipeline from 2027 through 2029 to maintain a modern fleet profile. Capitalized on significant market inefficiencies, such as the closure of the Strait of Hormuz, which increased voyage distances and reduced effective fleet availability despite lower overall oil volumes. Observed a 'dirty-up' trend where approximately 70 LR2 vessels shifted from clean product to crude transportation, effectively reducing clean petroleum product (CPP) capacity by 5% despite nominal fleet growth. Maintained a disciplined capital allocation framework that balances aggressive fleet expansion with significant shareholder distributions, totaling USD 1.5 billion in dividends since 2023. Identified a structural reset in the tanker market where sanctions and security risks are creating long-term inefficiencies, suggesting that even a reopening of trade routes would require a lengthy rebalancing period. Increased full-year 2026 TCE guidance to a range of USD 1.4 billion to USD 1.6 billion, reflecting sustained strength in freight rates and increased earnings visibility with 70% of days already covered. Expects the 'oil bridge' shuttle operations in the Middle East to expand as producers seek to control their own destiny, potentially requiring three times more LR2 vessels than currently employed to restore pre-closure volumes. Anticipates that global inventory replenishment could add 1% to 2% to trade volumes over the next 12 months as strategic and commercial stocks are rebuilt following recent depletions. Projects limited effective fleet growth over the next several years due to an aging global fleet and the fact that 60% of sanctioned vessels are over 20 years old and unlikely to return to mainstream trading. Assumes continued high operational leverage where incremental revenue converts nearly 1:1 into EBITDA due to a largely fixed base cost structure. Reported a single voyage extension of over 30 days for the TORM Innovation due to rerouting around the Cape of Good Hope, illustrating how geopolitical events remove effective supply from the market. Noted that 1 in 4 vessels in the combined LR2 and Aframax segments are currently subject to international sanctions, further tightening the pool of available modern tonnage. Maintains a robust balance sheet with a net loan-to-value ratio of 22.4%, providing the financial flexibility to fund a growing newbuilding pipeline while sustaining high dividend payouts. Highlighted that current market volatility reinforces the need for commercial agility, as freight rates can move sharply month-to-month based on shifting energy flows and security concerns. Management stated they have considered accelerating sales but currently find the Net Present Value (NPV) of continued operation until the end of useful life to be more attractive than current sale prices. Confirmed there are no immediate plans to accelerate divestitures based on current internal earnings estimates. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Explained that MR rates have been more consistent because global inventory depletion has reduced the 'marginal' or arbitrage trades that typically drive MR spikes. Suggested a 'catch-up' for MRs may occur once crude volumes normalize and refineries increase runs beyond immediate daily consumption needs. Estimated that shuttle volumes have grown from 1 million barrels per day in May to 7 million barrels (6m crude, 1m CPP) currently as producers bypass the Strait of Hormuz. Noted that while this trend is currently dominated by crude, a similar strategic shift for clean products is expected as producers look to normalize refinery operations. Clarified that the decision to order MRs was based strictly on the best expected cash flow relative to asset cost and delivery timing at the time of investment. Indicated that the company remains segment-agnostic and would invest in LR1s or LR2s if the relative economics became more favorable. Confirmed that new vessels will typically be financed at a 50% leverage ratio, which management considers a 'sweet spot' for maintaining low margins and long funding structures. Emphasized that current balance sheet strength allows for this growth without compromising the dividend policy.

This article first appeared on GuruFocus. TCE Earnings: USD512 million in Q2 2026, more than doubling from USD208 million in the same period last year. EBITDA: USD416 million, up from USD127 million in Q2 2025. Net Profit: USD338 million, compared to USD59 million in Q2 2025. Earnings Per Share (EPS): USD3.31 for the quarter. Average TCE Rate: USD59,300 per day fleet-wide, more than double the prior-year quarter. LR2 Vessel Earnings: Approximately USD67,000 per day. LR1 and MR Vessel Earnings: Both generating just above USD57,000 per day. Operating Expenses: USD8,315 per day, with increases driven by higher crew change expenses and consumable costs. Interim Dividend: USD2.4 per share, totaling approximately USD246 million. Net Interest-Bearing Debt: Decreased to USD715 million from USD894 million at the end of Q1. Net Loan-to-Value Ratio: Improved to 2.4%. Fleet Size: 97 vessels at quarter end. Full-Year 2026 TCE Guidance: Increased to USD1.4 billion to USD1.6 billion. Full-Year 2026 EBITDA Guidance: Increased to USD1 billion to USD1.2 billion. Warning! GuruFocus has detected 7 Warning Sign with TRMD. Is TRMD fairly valued? Test your thesis with our free DCF calculator. Release Date: August 26, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record Q2 2026 financial performance with TCE earnings of USD512 million, EBITDA of USD416 million, and net profit of USD338 million, more than doubling year-over-year. Strong market positioning with fleet-wide average TCE rates of USD59,300 per day, significantly above historical averages. Increased full-year 2026 guidance to TCE earnings of USD1.4-1.6 billion and EBITDA of USD1.0-1.2 billion, reflecting high earnings visibility with 30% of days remaining open. Robust balance sheet with net loan-to-value ratio improved to 2.4% and net interest-bearing debt reduced to USD715 million, providing financial flexibility. Commitment to shareholder returns with an interim dividend of USD2.4 per share (total USD246 million), distributing all free cash flow after debt installments. Strategic fleet renewal through newbuilding and resale investments, with deliveries scheduled from 2027 to 2029, ensuring a modern and efficient fleet. Operational excellence demonstrated by the One TORM platform, which generated over USD200 million in additional TCE earnings compared to peers from 2023-2025. Dependence on geopolitical tensions and disruptions, such as the Strait of Hormuz closure, which are unpredictable and could reverse, leading to market volatility. MR segment performance lags behind LR2s due to reduced crude availability and refinery runs, limiting spillover trades and potentially affecting earnings. Rising operating expenses, with daily opex increasing to USD8,315 per day due to higher crew change and consumable costs, pressuring margins. Potential oversupply risk from newbuilding orders, especially in LR2 and Aframax segments, which could lead to future fleet growth and lower rates. Uncertainty around the reopening of the Strait of Hormuz and normalization of trade flows, which could lead to a sudden drop in freight rates and earnings. High asset values and secondhand prices may limit attractive divestment opportunities, reducing potential capital gains from fleet sales. Geopolitical risks, including sanctions and security threats, could disrupt operations and increase costs, impacting financial performance. Q: Jacob, you spent a lot of time talking about the justification for the newbuildings. Looking at it from the other side, it looks like roughly 30% of the fleet almost is 15 years