Danish tanker owner Torm has beaten the average of its rivals’ MR rates in 27 of the last 30 quarters, according to boss Jacob Meldgaard.
The company’s chief executive told TradeWinds he is proud of the team effort needed to maintain this record.
“The time charter equivalent [TCE] that we are obtaining in that business class is again this quarter higher than the average of our peers,” he said.
“And that has been the case in 27 out of 30 quarters.
“I think that proves that what we’re doing is not a coincidence. Of course, we are all dependent on the absolute market.
“I’m not better at predicting the absolute market than anybody else.”
But he argued: “I think when we look at the relatives, that we, with the same type of assets, can extract more value than other competent and professional organisations in 27 out of 30 quarters, I’m actually proud of that.”
There was a 23% increase in TCE earnings to $36,360 per day across the Torm fleet in the second quarter.
Net profit at the product tanker company was $184.3m versus $99.7m in 2022, boosted by strong markets and unrealised gains on financial instruments related to freight and bunkers of $37m.
“It’s the team and it’s the fact that we actually have an integrated platform where we own the steel, we care for the steel, we have our seafarers, they are employed by us,” Meldgaard told TradeWinds.
“They are not rented by the day. They are Torm employees, that makes a difference.”
Meldgaard himself calculated that he has overseen 54 quarterly results statements since he took the job in 2010 and is not bored yet.
Change is a constant
“There’s not been a year that’s been the same,” Meldgaard said. “Of course, there have been days that have been the same. Looking back, it’s a very volatile world that we’re in.
“We had a very satisfactory first half and the markets coming into the second half did come off a little over the summer.”
Meldgaard said rates have declined from $36,000 to $30,000 so far in the third quarter, but have actually trended up in the last two weeks.
“So we’re probably back into the mid-$30,000s for our current trading,” he said.
As of 14 August, the owner had covered 72% of 2023 earning days at $36,531 per day.
For the third quarter, the figure is $30,534 per day for 74% of days.
