Post on 20-May-2020
1 5 No ve m b e r 2 0 1 6
Q3 2016 RESULTS
2
SAFE HARBOR STATEMENT
Matters discussed in this release may constitute forward-looking statements. 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 statements other than statements of historical facts. The words “believe,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect,” “pending” and similar expressions generally identify forward-looking statements.
The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, 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 the strength of the world economy and currencies, changes in charter hire rates and vessel values, changes in demand for “ton miles” of oil carried by oil tankers, the effect of changes in OPEC’s petroleum production levels and worldwide oil consumption and storage, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled dry-docking, changes in TORM’s operating expenses, including bunker prices, dry-docking and insurance costs, changes in the regulation of shipping operations, including requirements for double hull tankers or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents, political events or acts by terrorists.
In light of these risks and uncertainties, you should not place undue reliance 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 to these forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.
3
• Highlights
• Product Tanker Market Overview and Outlook
• Financial and Operating Performance
AGENDA
4
Product tanker
market
Corporate
events
• TORM distributed USD 25m in dividends in September 2016 and intends to distribute 25 to 50% of Net Income going forward
• Since May 2016, TORM has conducted share repurchases for a total of USD 22m from the squeeze-out process (USD 19m), and general
market purchases (USD 3m)
Sales &
Purchase
• Product tanker ordering remained very limited in the third quarter of 2016. By the end of October 2016, the order book stands at 13% of the
total fleet, the lowest since 2012
• Second-hand values have continued to be under pressure due to limited available financing and a high number of sale candidates
• The value of TORM’s product tanker fleet has decreased by USD 73m (~5%) in the third quarter of 2016
Q3 2016
Results
HIGHLIGHTS FOR THE THIRD QUARTER OF 2016
• EBITDA of USD 40m (Q1-Q3 2016: USD 166m) and Profit before tax of USD 2m (Q1-Q3 2016: USD 48m)
• RoIC of 2.4% (Q1-Q3 2016: 6.3%) and Earnings per share of USD 0.0 or DKK 0.2 (Q1-Q3 2016: USD 0.8 or DKK 5.1)
• Net Asset Value estimated at USD 798m as of 30 September, corresponding to a NAV/share of USD 12.8 or DKK 85.5
• For the full-year 2016, TORM has specified its guidance to:
‒ EBITDA in the range of USD 185 – 205m
‒ Profit before tax in the range of USD 30 – 50m
2016
guidance
• As expected, the third quarter was challenging but profitable. TORM achieved product tanker freight rates across segments of USD/day
~14,400, which is a decrease of USD/day ~3,000 compared to the previous quarter
• Gasoline and diesel stocks in the main markets are approaching five-year averages, as inventory drawdowns have continued in the third
quarter. Although this bodes well for the coming period, destocking has been a negative factor for the product tanker market in the third
quarter
• Another negative factor in the third quarter, was the lack of long-haul trades from West to East, which mainly was due to maintenance at Far
East Asian petrochemical facilities and the usage of substitution products such as LPG
5
EBITDA OF USD 40M AND A POSITIVE PBT OF USD 2M FOR Q3 2016
• EBITDA of USD 40m and a positive profit
before tax of USD 2m for Q3 2016
• Q3 2016 Equity of USD 963m and cash
and cash equivalents of USD 77m
• Q3 2016 RoIC of 2.4% and Earnings per
share of USD 0.0 (or DKK 0.2)
• Q3 2016 Tanker freight rates of USD/day
14,391
USDmQ3 2016
Pro forma
Q3 2015* Q1-Q3 2016
Pro forma
Q1-Q3 2015*
Pro forma
2015*
P&L
TCE Earnings 103 165 526 668 582
Gross profit 50 114 198 288 361
Sale of vessels 0 0 0 0 0
EBITDA 40 105 166 257 319
Profit before tax 2 72 48 160 188
Balance sheet
Equity 963 947 963 947 976
NIBD 610 534 610 534 612
Cash and cash equivalents 77 170 77 170 168
Key figures