or older. You have these incredible prices for secondhand vessels, including older tonnage at present. Have you considered an acceleration of maybe some divestitures to lock in some of these elevated prices on the resale side? A: Jacob Meldgaard, CEO: We have considered that. What we have found so far is that when we take the NPV of a potential sale of any of our assets versus a conservative estimate of what we will be earning until our usual life, that calculation will detail whether we do this or not. I'm not seeing any signs that we should accelerate based on that calculation. Q: The MRs had a nice little spike when the conflict broke out in the Middle East, but they've since normalized back to long-term averages. Is there any other difference? Is it just a trade flow amount of products leading the Middle East? And is there a catch-up trade to the MRs that you foresee once there is some return on normalization in global trade flows? A: Jacob Meldgaard, CEO: Every day, we are depleting inventory globally. The crude oil and product being moved is obviously lower volumes than before the effective closure of the Strait of Hormuz. Crude is definitely moving to a higher degree and arriving at the refinery side. But the spillover trades for the MRs to pick up are simply not occurring as often in an environment where there aren't enough cargoes. As long as we're in this environment where there isn't enough crude to meet daily consumption, the spillover trades from the refinery side will be less. You need to see more volumes of crude that meet or exceed daily consumption before refineries and arbitrage phases really start to reopen so that the MRs can come in. Q: How important are the trading inefficiencies behind the recent rebound in LR2 rates versus cargo flows? A: Jacob Meldgaard, CEO: There are two things on the supply side. We saw 70 fewer LR2s today, proving that the order book story was not the total story. Volumes have kept coming down because of disruptions, especially in the Middle East, with long-haul LR2 cargoes like diesel from Middle East to Europe not moving. Effective supply of clean trading LR2s has been coming down, keeping the market at bay. Now, with the inefficiencies, you only need a little more volume, like ship-to-ship transfers, to create a stronger dent. Middle Eastern states are contemplating expanding this "oil bridge" as a strategic response to the closure, which would be beneficial for LR2s. Q: You're seeing the Chinese ramping up refining runs. So hopefully, that will add some volumes going into the fall. How comfortable are you and how bullish are you on the next few months of products? A: Jacob Meldgaard, CEO: We are constructive around it. Historically, we've probably never seen more choke points. Our thinking is that most of these choke points will either remain as they are or be positive for product tankers. Regarding the Strait of Hormuz, I don't think the current status quo is how it will stay. Either we will find a solution, or you will see this oil bridge expanded. Both those scenarios are positive in our opinion for product tankers. Q: You're sort of doubling down on the MRs here. Can you talk a bit through your reasoning on doing MR newbuilds as opposed to LR2s? A: Jacob Meldgaard, CEO: We are not in love with any particular segment. The way we come to investment decisions is by looking at the cost of an asset and our expected cash flow from that investment. In the second and into the third quarter, it has been the better choice to place our money on the MR based on prices, delivery, and specification. That doesn't mean we could not do LR1s or LR2s at any time, but currently, MRs have been the best choice for our shareholders. Q: You haven't disclosed any prices on the new fixed plus 2 vessels. But can you talk a bit about what we should expect in terms of financial leverage as a percentage? A: Kim Balle, CFO: Pretty standard on that currently. We would normally finance our business at 50% leverage. That's a nice sweet spot. The situation we are in gives us ample flexibility with very low margins and fairly long funding structures. We think this is a very good place to be. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by the 'One TORM' platform, which management claims provides a quantifiable advantage in reacting to spot price volatility compared to peers. The closure of the Strait of Hormuz created the largest oil supply disruption in history, constraining 20% of global daily oil consumption and driving unprecedented freight rates. Management attributes elevated margins to abnormal trade flows and structural inefficiencies that benefit both tanker companies and refining customers. A significant disconnect has emerged between nominal fleet growth and effective capacity due to extensive vessel sanctioning, particularly in the Aframax and LR2 segments. The migration of over 50 LR2 vessels into crude trading ('dirty-ups') further tightened clean petroleum product capacity by approximately 4%. Fleet renewal remains a core strategy, with the company acquiring younger secondhand vessels and MR resales to enhance flexibility while divesting older tonnage. Operational excellence is supported by a centralized management platform that coordinates decision-making and maintains higher utilization than the peer average. Full-year 2026 TCE guidance was upgraded to USD 1.15 billion - USD 1.45 billion, reflecting exceptionally strong Q2 coverage at rates exceeding USD 70,000 per day. Management views current conditions as a 'structural market reset' rather than a temporary spike, expecting friction and volatility to persist even after the Strait of Hormuz reopens. Future performance assumes a multi-year process for rebuilding depleted global strategic and commercial inventories, supported by higher production from the UAE. The company is utilizing a mix of short-term spot exposure, 1-3 year time charters, and forward derivatives to capture value while maintaining operational flexibility. Guidance for uncovered days remains sensitive to the forward derivatives market, geopolitical developments, and potential shifts in global trade patterns. Approximately 1 in 4 vessels in the Aframax/LR2 segment are currently under U.S., EU, or U.K. sanctions, limiting the return of older ships to the mainstream market. The closure of the Strait of Hormuz stranded roughly 3% of the global product tanker fleet and 6% of the crude fleet, causing significant vessel dislocation. Working capital increased by approximately USD 30 million during the quarter due to the combination of high freight rates and elevated bunker prices. Safety remains the primary operational risk, with management maintaining a 'safety-first' approach for vessels currently located inside the Persian Gulf. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The 58% payout ratio was lower than historical norms due to a USD 30 million buildup in net working capital caused by higher freight rates and bunker prices. Management expects a 'catch-up' in future quarters as liquidity from March bookings is realized, potentially pushing the ratio back toward the 80-85% range. Management chose resales over newbuildings or older secondhand vessels because they offered a better 'net present value' and earlier delivery (2027-2028). The investment meets internal risk-adjusted return hurdles, with management noting that current secondhand prices for older ships have 'crept up' significantly. Current rate softening is attributed to end-users 'cooling their jets' in hopes of a Strait reopening, which has temporarily narrowed arbitrage margins. Management believes if the Strait remains closed, the call on Western products will inevitably increase, widening margins and driving rates back up.

