TRMD · TORM plc

TORM plc reported a strong first quarter of 2026, driven by a sharp increase in freight rates due to geopolitical tensions, particularly the US-Iran conflict and closure of the Strait of Hormuz. Revenue rose to $402m from $329m in Q1 2025, and TCE earnings increased 34% to $286m. EBITDA reached $201m, including $5m unrealized losses on financial instruments, compared to $136m in the prior year. Net profit nearly doubled to $122m. Fleet-wide TCE rates averaged $34,937/day, up 30% year-over-year, with LR2 vessels achieving $41,062/day. The company upgraded its full-year 2026 guidance, now expecting TCE earnings of $1,150-1,450m and EBITDA of $800-1,100m, reflecting strong coverage and record April rates. Management highlighted consistent execution and selective fleet renewal, including six MR resale vessels. An interim dividend of $0.70 per share was declared, representing a 58% payout ratio. The balance sheet remains solid with net asset value of $3,036m and a net loan-to-value ratio of 25.1%.