Earnings per share (USD) 0.0 1.1 0.8 2.6 3.0
Return on Invested Capital (RoIC) 2.4% 21.0% 6.3% 16.5% 14.1%
Net Asset Value (NAV) 798 - 798 - 1,169
Number of vessels (#) 81 75 81 75 78
Tanker TCE/day (USD) 14,391 26,148 17,255 23,843 22,879
Tanker OPEX/day (USD) 6,596 6,805 6,967 7,145 7,193
* Pro forma figures for 2015 presented as though the Restructuring occurred as of 1 January 2015 and include the combined TORM and Njord fleet
6
• Highlights
• Product Tanker Market Overview and Outlook
• Financial and Operating Performance
AGENDA
7
PRODUCT TANKER FREIGHT RATES SOFTENED DURING Q3
Source: Clarksons. Spot earnings: LR2: TC1 Ras Tanura-> Chiba, LR1: TC5 Ras Tanura-> Chiba and MR: average basket of Rotterdam->NY, Bombay->Chiba, Mina Al Ahmadi->Rotterdam, Amsterdam->Lome,
Houston->Rio de Janeiro, Singapore->Sidney
FREIGHT RATES IN ‘000 USD/DAY
West
• Global destocking of refined oil products kept freight rates at lower levels
compared to previous quarters
• Naphtha arbitrage trade from West to East continued to decline,
negatively impacting the LR market
• West African imports declined on economic and political issues
• Atlantic trade flows declined from Q2 but generally remained at healthy
levels compared to last year
• A temporary outage of the Colonial pipeline in September and early
November boosted MR earnings until the pipeline capacity was restored
East
• An increase in the use of liquefied petroleum gas, as a substitution for
naphtha in the Far East petrochemical sector, had a negative impact on
the LR market
• The penetration of newbuilt VLCCs and Suezmax tankers into traditional
LR2 routes weighed negatively on product tanker earnings
8
DEMAND FUNDAMENTALS FOR PRODUCT TANKERS -INVENTORIES
Sources: Reuters, EIA, TORM Research
• The fundamental long term outlook remains positive with the
oil demand increasing and the ton-mile is positively impacted
by the dislocation of refinery capacity from Europe and the
Pacific (Japan) to the Middle East and Asia
• Global product inventories are still at high levels, although
especially gasoline stockpiles in the main oil consuming
regions have started to draw down and move closer to their
historical levels
US EAST COAST GASOLINE INVENTORIES
Million bbl Million bbl
9
DEMAND FUNDAMENTALS FOR PRODUCT TANKERS –ASIAN NAPHTHA AND LPG PRICES
Sources: Reuters, EIA, TORM Research
• Strengthening LPG prices vis-à-vis naphtha and lower
expected maintenance at Asian naphtha crackers incentivize
the Asian petrochemical sector to use more naphtha as a
feedstock
• Refinery maintenance in the Middle East towards the end of
the year and improved naphtha arbitrage economics, may
potentially lead to higher naphtha flows from West to Asia
• Over medium/longer-term, petrochemical capacity additions
in the Middle East and India will limit naphtha export volumes
from the region and potentially lead to increasing West to
Asia naphtha flows
ASIAN NAPHTHA AND LPG PRICES
USD/ton
10
NIGERIAN CRUDE OIL PRODUCTION
• Economic and political issues in West Africa have continued
to weigh on imports to the region and have negatively
influenced both the MR and LR markets
• Low oil revenue in Nigeria, as a consequence of low oil prices
and oil production currently approximately 30% below the
2015 average level, has led to significantly lower imports of
clean petroleum products months
DEMAND FUNDAMENTALS FOR PRODUCT TANKERS –
WEST AFRICA
Million
b/d
Source: JODI
11
SUPPLY OUTLOOK FOR THE PRODUCT TANKER FLEET VARIES BY SEGMENT
Notes: * The number of vessels at the beginning of 2016 was: LR2 284, LR1 325, MR 1,488, Handy 680 (includes chemical vessels). Net fleet growth: gross order book adjusted for expected scrapping, delivery
slippage and TORM assumptions on additional ordering. Currently confirmed orders account on average for 75% of forecast deliveries in 2018. Source: TORM Research
NET FLEET GROWTH Y-O-Y (NO. OF VESSELS)*
MR ORDER BOOK AS PERCENTAGE OF THE FLEET (DWT)
• Ordering of product tanker newbuildings has
remained at a historically low level this year with 27
vessels ordered so far compared to 150 during the
first three quarters of 2015
• Consequently, the product tanker order book to
fleet ratio has fallen to 13%, the lowest since 2012