HELLERUP, Denmark, May 13, 2026 /PRNewswire/ -- INSIDE INFORMATION "TORM delivered a strong quarter supported by high freight rates, consistent execution, and our One TORM platform," said Jacob Meldgaard, adding: "Rates rose to record levels in April, prompting an upward revision of our full-year guidance while continuing to monitor global developments. We also invested selectively in fleet renewal, including six resale vessels, reflecting our long-term view of the market." Financial Results In the first quarter of 2026, TORM (NASDAQ: TRMD) (NASDAQ: TRMD-A) generated time charter equivalent earnings (TCE) of USD 286m (2025, same period: USD 214m). EBITDA for the Group totaled USD 201m including unrealized losses on financial instruments of USD 5m (2025, same period: USD 136m including unrealized losses on financial instruments of USD 2m), while net profit for the period amounted to USD 122m (2025, same period: USD 63m), reflecting a continued strong operational development. Freight rates entered 2026 on a firm footing and strengthened further toward the end of the quarter, with gains led by the crude tanker segment amid escalating geopolitical tensions. The conflict involving the US, Israel, and Iran, and the subsequent closure of the Strait of Hormuz, materially altered market conditions as the loss of Middle Eastern exports prompted a rapid shift toward replacement barrels from the US, supporting tanker demand and freight rates. In this market, TORM achieved fleet-wide TCE rates of USD/day 34,937 on average (2025, same period: USD/day 26,807), and available earning days increased to 8,325 (2025, same period: 8,061). Our vessel class LR2 achieved TCE rates of USD/day 41,062, the LR1 vessels achieved TCE rates of USD/day 34,903, and the MR vessels achieved TCE rates of USD/day 32,946. For the first quarter of 2026, Return on Invested Capital amounted to 18.0% (2025, same period: 10.3%) reflecting the higher freight rates compared to the levels seen a year ago, and basic EPS amounted to USD 1.21 (2025, same period: USD 0.64). Key Figures *Excludes unrealized gains/losses on derivatives. Business Highlights In the first quarter of 2026, TORM took delivery of two 2016-built LR2 vessels and one 2018-built MR vessel, now renamed TORM Helga, TORM Hedwig and TORM Fortune. Further, TORM delivered the 2008-built LR2 vessel TORM Maren to its new owner. Also, TORM entered into an agreement to purchase two 2015-built MR vessels with delivery in the second quarter of 2026. The vessels will be named TORM Dehradun and TORM Dapitan. Further, after the end of the quarter, TORM has purchased a total of six MR resales, with the first two vessels scheduled for delivery already in the first quarter of 2027, followed by two additional deliveries in 2027 and the remaining two in 2028. Thus, after completion of the deliveries, TORM's fleet size will increase to 103 vessels. Based on broker valuations, TORM's fleet had a market value of USD 3,619m (2025, same date: USD 3,112m). Compared to broker valuations as of 31 December 2025, the market value of the fleet increased by USD 308m when adjusted for acquired and sold vessels in the first quarter of 2026. TORM's consolidated Net Asset Value (NAV) was USD 3,036m as of 31 March 2026 (2025, same date: USD 2,511m). Distribution of Dividend TORM's Board of Directors has today approved an interim dividend for the first quarter of 2026 of USD 0.70 per share to be paid to the shareholders corresponding to an expected total dividend payment of USD 72m and reflects the Distribution Policy. The distribution for the quarter is equivalent to 58% of net profit. The payment date is 11 June 2026 to all shareholders on record as of 28 May 2026, and the ex-dividend date is 27 May 2026 for the shares listed on Nasdaq OMX Copenhagen and 28 May 2026 for the shares listed on Nasdaq New York. Financial Outlook 2026 - INSIDE INFORMATION As of 07 May 2026, TORM had covered 57% of the Q2 2026 earning days at an average rate of USD/day 71,494. By vessel class, coverage stood at 64% for LR2s at USD/day 70,764, 60% for LR1s at USD/day 61,774 and 54% for MRs at USD/day 73,485. For the full year 2025 42% of the earning days have been fixed at an average rate of USD/day 50,044. The remaining 58% of the earning days in 2026 - equivalent to 20,031 days - remain open and thus subject to market fluctuations. A change in freight rates of USD/day 1,000 will, all else equal, impact EBITDA by approximately USD 20m. Based on the earnings realized this far as well as the outlook for the remaining part of the year, TORM upgrades its full-year guidance. For the full year 2026, TCE earnings are now expected to exceed the previous guidance and are now estimated to be USD 1,150-1,450m (previous guidance USD 850-1,250m), EBITDA for the full year 2026 is expected to be in the range of USD 800-1,100m (previous guidance USD 500-900m) based on the current fleet size. Webcast and Conference Call TORM will host a webcast and conference call for investors and analysts today, Wednesday 13 May at 10:00 am Eastern Time / 04:00 pm Central European Time. Participants joining webcast:Please access the webcast here Participants joining by telephone:Please call one of the dial-in numbers below at least ten minutes prior to the start (Conference ID: 5986716):Denmark: +45 32 74 07 10United Kingdom: +44 20 3481 4247United States: +1 (646) 307 1963 ContactsMikael Bo Larsen, Head of Investor RelationsTel.: +45 5143 8002 About TORM TORM is one of the world's leading carriers of refined oil products. TORM operates a fleet of product tanker vessels with a strong commitment to safety. environmental responsibility and customer service. TORM was founded in 1889 and conducts business worldwide. TORM's shares are listed on Nasdaq in Copenhagen and on Nasdaq in New York (NASDAQ: TRMD-A) (NASDAQ: TRMD) (ISIN: GB00BZ3CNK81). For further information. Please visit www.torm.com. Safe Harbor Statement as to the Future Matters discussed in this release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. 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 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. Words such as, but not limited to, "expects," "anticipates," "intends," "plans," "believes," "estimates," "targets," "projects," "forecasts," "potential," "continue," "possible," "likely," "may," "could," "should" and similar expressions or phrases may identify forward-looking statements. The forward-looking statements in this release are based upon various assumptions, many of which are, in turn, based 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 that 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, but are not limited to, our future operating or financial results; changes in governmental rules and regulations or actions taken by regulatory authorities; inflationary pressure and central bank policies intended to combat overall inflation and rising interest rates and foreign exchange rates; general domestic and international political conditions or events, including "trade wars" and the war between Russia and Ukraine, the conflicts in the Middle East; international sanctions against Russian oil and oil products; changes in economic and competitive conditions affecting our business, including market fluctuations in charter rates and charterers' abilities to perform under existing time charters; changes in the supply and demand for vessels comparable to ours and the number of new buildings under construction; the highly cyclical nature of the industry that we operate in; the loss of a large customer or significant business relationship; changes in worldwide oil production and consumption and storage; risks associated with any future vessel construction; our expectations regarding the availability of vessel acquisitions and our ability to complete acquisition transactions planned; availability of skilled crew members other employees and the related labor costs; work stoppages or other labor disruptions by our employees or the employees of other companies in related industries; effects of new products and new technology in our industry; new environmental regulations and restrictions; the impact of an interruption in or failure of our information technology and communications systems, including the impact of cyber-attacks, upon our ability to operate; potential conflicts of interest involving members of our Board of Directors and Senior Management; the failure of counterparties to fully perform their contracts with us; changes in credit risk with respect to our counterparties on contracts; adequacy of insurance coverage; our ability to obtain indemnities from customers; changes in laws, treaties or regulations; our incorporation under the laws of England and Wales and the different rights to relief that may be available compared to other countries, including the United States; government requisition of our vessels during a period of war or emergency; the arrest of our vessels by maritime claimants; any further changes in U.S. trade policy that could trigger retaliatory actions by the affected countries; the impact of the U.S. presidential and congressional election results affecting the economy, future government laws and regulations and trade policy matters, such as the imposition of tariffs and other import restrictions; potential disruption of shipping routes due to accidents, climate-related incidents, adverse weather and natural disasters, environmental factors, political events, public health threats, acts by terrorists or acts of piracy on ocean-going vessels; damage to storage and receiving facilities; potential liability from future litigation and potential costs due to environmental damage and vessel collisions; and the length and number of off-hire periods and dependence on third-party managers. In the light of these risks and uncertainties, undue reliance should not be placed on forward-looking statements contained in this release because they are statements about events that are not certain to occur as described or at all. These forward-looking statements are not guarantees of our future performance, and actual results and future developments may vary materially from those projected in the forward-looking statements. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to release publicly any revisions or updates to these forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events. Please see TORM's filings with the U.S. Securities and Exchange Commission for a more complete discussion of certain of these and other risks and uncertainties. The information set forth herein speaks only as of the date hereof, and the Company disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication. This information was brought to you by Cision http://news.cision.com https://news.cision.com/torm-plc/r/torm-plc-q1-2026-results--dividend-distribution--and-financial-outlook-2026,c4347665 The following files are available for download:   View original content:https://www.prnewswire.com/news-releases/torm-plc-q1-2026-results-dividend-distribution-and-financial-outlook-2026-302770620.html

