TORM cancels one MR product tanker

16 March 2012

TORM has entered into an agreement to cancel one MR product tanker newbuilding, which was scheduled for delivery in the second quarter of 2014. The parties have agreed not to disclose the terms.

“With this agreement, TORM's order book is empty. A substantial reduction in CAPEX commitments has been a key element towards the Company's long-term financial solution,” says CFO Roland M. Andersen.

The effects of the transaction will be recognized in the financial statements in the first quarter of 2012 and lead to a P&L loss of approx. USD 2 million. It does not have any short-term cash impact. Following the cancellation, TORM’s owned fleet consists of 66.5 product tankers and two dry bulk vessels and TORM does not have any newbuildings on order.

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 160 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