Torm’s first-half strength has boosted the company’s confidence as it heads into the back half of the year.
The Copenhagen-based product tanker owner said on Thursday that it has 68% of its total 2024 revenue days booked at $42,205 per day, slightly better than its second-quarter average of $42,057 per day, and good enough for the company to pull up the baseline of its full-year guidance.
Torm is now expecting to earn at least $1.15bn in time charter equivalent revenue, up from $1.1bn with $1.35bn remaining at the high end.
“Our strong performance continued in the second quarter, building on the positive momentum from previous quarters,” chief executive Jacob Meldgaard said.
For the quarter, Torm recorded $194m in profit, up from $185m for the same period in 2023.
TCE revenue came in at $326m, rising from $308m year on year with that figure including unrealised gains on derivatives of $37m.
Its 21 LR2s earned $51,907 per day in the second quarter, with its 10 LR1s bringing in $42,338 per day and its 58 MRs $38,465 per day.
So far in the third quarter, Torm has booked 75% of its LR2 days at $45,332 per day.
Half of its LR1 days are accounted for at $36,324 per day and 63% of its MR days at $35,701 per day.
The company attributed the second-quarter market strength to rerouting around the Cape of Good Hope as large numbers of commercial ships avoid the Red Sea and potential attacks from Houthi militants.
It said fleet growth was at a “manageable level” during the quarter.
LR2s saw less volatility pushing rates down relative to the first quarter, but said its sizeable MR fleet saw higher volumes due to higher exports from the US Gulf and Far East.
Torm also mentioned its fleet is expected to swell to 96 vessels in the second half, as it takes delivery of seven more MRs following the confirmation of an eight-ship buy last month.
The first of the bloc has since been delivered. The remaining vessels will enter the fleet sometime in the next six months.
