TORM (TRMD) Q1 2025 earnings summary

Executive summary

• Achieved Q1 2025 net profit of USD 63 million, reflecting normalized but strong results compared to last year, though down from USD 209.2 million year-over-year due to lower freight rates.

• TCE earnings reached USD 214 million, with fleetwide freight rates stable versus Q4 2024 but significantly lower year-over-year.

• Divested three 20-year-old MR vessels and one 17-year-old LR2 vessel, reducing fleet size to 91 and generating a profit of USD 9.4 million.

• Market environment stabilized after late 2024 volatility, but remains dynamic and influenced by external factors and ongoing geopolitical uncertainty.

• Interim dividend of USD 0.40 per share declared, totaling USD 39.1 million and representing 62% of net profit.

Financial highlights

• EBITDA for Q1 2025 was USD 137.7 million, with a fleetwide TCE rate of USD 26,807 per day.

• Basic EPS for Q1 was USD 0.64; dividend declared at USD 0.40 per share.

• Broker valuations for the fleet declined 12% to USD 3.1 billion, with older vessels seeing up to 18% reduction.

• Net interest-bearing debt stands at USD 831.7 million, with a net loan-to-value of 27%.

• Free cash flow improved to USD 126.5 million from USD 25.7 million year-over-year.

Outlook and guidance

• Full-year 2025 TCE earnings forecast narrowed to USD 700–900 million (previously USD 650–950 million).

• Full-year EBITDA guidance narrowed to USD 400–600 million (previously USD 350–650 million).

• 43% of 2025 earning days fixed at USD 27,829 per day; Q2 2025 coverage at USD 28,026 per day.

• Freight rates expected to decline year-over-year, in line with spot and forward market trends.

• A USD 1,000 change in freight rates per day would impact EBITDA by approximately USD 18 million.