TORM sells two bulk newbuilding contracts

23 December 2011

TORM has entered into an agreement to sell two Kamsarmax bulk newbuilding contracts. The two vessels contracted in 2007 were scheduled for delivery in the fourth quarter of 2012 and the first quarter of 2013 respectively. The agreement has a positive cash impact of USD 21 million in January 2012 and it will reduce the remaining CAPEX requirements by USD 42 million. The transaction leads to a P&L loss of approximately USD 41 million which will be recognised in the financial statements in the fourth quarter of 2011.

"The sale reflects our cautious view on the dry bulk market going forward, and it fits well into the Company’s overall plan to preserve cash and reduce debt,” says CFO Roland M. Andersen.

As a consequence, TORM revises its forecast for the full year 2011 from an expected loss before tax of USD 190-210 million to an expected loss before tax of approximately USD 230-250 million.

Following the transaction, TORM has three product tankers remaining in the order book and instalments related hereto of USD 83 million.

About TORM
TORM is one of the world’s leading carriers of refined oil products as well as a significant player in the dry bulk market. The Company runs a fleet of approximately 165 modern vessels in cooperation with other respected shipping companies sharing TORM’s commitment to safety, environmental responsibility and customer service. TORM was founded in 1889. The Company conducts business worldwide and is headquartered in Copenhagen, Denmark. TORM’s shares are listed on NASDAQ OMX Copenhagen (ticker: TORM) and on NASDAQ in New York (ticker: TRMD). For further information, please visit www.torm.com.

TORM, press release