TORM (NASDAQ:TRMD) held its first-quarter earnings conference call on Wednesday. Below is the complete transcript from the call. This content is powered by Benzinga APIs. For comprehensive financial data and transcripts, visit https://www.benzinga.com/apis/. Access the full call at https://events.q4inc.com/attendee/835507019 TORM reported a strong first quarter for 2026, with TCE revenue of $286 million and a net profit of $122 million, benefiting from firm freight rates and operational efficiencies. The company increased its full-year guidance to TCE of $1.15 to $1.45 billion, driven by positive market conditions and solid earnings visibility. TORM continued its fleet renewal strategy by acquiring six MR resale vessels, enhancing fleet flexibility and future earnings capacity. Management highlighted the impact of geopolitical factors, including the closure of the Strait of Hormuz, which significantly disrupted global energy flows and elevated tanker rates. The company declared a dividend payout ratio of 58%, impacted by a working capital build-up due to increased freight rates and bunker prices. Angela (Conference Operator) thank you for standing by. My name is Angela and I will be your conference operator today. At this time I would like to welcome everyone to the TORM first quarter 2026 conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during that time, please simply press STAR followed by the number one on your telephone keypad. If you would like to withdraw your question, press STAR one again. Thank you. I would now like to turn the call over to Mr. Jacob Melgard, CEO. You may begin. Jacob Melgard (CEO) Thank you and welcome to everyone joining us today. We started 2026 with a very strong first quarter, delivering results that demonstrate both the earnings power of our platform and the strength of our execution in a supportive freight market. This morning we released our Q1 2026 results and we are pleased with the performance. However, before I go into the details of the quarter, I would like to take a step back and briefly talk about TORM and the foundation that underpins these results then continues to differentiate us in the market. Again, our performance was driven by a combination of strong freight rates, disciplined execution and a one TORM platform. While we remain attentive to global developments, we continue to align ourselves with market changes and believe we have a unique ability to react quickly to movements in spot prices. This is something we are often asked about. The answer is that it represents a quantifiable advantage over our peers. What we refer to as the one TOM advantage. It is now embedded in the way we operate and is a capability our competitors would undoubtedly like to replicate. Importantly, this advantage is the result of a journey over many years journey that continues to evolve. We are able to track this across a range of performance indicators. For example, over a three year period, our MR Fleet generated TCE revenue that exceeded the peer average by approximately US$200million, reflecting the strength and efficiency of our operating model through higher utilization, disciplined cost control and strong commercial execution. This culture of operational excellence is supported by our centralized management platform that coordinates and accelerates our decision making. This is good news for our investors because it means we are now extremely well placed for the complex landscape ahead and we remain confident that the shifting sense of geopolitical uncertainty continue to to present opportunities for us. Thus, it's no surprise to us that TORM Share are currently in focus among the investment community as a route to unlock value from this uncertainty. And now please to slide number four. As always, I'll start with the key financial outcomes for the quarter to give you a clear picture of how the business is developing. During the first quarter we delivered TCE of US$286million, representing a clear continuation of the positive earnings trajectory seen over recent quarters. This was significantly higher than the same quarter last year, driven by consistently firm freight rates throughout the period, which strengthened further towards quarter end. These conditions reflect a value chain currently characterized by abnormal trade flows and structural inefficiencies, resulting in elevated margins not only for tanker companies like us, but also for our customers who are capturing strong profitability across the trading and refining segments. That such dynamic performance translated into an EBITDA of US$201million and a net profit of US$1,122 million, reflecting both the strength of the market environment and our ability to convert rates into earnings through disciplined commercial execution and operational leverage, supported by the continued strength we see across our markets and the solid momentum entering the remainder of the year. We are therefore increasing our full year guidance to US$1.15 to 1.45 billion, underscoring our confidence in sustaining profitable growth. Also, we continued active fleet renewal, adding younger secondhand vessels and committing further acquisitions while divesting older tonnage after quarter end. And we also agreed to acquire 6 MR Resales with expected delivery of 4 in 2027 and 2 in 2028. These acquisitions further enhance fleet flexibility and earnings capacity while preserving a prudent age profile. As of quarter end, our fleet consisted of 95 vessels. Once all the before mentioned transactions are completed, the fleet will increase to 103 vessels on a fully delivered basis. Please turn to slide 5 before moving to the broader market, let me briefly address our current operating status. Safety remains our highest priority. We currently have one vessel inside the Persian Gulf and I'm pleased to say that the crew are doing well, morale is high and provisions are not an issue. As we will describe on this call, the market impact has been significant, tightening effective supply and contributing to the sharp increase in freight rates. Bunker prices have also moved higher. Although availability remains secure throughout this period, our approach has been clear and unchanged. We take a safety first approach in all operating decisions. Please turn to Slide 7. Following a strong close to 2025, product tanker markets entered the first quarter of 2026 with rates stabilizing at levels well above historical averages. This strength was supported by broader momentum in the crude tanker market which benefited from record volumes of cargo underwater as well as a return of Venezuelan exports to the compliant fleet and generally more cautious use of sanctioned vessels globally. And on top of this, the development was further Supported by the consolidation of the ownership in the VLCC segment, the outbreak of the U S. Israel Iran war in late February and the subsequent closure of the Strait of Hormuz marked a further and unprecedented escalation in tangle rates. This is clearly reflected in our commercial performance with Q2 average bookings to date above 70,000 USD per day across vessel sizes. Taken together, these dynamics have created one of the strongest cross segment market environments we've seen in several years, underpinned by both structural and event driven factors and kindly turn to the next slide. Turn to slide 8 please. The closure of the Strait of Hormuz had an immediate and profound impact on global energy flows. Approximately 14% of global clean petroleum product volumes and around 30% of crude oil movements that would normally transit the Strait was certainly constrained. Combined, this correspond to approximately 20% of global daily oil production consumption. In scale and immediacy, this represents the largest oil supply disruption the market has ever experienced. On the clean product side, the impact was uneven. naphtha and jet fuel were disproportionately affected, reflecting the Persian Gulf's central role in global exports, accounting for 37% of global naphtha exports and 21% of jet fuel. Under normal conditions, diesel and gasoline were relatively less exposed. As the next slide will show, only a fraction of these lost volumes have been replaced so far, underscoring how structural this