TORM signed an agreement to purchase 2 fuel-efficient and high-specification MR resale vessels of 50,000 dwt, currently under construction at the Korean yard Hyundai Mipo to be delivered later this quarter. The company already has 12 Hyundai Mipo vessels in the fleet. TORM has bought a total of 6 MR vessels for a total consideration of USD 185 million during the 3rd Q of 2017 and has further newbuilding options for 10 product tankers.
As of today, TORM has CAPEX commitments of USD 312 million covering the remaining CAPEX on TORM’s 4 LR2 vessels with expected delivery in 2017 and 2018 and 6 MR vessels with expected delivery in 2017 and 2019. TORM’s undrawn credit facilities and cash today amount to approximately USD 467 million.
► Jacob Meldgaard, executive director, said:
“I am pleased that TORM’s strong capital structure allows us to act when we see attractive opportunities to grow the fleet. With these two MR resales delivering in Q3 2017, we have acquired a total of six new highquality product tankers over the last few weeks. We believe that asset prices are at a cyclical low and that our purchase prices are attractive. Therefore, the timing is right for growing and renewing our fleet.”
TORM, founded in 1889 and listed on Nasdaq Copenhagen (Jacob Meldgaard, CEO & executive director), is one of the world’s leading carriers of refined oil products. The company operates a fleet of approximately 80 vessels. TORM’s offices are located in Copenhagen, Houston, London, Manila, Mumbai and Singapore and employs approximately 3,000 seafarers and 275 land-based staff.