TORM plc Q3 2025 Results, Dividend Distribution, and Financial Outlook 2025

06 Nov 2025 08:13 CET

INSIDE INFORMATION

"TORM delivered its strongest quarterly result so far in 2025, demonstrating the
strength of our integrated operating model and the people behind it," says Jacob
Meldgaard, adding: "We continue to deliver market-leading performance and create
long-term value for our shareholders."

Financial Results

In the third quarter of 2025 TORM (Nasdaq: TRMD or TRMD A) generated time
charter equivalent earnings (TCE) of USD 236.4m including unrealized losses on
derivatives of USD 7.3m (2024, same period: USD 263.4m including unrealized
gains on derivatives of USD 0.8m). Adjusted EBITDA for the Group totaled USD
159.4m (2024, same period: USD 190.9m), while net profit for the period amounted
to USD 77.6m (2024, same period: USD 130.7m), reflecting a development in line
with previous quarters. Although rates firmed during the third quarter of 2025,
overall freight rate levels for the first nine months of the year were lower
compared to 2024, underscoring a normalization of market conditions.

Geopolitical volatility and broader vessel sanctions continued to add complexity
and underpin the tanker market this quarter. In this market, TORM achieved TCE
rates of USD/day 31,012 on average (2024, same period: USD/day 33,722), and
available earning days increased to 7,859 (2024, same period: 7,788). Our vessel
class LR2 achieved TCE rates of USD/day 38,685, the LR1 vessels achieved TCE
rates of USD/day 29,508, and the MR vessels achieved TCE rates of USD/day
28,632.

For the third quarter of 2025, Return on Invested Capital amounted to 13.8%
(2024, same period: 20.3%) reflecting the lower freight rates compared to the
very high levels seen a year ago, and basic EPS amounted to USD 0.79 (2024, same
period: USD 1.38).

Key Figures

USDm Q3 2025 Q3 2024 Change 9M 2025 9M2024 change
Time charter 236.4 263.4 (27.0) 658.7 920.1 -261.4
equivalent earnings
(TCE)
EBITDA 152.1 191.7 (39.6) 414.4 708.6 -294.2
Adjusted EBITDA* 159.4 190.9 (31.5) 426.0 709.2 -283.2
Net profit/(loss) 77.6 130.7 (53.1) 199.2 534.1 -334.9
for the period
Unrealized (7.3) 0.8 (8.1) (11.6) (0.6) -11.0
gains/(losses) on
derivatives
TCE per day (USD)* 31,012 33,722 -2,710 28,151 39,626 -11,475
Basic 0.79 1.38 (0.59) 2.03 5.77 (3.74)
earnings/(loss) per
share (USD)
Dividend per share 0.62 1.20 (0.58) 1.42 4.50 (3.08)
(USD)
Dividend pay-out 78% 87% (9)% 70% 78% (8)%
ratio

*   Excludes unrealized gains/losses on derivatives.

Business Highlights

In the third quarter of 2025, TORM completed the sale and delivery of the two
2008-built MR vessels; TORM Discoverer and TORM Voyager. TORM further sold the
2007-built MR vessel TORM Adventurer and acquired a 2010-built LR2 vessel, with
both transactions scheduled for delivery in the fourth quarter of 2025.

In the fourth quarter, TORM has also agreed to acquire an additional four 2014
-built MR vessels. After completion of these transactions, TORM's fleet size
will be 92 vessels.

In July 2025, TORM secured financing commitments of up to USD 857m on attractive
terms to refinance two existing syndicated loans and lease agreements covering
22 vessels. The new structure, combining term and revolving credit facilities,
strengthens the company's capital flexibility and extends its maturity profile.
To date, TORM has repurchased 13 of the 22 vessels. Two additional purchase
options have been exercised, with one vessel expected to be delivered in the
fourth quarter of 2025 and the other in the first quarter of 2026, while the
remaining vessels are scheduled for repurchase during 2026.

The refinancing, together with expected lower maintenance cost, is anticipated
to reduce TORM's cash break-even rate. This improved structure may support
higher dividend payout ratios, potentially providing additional returns to
shareholders.

Distribution of Dividend

TORM's Board of Directors has today approved an interim dividend for the third
quarter of 2025 of USD 0.62 per share to be paid to the shareholders
corresponding to an expected total dividend payment of USD 60.7m. The
distribution for the quarter is equivalent to 78% of net profit and reflects the
Distribution Policy. The payment date is 03December 2025 to all shareholders on
record as of 20November 2025, and the ex-dividend date is 19November 2025 for
the shares listed on Nasdaq OMX Copenhagen and 20November 2025 for the shares
listed on Nasdaq New York.

Financial Outlook 2025 - INSIDE INFORMATION

As of 31 October 2025, TORM had covered 55% of the Q4 2025 earning days at an
average rate of USD/day 30,156. By vessel class, coverage stood at 65% for LR2s
at USD/day 33,726, 48% for LR1s at USD/day 27,907 and 52% for MRs at USD/day
28,949.

For the full-year 2025, 89% of the earning days have been fixed at an average
rate of USD/day 28,281. The remaining 11% of the earning days in 2025 -
equivalent to 3,625 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 4m.

Based on the earnings realized this far as well as the outlook for the remaining
part of the year, TORM further narrows the full-year 2025 guidance. The midpoint
of the guidance range is slightly increased. Thus, TCE earnings are expected to
be in the range of USD 875 - 925m (previous guidance USD 800 - 950m), and EBITDA
is expected to be in the range of USD 540 - 590m (previous guidance USD 475 -
625m) based on the current fleet size.

Webcast and Conference Call

TORM will host a webcast and conference call for investors and analysts today,
Thursday 06 November at 10:00 am Eastern Time / 04:00 pm Central European Time.

Participants joining webcast:

Please access the webcast here (https://events.q4inc.com/attendee/317697137).

Participants joining by telephone:

Please call one of the dial-in numbers below at least ten minutes prior to the
start (Conference ID: 5639946):

Denmark: +45 32 74 07 10

United Kingdom: +44 20 3481 4247

United States: +1 (646) 307 1963

Contacts

Mikael Bo Larsen, Head of Investor Relations

Tel.: +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 (ticker: TRMD A and 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 developments in the Middle East, including
the war in Israel and the Gaza Strip, and the conflict regarding the Houthis'
attacks in the Red Sea; 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.

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