Q3 2024 Torm PLC Earnings Call Transcript
Key Points
- TORM PLC (TRMD) reported strong financial performance with time charter equivalent earnings rising to $263 million and EBITDA amounting to $191 million.
- The company declared a dividend of $1.20 per share for the quarter, maintaining a strong dividend flow scheme.
- TORM PLC (TRMD) successfully acquired eight second-hand MR vessels, enhancing its fleet and positioning for future growth.
- The company achieved a return on invested capital of 20.3%, demonstrating a healthy business environment.
- TORM PLC (TRMD) maintained a solid financial foundation with a net loan to value ratio of 23.1%, lower than the same quarter last year.
- Freight rates were lower than expected in the latter part of the quarter due to geopolitical tensions and market dynamics.
- A significant portion of increased CPP volumes was carried on uncoded VLCCs and Suezmaxes, temporarily capping rates.
- The product tanker market experienced a decline in rates due to short-term factors such as intensified crude tanker cannibalization.
- Middle East exports fell by 8% month on month in October, impacting the market negatively.
- The current market environment has led to a discrepancy between public market pricing and net asset value, limiting the use of share-based transactions for acquisitions.
Hello, my name is Audra, and I will be your conference operator today. At this time, I would like to welcome everyone to the TORM third quarter, 2024 results conference call.
(Operator Instructions)
At this time, I would like to turn the conference over to Jacob Meldgaard, Chief Executive Officer. Please go ahead.
Thank you and a warm welcome to everyone joining us on the call today. This morning, we released our third quarter results, and I am pleased to share that TORM has once again delivered a strong financial performance.
Let me start by highlighting some of the key takeaways for the quarter.
Our time charter equivalent earnings rose to $263 million and EBITA amounted to $191 million. Although freight rates have been lower than expected in the last part of the quarter. We continue to see the market dynamics we've experienced in recent quarters driven by ongoing geopolitical tensions from both the Ukraine Russia conflict and escalating issues in
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