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Dec 31, 2024
Torm PLC Q4 2024 Earnings Report
Torm PLC reported a decline in earnings and profitability in Q4 2024 amid market volatility.
Key Takeaways
Torm PLC posted Q4 2024 revenue of $214.7 million, down from $266.4 million in the previous year due to market volatility and changing demand patterns. Net income fell to $77.4 million from $184.6 million in Q4 2023. EBITDA decreased to $142.2 million from $234.3 million in the prior year, reflecting lower tanker rates. The company declared a dividend of $0.60 per share for the quarter, representing a 75% payout ratio.
Revenue declined to $214.7 million from $266.4 million due to weaker tanker market conditions.
Net income fell to $77.4 million, a sharp decrease from $184.6 million in Q4 2023.
EBITDA dropped to $142.2 million from $234.3 million, impacted by lower time charter equivalent (TCE) rates.
Declared a $0.60 per share dividend, reflecting a 75% payout ratio.
Forward Guidance
Torm PLC expects a challenging 2025, with lower projected earnings due to weaker market conditions and potential geopolitical disruptions.
Positive Outlook
- Fleet optimization strategy to improve operational efficiency.
- Maintaining a disciplined capital allocation approach.
- Potential for demand recovery in H2 2025.
- Continued focus on shareholder returns via dividends.
- Limited fleet growth expected to support the supply-demand balance.
Challenges Ahead
- Projected TCE earnings decline to $650-$950 million from $1,135 million in 2024.
- EBITDA forecasted at $350-$650 million, down from $851 million in 2024.
- 73% of 2025 earning days remain unfixed, leading to uncertainty.
- Geopolitical tensions may impact global trade routes.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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