TORM has reported its first quarter results for 2025, which align with expectations despite ongoing geopolitical challenges. Jacob Meldgaard, the company’s CEO, emphasized that the results demonstrate resilience amid uncertainty. In financial terms, TORM generated time charter equivalent (TCE) earnings of USD 214.0 million for the first quarter, factoring in unrealized derivative losses of USD -2.1 million. In comparison, TCE earnings for the same period in 2024 were USD 330.7 million, also including unrealized losses.
Adjusted EBITDA for this quarter reached USD 137.7 million, significantly down from USD 267.2 million a year earlier. The net profit was USD 62.9 million, a sharp decline from USD 209.2 million in 2024, largely attributed to lower freight rates. The trading landscape shifted in early 2025, with volumes on affected routes declining by about one-third due to disruptions in the Red Sea. However, there were signs of recovery in product tanker ton-miles beginning in March.
Should the Red Sea reopen, Middle East-to-Europe trade flows are anticipated to recover, potentially leading to a decrease in demand for crude tankers transporting clean petroleum products. TORM’s average TCE rates for the quarter were USD 26,807 per day, a decrease from USD 43,152 for the same time last year. The company’s various vessel classes reported differing TCE rates, with LR2 and LR1 vessels achieving USD 33,806 and USD 24,947 respectively. Additionally, TORM’s Board of Directors has approved a quarterly dividend of USD 0.40 per share, set to be paid on June 4, 2025, to shareholders recorded by May 22, 2025.
Looking forward, TORM has covered 57% of earning days for Q2 2025 with an average rate of USD 28,026. The company’s full-year 2025 guidance has been narrowed, anticipating TCE earnings between USD 700 million and USD 900 million compared to USD 1,135 million in 2024. Adjusted EBITDA is projected to be within USD 400 million to USD 600 million, subject to the current market dynamics.