World News
TORM Loss Increases in 2012
Danish shipping firm TORM A/S (TORM) [NASDAQ:TRMD] says it lost $581 million in 2012, but more than half of that figure was due to impairment charges and the effects of restructuring.
The company had revenues of $1.2 billion for the year after losing $451 million on revenues of $1.3 billion in 2011.
"2012 proved challenging for shipping in general and in particular TORM faced uncertainty for a prolonged period," said Chairman of the Board Flemming Ipsen.
"On a positive note, TORM succeeded in achieving a financial restructuring, which brings stability to the Company for the coming period."
TORM announced in October that it had completed the restructuring agreement, which provided it with new working capital facility of $100 million, extended its existing $1.8 billion bank debt through the end of 2016, and reorganized its contracts with charterers.
The 2012 results included restructuring costs of $210 million and impairment losses of $116 million.
Beyond the restructuring, the company said it was hurt by low freight rates and tonnage oversupply in the product tanker market tied to global economic issues, as well as volatility and pressure in dry bulk rates.
"The Bulk Division experienced a high number of waiting days in 2012 due to the Company's challenging financial situation," TORM said.
Looking ahead, for 2013 TORM said it forecasts a loss before tax of $100-150 million before potential vessel sales and impairment charges, but expects to remain in compliance with its financial covenants for the year.
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| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
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| Rotterdam | 512.50 | 2.00 | 653.00 | 2.00 |
| Houston | 548.00 | 3.00 | 671.00 | 0.00 |
| Fujairah | 549.00 | 6.00 | 747.00 | 0.00 |
| Global 20 Ports Average | 577.50 | 3.50 | 749.50 | 1.50 |
| Global 4 Ports Average | 542.50 | 3.50 | 685.00 | 0.50 |
| Global Average Bunker Price | 628.50 | 1.50 | 800.50 | 1.00 |
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