shock has been. Please turn to slide 9. In crude markets, part of the lost Persian Gulf supply has been mitigated through pipeline redirection from Saudi Arabia and the UAE alongside increased flows from the Atlantic basin. However, reduced crude availability at Asian refineries has forced meaningful run costs, which in turn has sharply reduced clean petroleum product exports from the region. By the end of April, global clean petroleum product trade was down by roughly 16% as incremental supply from Western markets booked insufficient to offset the loss of Middle Eastern and Asian export crude oil trades saw a decline of similar magnitude. Despite this contraction in traded volumes, product tanker rates remained elevated. Some of this reflects longer replacement voyages and urgency premiums. But the more important explanation lies on the tonnage supply side, which I'll address on the next slide. And here please turn to the next slide to slide 10. The closure of the Strait of Hormuz caused significant vessel dislocation, with more than 200 crude and product centers stranded inside the Persian Gulf. This equates to roughly 3% of the global product Sancter fleet and 6% of the crude fleet. As vessels were rerouted toward regions where with replacement volumes, we saw higher ballast Ratios and materially increased inefficiencies. In simple terms, ships spending more time sailing empty to reach the next Cargo in the Mr. Segment increased east to west balloting was partially offset by stronger west to east cargo flows as Asian product supply tightened. At the same time, we saw an unprecedented shift of LR2 vessels into crude trading, the so called dirty ops. By the end of April, the number of LR2s trading clean products had fallen by more than 50 vessels compared with the start of the year despite the delivery of 27 new buildings. As a result, effective CPP trading fee capacity declined by around 4% even before accounting for the vessels stranded in the Gulf. Please turn to slide 11. It is however important to recognize that this migration of LR2s into crude trading began well before the Strait of Hormuz closure. Since 2025, the Aframax and LR2 segments have faced extensive vessel sanctioning largely linked to Russian crude trades. In 2025 alone, more than 200 Aframax and other two vessels were sanctioned. This has created a growing disconnect between new building deliveries and effective fleet growth. Since the start of 2025, nominal product tanker capacity is up 8%. Yet the capacity actually trading clean today is around 4% lower. The scale of sanctions is noticeable. One in four vessels in the combined airframe max LR2 segment is currently under US, EU or UK sanctions. This comes on top of an already balanced order book due to the high share of older vessels. With 60% of the sanction fleet older than 20 years. The prospect of these ships returning to the mainstream clean market even if sanctions were lifted appears increasingly limited. And now turn to slide 12. Let me frame this slide with one central point. What we are facing is not a return to normal, but a structural market reset. First on timing. The duration and persistence of the closure of this Strait of Hormuz remain uncertain despite recent diplomatic attempts to end the conflict. Currently three tango transit through the Strait of Hormuz remain more than 95% below the pre conflict levels. We don't know when transit will resume. We're not speculating on the timing. That uncertainty is real and we are managing the business responsibly with that reality in mind. What is equally important however, is what happens after reopening. When transits resume, the market does not simply switch back to where it was. There will be tarnished dislocation and significant vessel repositioning as assets re enter trade lanes that have been disrupted for an extended period. That creates friction, inefficiency and volatility. Conditions where agile operators outperform. At the same time, depleted strategic and commercial inventories will need to be rebuilt. A multi year process that supports sustained activity rather than a temporary outlet. The UAE's recent exit from OPEC enables higher production, which is likely to accelerate the replenishment of global oil stocks. It's also important to remember that tanker market strength was already evident before the Strait of Hormuz closure. Those fundamentals were paused, not erased. From our perspective, the key is readiness. We have deliberately built an agile business platform that allows us to react immediately so when the trade opens, we are well positioned to benefit from the market. Reset Please turn to Slide 13 now to conclude on the market the tanker industry today is operating in an environment shaped by an unusually large and growing number of geopolitical factors. Trade routes, cargo flows, sanctions, regimes and security considerations are all contributing to greater market inefficiency. Importantly, it's not new, but it has intensified. Since 2022. The number of geopolitical variables we are navigating has increased significantly, adding friction and complexity to global energy transportation. For the industry, inefficiency translates into longer voyages, dislocated turns and volatility. For well positioned operators like us, it also creates opportunity, provided you have the scale, agility and discipline to navigate it effectively. And with that, I'll now hand it over to Kim who will walk us through the numbers. Thank you Jacob. Kim Now Please turn to Slide 15 and let me walk you through some of the drivers behind our performance. The product tanker market entered 2026 on a strong footing and this momentum was sustained throughout the first quarter, supporting another solid set of results. For the first quarter we delivered TCE of US$286million, translating into EBITDA of US$201million and a net profit of US$122million. These results reflect firm freight markets across the quarter and our continued ability to consistently capture this across the field. On a feed wide basis, average TCE was US$34937 per day and by segment LR2 earnings exceeded US$41000 per day. MR has earned just under 33,000 per day, while LR1s came in around US$35000 per day. That is up significantly compared to the freight rates we had a year ago. Our TCE earnings were affected by timing issues relating to IFRS 15. Under IFRS 15, we recognize freight revenue from when cargo is loaded until it is discharged, not from when the voyage is agreed and hence influenced by changes in balance patterns. It does not impact our underlying cash earnings or the economic performance of the vessels. Again, the realized earnings level highlight the continued strength of the underlying market, supported in part by very firm crude tanker rates, which again influenced product tanker dynamics positively. With that overview in place, let me turn to slide 16 where we break down earnings down in more detail and walk through the underlying drivers. This slide illustrates our quarterly earnings development since the first quarter of 2025 and what stands out very clearly is the step up we see in the most recent quarter. While the Q1 results we delivered a meaningful uplift in earnings, continuing and accelerating the positive trajectory we have seen over recent quarters. This reflects the strength of the freight market and confirms that the supportive market conditions are translating directly into financial performance. For the quarter we generated CCE of $286 million and EBITDA of US$211, making this our strongest quarterly result since the second quarter of 2024. It is a clear validation of both the market environment and our ability to capitalize on it. The primary driver was firm freight rates, supported by strong spillover from the crude tanker sector and continued geopolitical disruptions in the Middle east which have introduced additional inefficiencies into the market. Importantly, given the inherent operational leverage in our business model, incremental rate improvements translate efficiently into higher earnings. This sets out a solid foundation as we move through the remainder of the year. Please turn to Slide 17. On this slide, we show the quarterly development net profit alongside earnings and dividends per share. Starting with earnings, net profit increased to US$122million, corresponding to earnings per share of US$1.21. Turning to free cash flow generation and capital return, it is important to note that a combination of high freight rates and elevated bundle prices resulted in a net working capital increase of around 30 million during the quarter. Against this backdrop, the Board has declared a dividend of US$4.7 per share, equivalent to a payout ratio of 58%. This reflects the free cash flow generated after accounting for the working capital build. Absent to this effect, the implied payout ratio would have been in the range of 80 to 85%. We believe this once again demonstrates that our capital return framework strikes the right balance, remaining clear and disciplined while being firmly anchored in strong sustainable underlying cash earnings generation. And now please turn to slide 18. As shown on this slide, broker valuations for our fleet stood at 3.6 billion at the end of the quarter. This reflects a continued positive sentiment across the tanker asset market and results in an increase in our net asset value to US$3.1 billion. Importantly, average broker valuations for the fleet increased by 9.7% during the first quarter, with particularly strong appreciation seen in the LR2 and LR1 segments. This development is an acceleration of what we observed the previous quarter and further underlies