• For the MR segment, the order book to fleet ratio is
11%, the lowest level for at least 20 years
• Product tanker deliveries totaled 2.2m dwt during
Q3, which combined with limited scrapping activity,
resulted in a 1.3% net fleet growth in Q3
• Year-to-date, the total product tanker fleet capacity
has grown by 5.7%, and for the total year, the fleet
is expected to grow by slightly more than 6%
• Newbuilding deliveries are expected to peak in
2016 with fleet growth starting to slow down during
2017 and especially in 2018
2005-2015 average fleet growth for
LR2, LR1, MR and Handysize%
m dwt
12
• The second-hand market was relatively slow
during Q3, with buyers primarily focusing on older
tonnage, combined with a few modern sales
• The second-hand prices remain under pressure
• The newbulding market has literally come to a
stand still, with prices under continued pressure
• Lack of traditional bank financing remained an
important issue, whereas we have seen more
sale/lease back transactions reported
Source: Clarksons
USDm
LR1 - Newbuilding MR - Newbuilding
USDm
MR - 5 yr. Second-Hand
USDk/day
MR 1Yr T/C
VESSEL PRICE DEVELOPMENT
LR2 - Newbuilding
PRODUCT TANKER VESSEL PRICES
13
• Highlights
• Product Tanker Market Overview and Outlook
• Financial and Operating Performance
AGENDA
14
Unfixed days
2017 2018
27,498
4,015
17,520
2,5553,408
25,696
3,914
16,743
2,5002,539
Q4 2016
5,680
907
3,851
583339
HandyMRLR1LR2
Illustrative change in cash flow generation potential for the TORM fleet
∆ Average TCE/day Q4 2016 2017 2018
USD 2,000 11.4 51.4 55.0
USD 1,000 5.7 25.7 27.5
USD (1,000) (5.7) (25.7) (27.5)
USD (2,000) (11.4) (51.4) (55.0)
USDm
# of days
Of total earning days 77% 91%
TORM HAS SIGNIFICANT OPERATING LEVERAGE IN THE
PRODUCT TANKER MARKET
93%
15
Notes:
• Peer group is based on Ardmore (split by ECO and ECO-modified), d’Amico (composite of MR and Handy), Frontline 2012, BW (Q1-Q2 2015), Norden, Teekay Tankers and
Scorpio, OSG
USD/day
PEER COMPARISON SHOWS THAT TORM HAS CONTINUED TO PERFORM COMMERCIALLY DESPITE AN OLDER FLEET
16
PRO FORMA OPEX HAS SHOWN A FLAT TREND
6,000
5,500
6,500
7,500
8,000
9,000
7,000
8,500
5,000
Q3 15Q2 15 Q3 16Q2 16Q1 16
USD/operating day
Q4 15
17
TORM operates on a fully integrated commercial and
technical platformTORM has trimmed administration expenses significantly
Admin. expenses (quarterly avg. in USDm)
• TORM’s operational platform handles all commercial and
technical operation
• The integrated business model provides TORM with the highest
possible trading flexibility and earning power
• TORM manages
‒ ~80 vessels commercially
‒ ~75 vessels technically
• TORM has a global reach with offices in Denmark, India, the
Philippines, Singapore, the UK and the US
• Average admin cost per earning day for Q1-Q3 2016 of
USD/day ~1,500
• Outsourced technical and commercial management would
affect other line items of the P&L
TORM HAS A FULLY INTEGRATED BUSINESS MODEL AND ADMIN EXPENSES ARE TRENDING SIGNIFICANTLY DOWN
0 2 4 6 8 10 12 14 16 18 20 22 24
2015*
2014
2013
2012 -53%
Q1-Q3 2016
2011
2010
2009
2008
* Pro forma figures for 2015 presented as though the Restructuring occurred as of 1 January 2015 and include the combined TORM and Njord fleet
18
TORM’S NET ASSET VALUE ESTIMATED AT USD 798M
194 689
15877 27
Net Asset
Value
798
Working
Capital
CashCommitted
CAPEX
Outstanding
debt
Total vessel
value
1,541
Value of
newbuildings
Value of
vessels
on water
1,347
LTV of 55%
• Based on broker values, TORM’s vessels
including newbuildings were estimated at
USD 1,541m as of 30 September 2016
• With an outstanding debt of USD 689m,
and committed CAPEX of USD 158m,
TORM’s Loan-to-Value was at 55%
ensuring a strong capital structure
• Adjusting for cash and working capital,
TORM’s Net Asset Value (NAV) was
estimated at USD 798m
• On a per share basis*, the NAV was
estimated at USD 12.9 or DKK 85.5
30 September figures, USDm
* Calculated based on 62,001,308 shares (excluding 297,540 treasury shares) and USD/DKK fx rate of 6.7
19
TORM has, in order to allow for dividend
payments, terminated the cash sweep
mechanism under the term facility and
begun paying fixed amortizations from Q3
2016.
