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30 November 2015 “I am very pleased that TORM has utilized its long-term relationship with Guangzhou Shipyard International to enter into an agreement to purchase four LR2 newbuildings with an option for an additional six vessels. Given the market outlook, we see this as an attractive way to grow and renew our LR2 fleet at a favorable price”, says CEO Jacob Meldgaard. TORM has today entered into an agreement to purchase four fuel-efficient LR2 newbuildings from Guangzhou Shipyard International (“GSI”) with expected delivery in the period between the fourth quarter of 2017 and the second quarter of 2018. The agreement includes the option to purchase up to six additional vessels within the LR2, LR1 or MR segment with expected delivery in 2018 and 2019. TORM has utilized its long-term relationship with GSI and China State Shipbuilding Corporation to source the contract. TORM already has 16 GSI vessels in the current fleet and has good technical and commercial experience with these vessels. The vessels will be constructed according to TORM’s specifications in order to optimize trading. This is TORM’s first ordering of newbuildings since 2008. TORM expects to have a total CAPEX relating to the four firm vessels of approximately USD 200m including extra costs related to TORM’s design requirements and supervision. TORM is in advanced dialogue with potential lenders in order to obtain financing for the newbuildings. With this agreement, TORM has CAPEX commitments of USD 273m covering the remaining CAPEX on TORM’s remaining three MR newbuildings, one second-hand MR vessel and the four new LR2 vessels. TORM has a liquidity position of approximately USD 280m including available debt facilities of USD 97m. About TORM TORM is one of the world’s leading carriers of refined oil products. The Company operates a fleet of approximately 80 modern vessels with a strong 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 Copenhagen (ticker: TORM A). For further information, please visit www.torm.com TORM, press release |