both the improving market backdrop and the quality of our asset base. Turning to the center chart you you can see our net interest payment debt which now stands at 894 million and this corresponds to a net loan to value ratio of 25.1%, keeping us comfortably within the range we have maintained for many quarters. This highlights the strength of our conservative capital structure. Maintaining stable leverage at these levels provide us with significant financial flexibility allowing us to pursue value accretive opportunities as we have demonstrated this quarter, while at the same time preserving balance sheet resilience through market cycles. Finally, on the right side you see our debt maturity profile. We have US$287million in borrowings maturing over the next 12 months and beyond that, maturities are modest and well distributed across the subsequent years. Overall, our solid balance sheet positions us well to navigate current market conditions with confidence while preserving the ability to act decisively on attractive opportunities as they emerge. And now Please turn to slide 19 where I will walk you through our outlook for 2026. Based on the strong start to the year and the earnings visibility we now have in the near term, we are upgrading our full year 2026 guidance. For the full year we now expect TCE of US$1.15 to 1.45 billion, up from our previous guidance range from US$850 to 1,250 million. At the same time, we upgrade our ebitda guidance to US$800million to 1.1 billion compared with the previous US$500 to 900 million. Market conditions have reached exceptionally strong levels in the second quarter supported by tight tonnage balance and continued trade dislocations. As a result, we have already secured 57% of our earning days in Q2 at a feed wide average of TCE US$71,494 per day. A significant share of this quarter is therefore fixed at very attractive rate levels, providing a high degree of near term earnings visibility. This strong coverage gives us a very solid foundation for the year and reflects the positive traction we have seen across all metal segments. Thus, this upgrade reflects two main factors. First, the strong earnings performance delivered in the first quarter and second, the very strong coverage we have secured for the second quarter at rate levels that are unprecedented for the product tanker market. For the uncovered base. We have, as usual, used the forward derivatives market as a reference and as always, the updated guidance remains subject to market volatility, geopolitical developments and potential changes in trade patterns, particularly as we move into the second half of the year. That said, we believe our upgraded guidance properly reflects both the strengths of the current market backdrop and the visibility we have today. And with this, I will hand it back to the operator. OPERATOR Thank you. We will now begin the question and answer session. If you have dialed in and would like to ask a question, please press Star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press Star one again. If you are called upon to ask your question and are listening by a loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute. When and asking your question and your first question comes from the line of John Chappell with Evercore isi. Your line is now open. Kim Thank you. Good afternoon, Kim, I want to go back to the dividend slide. You mentioned it briefly, the 58% payout ratio, but would have been 83.5%. Can you remind us what that difference was? And then if it's associated with the new builds, how do we think about the payout ratio going forward? Is it closer to this 58 which was the lowest payout ratio since 3Q22, or does it return something to that 80 percentage range that it's been for much of the last three years? Hi John, thank you very much for that question. What I tried to communicate was that when we saw the market rate increase during during March, we will have days sales outstanding freight days outstanding of around, let's say 45 to 50 days. So meaning so we book the cargo the fixing, but we will get the liquidity those days later. So it means that we will not get liquidity in the same month of March, we will get that booking in April as an example. So in that sense we build up a networking capital and if you add the increase in bunker prices, that is the effect on our bunker inventory, that in itself, those two in itself equated to around US$30 million. And that was why I added it to the earning or sorry to the dividend we paid out and if you add that you will get to the 80 to 85%. So it has nothing to do per se with the resales that we bought. It is just a reflection of the networking capital buildup. When markets react as it did over one month and then over a Quarter end where we report, does it make sense? John Chappell (Equity Analyst) So does that mean that there's a catch up, so to speak, in the second quarter, assuming rates stabilize or maybe even pull back a little bit from the highs, is that net working capital then work in your favor? Whereas the second quarter or maybe some quarter in the second half, the ratio is well over the 80% to kind of make that timing even out. Kim Yeah, exactly. I think you used to think about it. So say that things were steady now throughout the next quarter. You would get it back. Would it increase for, would rating rates increase further? You would probably tie a bit more networking capital. Would it decrease, you would get it even more released. So that, that's, yeah, think about it. John Chappell (Equity Analyst) That's super important. Thank you for the clarification. And then Jacob, kind of strategic outlook, you talked about the opportunities that you have. You know, if there is a normalization. Also just thinking about the strategy, you obviously bought the resales. There's been a lot of time charter activity, especially in the bigger ships, LR2s. Are you still kind of fully exposed to the spot market or do you think there's some opportunities at some of these elevated levels and maybe some charters and traders reaching out for some term to get some fixed cash flows for one to five years? Jacob Melgard (CEO) Yeah, so we had done a few chatter outs one year, three year, we've done some forward cover for next year on derivatives when markets were, were a little hard here. That's an efficient way of us to sort of capture value, protect the level, but still have let's say the operational flexibility on our assets. So we've been doing, we've been doing that the way you describe it, of course, it's a trade off between as you can see, the elevated rate environment that we have currently and then, and then the forward projection. But, but we like to do a little of, of all in this, in this environment. So some a little shorter one year, some a little longer three years and some somewhat forward, you know, 2020, covering 2027 already now on some derivatives trades. John Chappell (Equity Analyst) Okay, one last one for me. Sorry if this is too many. Obviously the resales make sense in the framework of modernizing the fleet. You've been pretty active in some older vessels sales. And given the fact that older asset prices, at least on paper seem to be even higher, it was maybe a little surprising that some of those resales weren't offset with older vessel disposition. So is that just a function of trying to maintain as much leverage to the market as possible or is the liquidity in the second Hand market for older vessels. Maybe not as robust as it's been recently? Jacob Melgard (CEO) Oh, I think definitely it's robust. But we've simply just done. Yeah. Done simple math. We feel that our balance sheet is in pristine shape, as Kim alluded to. So I think we are. We are of the opinion that the asset base we have have longevity and optionality and also the way the market behaves with quite high volatility, it means that there can be attractive earnings in many scenarios that we look at going forward. I think it's going to be volatile and chubby. You know, in many ways we've seen that here over the first and second quarter. I think that will continue. But fundamentally we believe that this is offering a lot of opportunity for our platform. But we do evaluate exactly as you described, John. You know, what is the better sort of net present value that we will get selling an asset or keeping it with the rate environment that we predict. John Chappell (Equity Analyst) Understood. Thanks, Jacob. Thanks, Kim. But thank you. Yeah. OPERATOR Your next question comes from the line of road mortal with Clarkson Securities. Your line is now open. Rod Mortel Thank you. Hey guys, I wanted to follow up on the acquisition of the 6Mrs. I'm not sure if you talked about the price. You know, maybe you could talk about the price level versus let's say older ships. Right. That's probably how you thought about it. Resale value in 27 versus somewhat older and. Yeah, that's it. Jacob Melgard (CEO) The way that we have come to the decision of the purchase of the six resale Mrs. Is exactly as you point to that we evaluate what is the earning that we will be having on various assets, you know, in various age profiles in the coming years. We then also compare it. Basically you could say that three buckets that you could. That you could invest in if you are looking to make an investment. It would be existing ships on the water with, you know, whatever age profile that you would, you could dream up. It would be resales with relatively early delivery or it would be that you go to a shipyard and to complete new contracts. So new building contracts. And right now what we found was that we did find kind of a gap where we saw