Danish product tanker owner TORM has posted its first quarterly net profit in five years helped by lower oil prices and higher refinery margins.
In the first quarter of 2015, TORM realized a positive EBITDA of US$53 million and a profit before tax of US $9 million.
TORM’s largest segment, MRs, achieved spot rates of US$25,275 per day in the first quarter of 2015, up by 66% year-on-year. The Tanker Division reported a gross profit of US$62.9 million in the first quarter of 2015.
“The combination of lower oil prices and wider refinery margins boosted the demand for transportation of refined oil products in the first quarter of 2015,” says CEO Jacob Meldgaard and adds: “TORM’s operational platform captured the benefits of the stronger market and has delivered a positive net profit result for the first time since the first quarter of 2010. The operational performance and the new Restructuring Agreement provide a robust foundation for TORM.”
TORM announced on April 20th that the new Restructuring Agreement had been signed by TORM, Oaktree Capital Management and the majority lenders holding in aggregate 94% of TORM’s existing loan facilities by value.
TORM’s operated fleet as at March 31, 2015 consisted of 45 owned vessels, four chartered-in product tankers, and four bulk vessels under time charter. Another 25 product tankers were under commercial management with the group.
Not surprisingly, TORM’s dry bulk segment was the worst performing with a net loss of $2.2 million in the first quarter of 2015.