TORM Sees First Quarterly Profit in Five Years

TORM will not be issuing a 2015 guidance as the results are dependent on the completion of the company's restructure agreement. 

Danish tanker company TORM A/S has posted its first profit in five years for the first quarter of 2015, the company announced Wednesday. 

The company reported a profit of $8.6 million, a turnaround from the $222.6 million loss reported this time last year. 

Revenues declined slightly to $154.2 million from $182.9 million.

Performance was said to be especially buoyed by spot rates for medium-range product carriers, the company's largest segment.

Rates rose to $25,275 per day during the quarter, an increase of 66 percent year-on-year, according to the company.

CEO Jacob Meldgaard said that the "combination of lower oil prices and wider refinery margins boosted the demand for transportation of refined oil products," while "operational performance and the new Restructuring Agreement provide a robust foundation for TORM."

The upcoming restructure will see Oaktree Capital Management become the company's dominant shareholder, and in the process will see its debt fall to $850 million from the current $1.4 billion.

The market value of TORM's entire fleet as of the end of March 2015 is only $852 million. 

TORM announced last month that it had achieved 92 percent percent lender support for the new plans, though it is continuing to push for 100 percent support. 

According to reports, the figure has now reached 94 percent. 

The company added that it would not be releasing guidance for 2015, given that the results are dependent on the completion of the restructure. 

Last year, brokerage firm Frachtcontor Junge was quoted as saying that the influx of private equity funding may be "ruining" the shipping market.