the market being attractive. From the pricing and timing of the delivery of these resales being better than paying, let's say, the same price for a deferred Delivery out in 3 years out compared to having a resale 3/4 out was just simply a better, more attractive solution for us. And also better than identifying vessels underwater where prices as also Jonathan pointed to have been creeping up as of late. So it's simple math that has driven us to that. This price point and delivery point is in our opinion the better of the three choices if you are looking at it. And we found that this one also meet our return criteria for making the. The risk adjusted return that we are looking for in any of our investments. Yeah, interesting. What kind of risk adjusted returns are you talking about? I mean, I understand it on your comments here. You basically are acquiring these ships, let's say probably less than 50 million. Right. Per ship. And then a five year old ship today is probably a similar level. Right. So you're arguing that you get more modern, better ships at the same price. Something like that. Right, yeah. And maybe you could tie it into the required Mr. Rate to get like a decent return on it. Sure, yeah. So I mean we don't disclose our forward thinking, but the way we model it exactly the way you more or less describe it, we would of course put in let's say financing our operating cost, etc. And at the end of the day we would then compare with our earning potential. And I think to say that in our modeling we probably look at about five years out and then we'll look at sort of a residual risk basis. Exactly what you also described what would be a five year old residual sort of market value at that point in time. And what I then described is that in the hurdle on that return on that invested capital is of course internal for us, but this way of making the investment exceeds our sort of hurdle for believing that that's a good investment. So we think it's a good investment for our shareholders and that is an asset that would be appreciated obviously by our customers at the time. Rod Mortel Yeah, understood. Yeah. You probably have a $60 million investment. You probably only need like 23,000 per day over time to get like a 10 to 12 return or something like that. Right. Anyway, shifting gears on the market, I wanted to hear your thoughts on the drivers here. Okay. Has been very, very strong start to Q2. Right. Maybe you could talk a little bit about the trade flow adjustments. Right. So you've seen refineries closing down obviously in the Middle east, but also in Asia. And now US Gulf has come up and ramped up exports and clearly adding to ton miles. But then again at the same time you've seen freight rates come off the boil, so to speak, recently. Maybe you can talk a bit about how you think rates will develop now in the short term. Do you think like there's more normalization the rates or could it final about them now? Jacob Melgard (CEO) Yeah. Okay. So as you point to then this sort of dislocation of the sourcing for many buyers had led to longer term. We've already discussed that. That also translated into higher margins for our customers. It translated into higher freight rates for ourselves and the ecosystem of transportation. And just recently we've seen that. I think our freight rates is driven by our customers and basically by how the arbitrages work. And you had a period where the arbitrage was tweaked, was wide open obviously leading to that when the Arab is open that customers in, let's say in Asia, Australia, East Africa, you know these areas that would normally be looking towards the Middle east for their supply, they were beating up cargoes that were available in the Western hemisphere. This has come off a little bit right now. There's been a period where our understanding is that the end users have been a little more reluctant. I think they've been looking at the situation in the straight of a movement sort of valuing, hey, you know, if we get cargo out there it's going to come faster and it's going to come cheaper. So maybe let's just cool the jets a little. So margins have come in less attractive and of course then volumes come down because the sellers of the product will then have also competing areas, more local areas that will also make a call on exactly the same chunks of products. Let's see what I think one or two would happen in the near term. Either the trade off moves actually opens and cargo volumes will increase and flow through this rate due to that. If it doesn't, I think the call on products from the western hemisphere to the Eastern hemisphere will yet again increase. Margins will widen again and you'll see that trade that. That is how I think that's the most likely that one of these two scenarios play out the current where there's no, let's say cold on products from either straight over most because it's impossible or from the west because the margins are not, how they say, sufficiently high. I don't think that is a long term trend. Rod Mortel Okay, interesting. Thanks for the good color. That's it for me. OPERATOR Thank you very much. Good to speak for your next question comes from the line of Bendig Folden from Dansk Bank. Your line is now open. Bendig Folden Yes, thank you. I'll just turn to your guidance for the second quarter. Obviously extremely strong, but I want to know if there's any effects we should be aware of here. Sort of unpaid balance days, anything like Kim that that might sort of mess up or modeling on the blocker. Yeah, we Use the methodology here. So we take Q1 and we take the coverage that we have for Q2 and then we have the as I said to the forward market to to take that as the benchmark. So you should not sort of see it necessarily as this is how we foresee the markets month by month we very much use it on the the four freight markets see that we observe the market of course we have the Q2 but then the onto stages based on. I hope that clarifies it so so it's a guidance that we are obliged to present and update and we have defined this methodology and perhaps I should add that we do that and then we stress it with a plus minus TC around that for this quarter it's plus minus 7500. It's very methodology of mathematically easy to explain and understand but that's how we do it. So plainly similar model for that. Oh it makes sense. And for the second quarter specifically utilization wise has it been like some unpaid ballasting or something like that? Yes, there's nothing that distracts the numbers as you point to Bennett. So the numbers for Q2 includes ballast when and if a vessel has had to have a longer ballast prior to the employment. So all of our numbers include the previous ballast leg included in the daily. Thank you. Welcome. OPERATOR There are no further questions. I will now turn the call back over to Jacob for closing remarks. Jacob Melgard (CEO) Well, thank you very much. There have been very good questions. Thanks for listening in. And this ends the Q1 2026 report for TORM. Thank you. Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice. UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga: TORM (TRMD): Free Stock Analysis Report This article TORM Q1 2026 Earnings Call: Complete Transcript originally appeared on Benzinga.com © 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

This article first appeared on GuruFocus. Release Date: May 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. TORM PLC (NASDAQ:TRMD) reported a strong first quarter with TCE revenue of $286 million, significantly higher than the same quarter last year. The company increased its full-year guidance to USD1.15 billion to USD1.45 billion, reflecting confidence in sustaining profitable growth. TORM PLC (NASDAQ:TRMD) continued active fleet renewal, adding younger second-hand vessels and committing further acquisitions while divesting older tonnage. The company maintained a conservative capital structure with a net loan-to-value ratio of 25.1%, providing financial flexibility. TORM PLC (NASDAQ:TRMD) has secured 57% of its earning days in Q2 at a fleet-wide average of TCE USD71,494 per day, providing high near-term earnings visibility. The closure of the Strait of Hormuz caused significant vessel dislocation, impacting global energy flows and creating market inefficiencies. The company's dividend payout ratio was lower at 58% due to a net working capital increase, compared to the usual 80% to 85%. Geopolitical uncertainties, such as the U.S.