Profit before tax amounted to $1.1 mill, compared to $4.8 mill in the same period of last year. Cash flow from operating activities was positive with $18 mill in 1Q18, compared with $27 mill in 1Q17.
TORM achieved daily TCE rates of $14,225 in 1Q18, compared with $15,264 per day in 1Q17. In the first quarter of this year, product tanker freight rates stayed relatively flat at levels slightly below those seen in the second half of 2017, the company said.
As of 31st March, 2018, 13% of the remaining earning days in 2018 were covered at $18,152 per day and as of 11th May, 2018, 61% of the remaining earning days in the second quarter of 2018 were covered at $14,244 per day.
During the period, TORM completed an equity raise of $100 mill in order to pursue accretive growth opportunities while maintaining the strength of the balance sheet.
Subsequent to the balance sheet date, TORM exercised options for the construction of three high specification MR newbuildings for a total commitment of $93 mill with expected delivery in 2019 through the first quarter of 2020 and secured commitment for attractive vessel financing of up to $63 mill, subject to loan documentation.
TORM also took delivery of two LR2 newbuildings in 1Q18 followed by a a third LR2 after the balance sheet date.
As at the end of the quarter, TORM’s available liquidity was $465 mill, consisting of $174 mill in cash and $292 mill in undrawn credit facilities. As of the same date, net interest-bearing debt amounted to $577 mill.
TORM’s orderbook stood at eight newbuildings - two LR2s, four MRs and two LR1s all from Guangzhou Shipyard International. Subsequently, TORM has firmed up newbuilding options for an additional three MRs and took delivery of one LR2 in April, 2018.
The LR2s are expected to be delivered in 2018 and the MRs and the LR1s in 2019 throughout the first quarter of 2020. Outstanding capex relating to the orderbook and vessel purchases amounted to $242 mill, excluding the three MR newbuildings agreed in April, 2018.
“We remained profitable in the first quarter of 2018, despite a muted freight rate environment, as the One TORM platform continues to deliver strong commercial results.
“In January, TORM successfully completed a $100 mill equity raise, which allowed us to execute on our fleet investment plan. The strong balance sheet and financial flexibility provided us the capacity to exercise options on three high specification MR newbuildings at historically attractive prices during April,” explained executive director, Jacob Meldgaard.