Ample headroom under our attractive
covenant package:
Minimum liquidity: USD 75m*
Minimum book equity ratio: 25%
(adjusted for market value of vessels)
* Of which USD 20m must be cash or cash equivalent
689 3289
72135
57
Hereafter
304
2020
repayment
2019
repayment
2018
repayment
2017
repayment
ROY 2016
repayment
Debt as of
30 Sep 2016
1588662
10
Total201820172016
7577
Available
debt facility
Cash position
CAPEX commitments Available liquidity
CAPEX and liquidity as of 30 June 2016 (USDm)
• TORM is well-positioned to service
future CAPEX and debt commitments
• Strong operational cash flows expected
in 2016
Scheduled debt repayments (USDm)
100% 5% 13% 10% 20% 8% 44%
TORM HAS A FAVOURABLE FINANCING PROFILE AND STRONG LIQUIDITY POSITION
Financing of LR2
Newbuildings
and new DSF
financing
Total available
liquidity
297
152145
20
EBITDA
(USDm)
Profit before
tax (USDm)
Earnings per
Share (USD)
2016 full-year result USD/day 1,000
freight rate change
185 – 205 +/- 5.7
30 – 50 +/- 5.7
+/- 11.4
+/- 11.4
+/- 0.1
FORECASTED EBITDA IN THE RANGE OF USD 185M TO USD 205M FOR FY2016
With 5,680 unfixed earning days as of 30 September 2016, TORM’s financial result is highly exposed to
freight rate fluctuations.
USD/day 2,000
freight rate change
0.5 – 0.8
Earnings per
Share* (DKK)+/- 0.63.1 – 5.3
* Earnings per Share in DKK is calculated assuming an USD/DKK fx rate of 6.7 and 62.1m shares
+/- 0.2
+/- 1.2
21
TORM HAS DISTRIBUTED A TOTAL OF USD 47M TO SHAREHOLDERS FOLLOWING THE SEPTEMBER DIVIDEND
2016 distribution to shareholders (USDm)
• In connection with the Corporate Restructuring, TORM plc has made
accretive share repurchases for an amount of USD 19m covering 2.4% of
the outstanding TORM A/S shares
• During the third quarter of 2016, TORM plc has repurchased own shares
on Nasdaq Copenhagen for a total consideration of USD 2m, at a
significant discount to NAV. TORM may from time to time continue to
conduct limited share purchase in the market
• On 15 September, TORM plc distributed a USD 25m dividend payment
• The USD 25m in dividend corresponds to a dividend per share of
USD 0.40 or DKK 2.70*
• During 2016, TORM has distributed a total of USD 47m to shareholders, in
addition to any further purchase in the market, corresponding to a yield of
8%*Total distributionSeptember
dividend
319
Market purchaseRepurchase
from Corporate
Reorganization
25
47
Potential further distributions
TORM’s distribution policy from 2017
• 25 to 50% of Net Income
• Semi-annual distribution
• Dividend and/or share repurchase
• Policy reviewed periodically
* Based on share price as of 30 September and a USD/DKK fx rate of 6.7
APPENDIX
23Selective fleet growthStrong capital structure
One TORM – Superior integrated operating platformPure-play product tanker owner
TORM AIMS TO BE REGARDED AS THE REFERENCE COMPANY IN THE PRODUCT TANKER SEGMENT
One TORM – Superior integrated operating platform
Global
scaleOne
TORM
Financial
flexibilityGrowth
Active in all large segments to meet customer demands
~80 owned product tankers
Primarily spot-oriented
Limited T/C-in (off-balance sheet)
commitments
In-house technical and commercial management (preferred by
customers)
Enhanced responsiveness to
customers and higher TCEs
Cost-efficient without leakages
May serve as consolidator
Selective growth based on
projected financial returns
In-house S&P team with relationships with
brokers, yards, banks and shipowners
Focused on profitabilityModerate debt levels with
attractive debt profile
Financial strength to pursue growth
Strong balance sheet gives a competitive advantage
when pursuing vessel acquisitions from lenders and yards