-Israel-Iran war, continue to present challenges and market volatility. The market impact of the closure of the Strait of Hormuz remains uncertain, affecting trade routes and cargo flows. The migration of LR2 vessels into crude trading has reduced effective CPP trading fleet capacity, impacting market dynamics. Warning! GuruFocus has detected 9 Warning Signs with TRMD. Is TRMD fairly valued? Test your thesis with our free DCF calculator. Q: Can you explain the difference in the dividend payout ratio and how it might change going forward? A: The difference in the payout ratio, which was 58% but could have been 83.5%, is due to the timing of market rate increases and the resulting build-up in net working capital. This is not related to new builds but rather the timing of liquidity from freight bookings. If market rates stabilize, the payout ratio could return to the 80% range as working capital normalizes. - Kim, CFO Q: Are you considering any strategic changes in response to the current market conditions, such as entering into more time charters? A: We have engaged in some time charters and forward cover through derivatives to capture value while maintaining operational flexibility. We are balancing between the current elevated rate environment and future projections, opting for a mix of short-term and longer-term strategies. - Jacob, CEO Q: Regarding the acquisition of six MR resales, how do these compare in price and value to older ships? A: The decision to purchase the six MR resales was based on evaluating earnings potential across different asset age profiles. We found that the pricing and timing of these resales were more attractive than new builds or older vessels, meeting our return criteria. - Jacob, CEO Q: What are your thoughts on the current market drivers and how rates might develop in the short term? A: The market has been driven by dislocation in trade flows and higher margins for customers. While there has been a recent cooling in margins, we expect either the reopening of the Strait of Hormuz or increased demand from the Western Hemisphere to drive rates. - Jacob, CEO Q: Are there any specific factors affecting your Q2 guidance that we should be aware of? A: Our Q2 guidance is based on Q1 results and current market coverage, using forward market rates as a benchmark. There are no unusual factors affecting the numbers, and any balancing is included in our daily earnings calculations. - Kim, CFO For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Torm Plc? Here are five stocks we like better. Torm delivered a strong Q1 with TCE earnings of $286 million, EBITDA of $201 million, net profit of $122 million, and EPS of $1.21, driven by firm freight rates and disciplined execution. The company raised full-year 2026 guidance sharply, lifting expected TCE to $1.15 billion-$1.45 billion and EBITDA to $800 million-$1.1 billion after a strong start to the year and solid Q2 bookings. Management said the Strait of Hormuz closure has tightened tanker supply and boosted rates, while Torm also continued fleet renewal and declared a $0.70 per-share dividend despite a working capital build. 3 Stocks That Just Announced Big Dividend Increases Torm (NASDAQ:TRMD) reported a sharply stronger first quarter of 2026 and raised its full-year outlook, citing firm freight markets, geopolitical disruptions and what management described as the company’s operating advantages in a highly volatile tanker market. Chief Executive Officer Jacob Meldgaard said the company delivered “a very strong first quarter,” with performance driven by “strong freight rates, disciplined execution and the One TORM platform.” He said the company’s centralized commercial and operating model has allowed it to react quickly to movements in spot prices and capture higher utilization and earnings. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? High Dividend Yields Make These 2 Shipping Stocks Stand Out For the quarter, TORM reported time charter equivalent, or TCE, earnings of $286 million, EBITDA of $201 million and net profit of $122 million. Chief Financial Officer Kim Balle said fleet-wide average TCE was $34,937 per day, with LR2 vessels earning more than $41,000 per day, MR vessels earning just under $33,000 per day and LR1 vessels earning about $35,000 per day. TORM raised its full-year 2026 guidance, with management pointing to first-quarter performance and strong second-quarter bookings. The company now expects full-year TCE of $1.15 billion to $1.45 billion, up from its prior range of $850 million to $1.15 billion. EBITDA guidance was increased to a range of $800 million to $1.1 billion, compared with the previous range of $500 million to $900 million. → MercadoLibre Boldly Invests in Growth: Discount Deepens Is the 149% Dividend for ZIM Integrated Shipping in Jeopardy? Balle said the company had secured 57% of its earning days in the second quarter at a fleet-wide average TCE of $71,494 per day. He described those rate levels as “unprecedented for the product tanker market,” while noting that the outlook remains subject to market volatility, geopolitical developments and changes in trade patterns, particularly in the second half of the year. First-quarter TCE: $286 million First-quarter EBITDA: $201 million First-quarter net profit: $122 million Earnings per share: $1.21 Declared dividend: $0.70 per share The board declared a dividend of $0.70 per share, equal to a payout ratio of 58%. Balle said that ratio was affected by a roughly $30 million increase in net working capital during the quarter, tied to higher freight rates and elevated bunker prices. → MP Materials Is Quietly Building a Rare Earth Powerhouse In response to a question from Evercore ISI analyst Jon Chappell, Balle said the working capital increase reflected the timing of cash receipts, with freight days outstanding of roughly 45 to 50 days. He said the issue was not related to the company’s vessel acquisitions and could reverse if rates stabilize or decline. “Say that things were steady now throughout the next quarter, you would get it back,” Balle said. “Would rates increase further? You would probably tie up a bit more on net working capital. Would it decrease? You would get it even more released.” Management devoted much of the call to the impact of the closure of the Strait of Hormuz following the outbreak of the U.S.-Israel-Iran war in late February. Meldgaard said the closure created a major disruption to global energy flows, constraining about 14% of global clean petroleum product volumes and around 30% of crude oil movements that would normally transit the strait. He said tanker transits through the strait remained more than 95% below pre-conflict levels at the time of the call. The disruption stranded more than 200 crude and product tankers inside the Persian Gulf, according to TORM, equal to roughly 3% of the global product tanker fleet and 6% of the crude fleet. Meldgaard said the market impact had been significant, tightening effective vessel supply and contributing to a sharp increase in freight rates. He also said bunker prices had moved higher, though availability remained secure. TORM had one vessel inside the Persian Gulf, and Meldgaard said the crew was doing well, morale was high and provisions were not an issue. “We take a safety-first approach in all operating decisions,” Meldgaard said. TORM continued its fleet renewal strategy during and after the quarter. Meldgaard said the company added younger secondhand vessels, committed to additional acquisitions and divested older tonnage. After quarter end, TORM agreed to acquire six MR resales, with four expected to be delivered in 2027 and two in 2028. As of quarter end, the fleet consisted of 95 vessels. Once all announced transactions are completed, the fleet is expected to increase to 103 vessels on a fully delivered basis. Asked by Clarksons Securities analyst Frode Mørkedal about the six MR acquisitions, Meldgaard said TORM compared three options: existing vessels on the water, resale vessels with relatively early delivery and newbuilding contracts. He said the company found the resale option more attractive based on pricing and delivery timing, and that the acquisitions met TORM’s internal return criteria. Balle said broker valuations for TORM’s fleet stood at $3.6 billion at the end of the quarter, while net asset value increased to $3.1 billion. Average broker valuations for the fleet rose 9.7% during the quarter, with the strongest appreciation in the LR2 and LR1 segments. Net interest-bearing debt stood at $894 million, equal to a net loan-to-value ratio of 25.1%. Meldgaard characterized the tanker market as being shaped by a growing number of geopolitical variables, including trade routes, cargo flows, sanctions regimes and security considerations. He said these factors create inefficiency through longer voyages, dislocated tonnage and volatility. He also said the industry is not facing a simple return to prior conditions once the Strait of Hormuz reopens. Instead, he described the current environment as “a structural market reset,” with vessel repositioning, inventory rebuilding and lingering inefficiencies likely to support continued activity. During the question-and-answer session, Meldgaard said TORM has used a mix of short-term and longer-term charter-outs and derivatives to capture value while retaining operational flexibility. He said the company has entered some one-year and three-year charter arrangements and has also used derivatives to cover some 2027 exposure. Asked about recent rate movements, Meldgaard said the market had been influenced by buyers in Asia, Australia and East Africa seeking replacement cargoes from the Western Hemisphere while the Strait of Hormuz remained closed. He said either the strait could reopen, increasing cargo flows, or demand for Western Hemisphere products could rise again if it does not. “The current, where there’s no call on products from either Strait of Hormuz because it’s impossible or from the west because the margins are not sufficiently high, I don’t think that is a long-term trend,” Meldgaard said. Torm A/S (NASDAQ: TRMD) is an international shipping company specializing in the transportation of refined petroleum products. The firm owns and operates a modern fleet of product tankers, including both Handysize and MR vessels, which are designed to carry a broad range of clean petroleum cargoes such as gasoline, jet fuel and diesel. Torm's core business revolves around voyage and time-charter contracts with major oil companies, trading houses and other energy sector clients around the world. The company's fleet is deployed on global trade routes, with particular focus on major refining and consumption regions in Europe, North America and Asia. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Torm Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.