Semi-annual distribution policy of 25 to 50% of net income (after
fixed payment of USD 25m in September 2016)
24
FLEET UPDATE
# of vessels
Q2 2016 Changes Q3 2016 Changes EoY 2016 Changes EoY 2017 Changes EoY 2018
Owned vessels
LR2 8 - 8 - 8 1 9 3 12
LR1 7 - 7 - 7 - 7 - 7
MR 51 - 51 - 51 - 51 - 51
Handysize 11 - 11 - 11 - 11 - 11
Total 77 - 77 - 77 1 78 3 81
Charter-in vessels
LR2 2 - 2 - 2 - 2 -2 0
LR1 0 - 0 - 0 - 0 - 0
MR 2 - 2 - 2 -2 0 - 0
Handysize 0 - 0 - 0 - 0 - 0
Total 4 - 4 - 4 -2 2 -2 0
Total fleet 81 - 81 - 81 -1 80 1 81
Please note: TORM has the option to purchase up to six additional vessels within the LR2, LR1 or MR segment with expected delivery in 2018 and 2019
25
Seafarers: ~2,800
• 1,300 Filipino seafarers
• 1,100 Indian seafarers
• 170 Danish seafarers
• 200 Croatian seafarers
• 30 Polish seafarers
TORM offices: ~270
A world-leading product
tanker company
• 125+ years of history
• A leading product tanker
owner
Listed on Nasdaq
Copenhagen
Key facts Global footprint based on regional power and presence
TORM employees:
TORM AT A GLANCE
26
Oil product supply chain
Exploration Transportation Refining Transportation Storage/distribution
Crude
oil
Fuel oil Con-
densate
Diesel/
gasoil
Jet fuel/
kero-
sene
Naph-
tha
Gaso-
line
MTBE Ethanol Vege-
table oil
Biofuel
”Dirty products” ”Clean products”
Typical refined oil products carried on TORM’s vessels
PRODUCT TANKERS HAVE COATED TANKS AND HAVE SPECIALLY DESIGNED CARGO SYSTEMS WITH FLEXIBILITY TO TRANSPORT A WIDE RANGE OF DIFFERENT PRODUCTS
27
Jacob Meldgaard
▪ Executive Director in TORM plc
▪ CEO of TORM A/S since April 2010
▪ Previously Executive Vice President of the Danish shipping company NORDEN where he was in charge of the company’s dry cargo division
▪ Prior to that, he held various positions with J. Lauritzen and A.P. Møller-Mærsk
▪ More than 20 years of shipping experience
Lars Christensen
▪ Head of Projects
Executive Director
Senior Management
Christian Søgaard-Christensen
▪ Acting Chief Financial Officer
Jesper S. Jensen
▪ Head of Technical Division
MANAGEMENT TEAM WITH AN INTERNATIONAL OUTLOOK AND MANY YEARS OF SHIPPING EXPERIENCE
28
OAKTREE IS THE MAJORITY SHAREHOLDER AND
OWNERSHIP HAS BECOME MORE DISPERSED
TORM’s shares are listed on Nasdaq
Copenhagen under the ticker TRMD A
Shares
• 62.3m A shares, one B share and one C
share
• The B and C shares have certain voting
rights
• A Share has a nominal value of USD/share
0.01
For further company information,
visit TORM at www.torm.com
Share information Ownership has become more dispersed
3162
10001 0
6
1010
100
627
38
TotalRetailInstitutionalOaktree DW unknownParticipants
in
Restructuring
Shareholdings as at Restructuring 2015, %
Estimated shareholdings following the
corporate reorganization, %
29
REPORTED KEY FIGURES
USDm* Q3 2016 Q3 2015 Q1-Q3 2016 Q1-Q3 2015 2015
Revenue 156 216 526 354 540
EBITDA 40 96 166 148 210
Profit/(loss) before tax 2 65 48 100 127
Balance sheet
Total assets 1,761 1,767 1,761 1,767 1,867
Equity 963 947 963 947 976
NIBD 610 534 610 534 611
Cash and cash equivalents 77 170 77 170 168
Cash flow statement
Operating cash flow 38 80 154 137 214
Investment cash flow -18 46 -103 -4 -159
Financing cash flow -60 -8 -143 -2 75
Financial related key figures
EBITDA margin 26% 44% 32% 42% 39%
Equity ratio 55% 54% 55% 54% 52%
Return on invested capital (RoIC) 2.4% 27.8% 6.3% 14.0% 13.1%
* The financial results for 2015 will reflect Oaktree activities in the period from January 2015 until completion of TORM’s Restructuring (13 July 2015), and the combined entity from completion of TORM’s Restructuring until 31 December 2015.
30
TORM TANKER SPOT RATES VERSUS INDUSTRY BENCHMARK
Source: Clarksons, Spot earnings: LR2: TC1 (Ras Tanura-> Chiba), LR1: TC5 (Ras Tanura-> Chiba), MR: average basket of Rotterdam->NY, Bombay->Chiba, Mina Al Ahmadi->Rotterdam,
Amsterdam->Lome, Houston->Rio de Janeiro, Singapore->Sidney, Handysize: average basket of Augusta->Lavera, Tuapse->Agioi Theodoroi.
TORM spot vs. industry benchmark Q3 2016 (USD/day)
TORM spot vs. industry benchmark last 12 months (USD/day)
Note: Benchmarks are not one-to-one comparisons as they do not take broker commission, armed guards and low sulphur fuel costs into account.
0
5,000
10,000
15,000
20,000
25,000
30,000
+33%+113%
+46%+25%
HandysizeMRLR1LR2
BenchmarkTORM
0
5,000
10,000
15,000
20,000
25,000
+42%+18%
+28%+15%
HandysizeMRLR1LR2
31
Owned days
PER 30.09.2016
T/C-in days at
fixed rate
T/C-in days at
floating rate
Total physical
days
Coverage
TORM HAS A SPOT-ORIENTED PROFILE IN A FUNDAMENTALLY STRONG MARKET
2016 2017 2018 2016 2017 2018
LR2 732 2,855 4,160
LR1 641 2,500 2,555
MR 4,639 18,047 18,615
Handysize 1,007 3,914 4,015
Total 7,019 27,315 29,345
LR2 - - - - - -
LR1 - - - - - -
MR 183 286 - 16,250 16,250 -
Handysize - - - - - -
Total 183 286 - 16,250 16,250 -
LR2 183 726 340
LR1 - - -
MR - - -
Handysize - - -
Total 183 726 340
LR2 915 3,581 4,500 576 1,042 1,092
LR1 641 2,500 2,555 58 - -
MR 4,822 18,332 18,615 971 1,589 1,095
Handysize 1,007 3,914 4,015 100 - -
Total 7,385 28,327 29,685 1,705 2,631 2,187
LR2 63% 29% 24% 20,894 24,200 24,198
LR1 9% 0% 0% 15,737 - -
MR 20% 9% 6% 14,629 18,765 17,545
Handysize 10% 0% 0% 8,000 - -
Total 23% 9% 7% 16,396 20,918 20,868
Owned days
Charter-in days at fixed rate T/C-in costs, USD/day
Charter-in days at floating rate
Total physical days Covered days
Covered, % Coverage rates, USD/day
32
Set climate targets:
•20% reduction of CO2 emissions per vessel by 2020
(starting point in 2008), in g/ton-km
•25% reduction of CO2 emissions from offices per
employee by 2020
(starting point in 2008), ton/employee
TORM has set and communicated on climate targets
• Danish Shipowners’ AssociationAs part of DSA,TORM is pushing for
international regulation and standards on
e.g. emissions through the International
Maritime Organization
•Maritime Anti-Corruption NetworkTORM is founding member of a global
business network working towards a
maritime industry free of corruption that
enables fair trade
•UN Global CompactTORM became signatory to the
UNGC in 2009 as the first Danish
shipping company
TORM is actively participating in…
Target:
6.4
2015
4.8*/**
2008
8.0
Target:
2.2
2008 2015
3.0*3.1
INDUSTRY COOPERATION AND TRANSPARENCY IS KEY TO TORM’S CORPORATE SOCIAL RESPONSIBILITY
* This figure has been revised compared to previous CSR reporting because TORM has changed the system used for generating emissions data in 2015
** Given that TORM has met its CO2 emission per vessel target for 2020, the Company will introduce a new target in the 2016 CSR Highlights