New Risk • 21h
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 21% Last year net profit margin: 39% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 14% per year for the foreseeable future. Minor Risks Dividend is not well covered by cash flows (115% cash payout ratio). Profit margins are more than 30% lower than last year (21% net profit margin). Significant insider selling over the past 3 months (kr.78m sold). Recent Insider Transactions • May 22
CEO & Executive Director recently sold kr.78m worth of stock On the 20th of May, Jacob Meldgaard sold around 379k shares on-market at roughly kr.206 per share. This transaction amounted to 100% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Jacob has been a net seller over the last 12 months, reducing personal holdings by kr.95m. Declared Dividend • May 16
First quarter dividend of US$0.70 announced Shareholders will receive a dividend of US$0.70. Ex-date: 27th May 2026 Payment date: 11th June 2026 Dividend yield will be 5.6%, which is lower than the industry average of 6.7%. Sustainability & Growth Dividend is covered by earnings (49% earnings payout ratio) but not covered by cash flows (254% cash payout ratio). The dividend has increased by an average of 10% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 53% over the next 3 years. Since a fall of 45% would increase the payout ratio to a potentially unsustainable range, the dividend may be at risk. Reported Earnings • May 15
First quarter 2026 earnings released: EPS: US$1.21 (vs US$0.64 in 1Q 2025) First quarter 2026 results: EPS: US$1.21 (up from US$0.64 in 1Q 2025). Revenue: US$402.0m (up 22% from 1Q 2025). Net income: US$122.4m (up 97% from 1Q 2025). Profit margin: 30% (up from 19% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue is expected to decline by 18% p.a. on average during the next 3 years, while revenues in the Oil and Gas industry in the United Kingdom are expected to grow by 1.7%. Over the last 3 years on average, earnings per share has fallen by 37% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Mar 13
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to kr.157, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 7x in the Oil and Gas industry in the United Kingdom. Total returns to shareholders of 7.8% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at kr.253 per share. Buy Or Sell Opportunity • Mar 05
Now 24% undervalued Over the last 90 days, the stock has risen 36% to kr.187. The fair value is estimated to be kr.245, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 5.7% over the last 3 years. Earnings per share has declined by 30%. For the next 3 years, revenue is forecast to decline by 14% per annum. Earnings are also forecast to decline by 11% per annum over the same time period. Declared Dividend • Mar 02
Fourth quarter dividend of US$0.70 announced Shareholders will receive a dividend of US$0.70. Ex-date: 11th March 2026 Payment date: 13th March 2026 Dividend yield will be 5.4%, which is lower than the industry average of 6.7%. Sustainability & Growth Dividend is covered by earnings (73% earnings payout ratio) but not covered by cash flows (274% cash payout ratio). The dividend has increased by an average of 20% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 56% over the next 3 years. Since a fall of 19% would increase the payout ratio to a potentially unsustainable range, the dividend may be at risk. Reported Earnings • Feb 27
Full year 2025 earnings released: EPS: US$2.91 (vs US$6.54 in FY 2024) Full year 2025 results: EPS: US$2.91 (down from US$6.54 in FY 2024). Revenue: US$1.34b (down 14% from FY 2024). Net income: US$285.3m (down 53% from FY 2024). Profit margin: 21% (down from 39% in FY 2024). The decrease in margin was primarily driven by lower revenue. Revenue is expected to decline by 16% p.a. on average during the next 3 years, while revenues in the Oil and Gas industry in the United Kingdom are expected to grow by 2.6%. Over the last 3 years on average, earnings per share has fallen by 30% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Jan 08
Investor sentiment improves as stock rises 14% After last week's 14% share price gain to kr.145, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 5x in the Oil and Gas industry in the United Kingdom. Total returns to shareholders of 34% over the past three years. Board Change • Jan 08
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Non-Executive Independent Director Annette Beate Wacknitz Justad was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Jan 07
TORM plc Announces Departure of Deputy Chairman and Senior Independent Director David Weinstein and Board Structure Changes, Effective January 6, 2026 TORM plc announced that as the ownership stake held by Oaktree Capital Management, L.P. and its affiliates is now below the one-third threshold, the position and authority of the B-Director is extinguished. As a result, Deputy Chairman and Senior Independent Director, David Weinstein, will leave the Board effective as of January 6, 2026. Upon his departure from the Board, the Company has retained Mr. Weinstein in an ongoing capacity as a Special Advisor to the Board. The limitations on TORM plc's actions set out in Article 137 stop having effect immediately at the threshold date and no approvals will be needed other than any provided under the legislation for any reserved matter after that time. The B- and C-shares are in the process of being redeemed and cancelled in accordance with the Articles and no further B- or C-shares can then be issued. The C-share right to vote 350,000,000 shares has ceased as from the threshold date. The right of the B-share to one vote continues until it is redeemed. Therefore, from the threshold date, the voting rights are 101,332,707 A-shares and one B-share, each with one vote per share. After the redemption/cancellation, TORM plc's share capital will amount to USD 1,013,327.07 dividend into 101,332,707 A-shares of USD 0.01 each. Announcement • Dec 24
Hafnia Limited (OB:HAFNI) completed the acquisition of 13.97% stake in TORM plc (CPSE:TRMD A) from Oaktree Capital Management, L.P. and and its affiliates. Hafnia Limited (OB:HAFNI) enters into a preliminary agreement to acquire 14.45% stake in TORM plc (CPSE:TRMD A) from Oaktree Capital Management, L.P. and and its affiliates for approximately $310 million on September 3, 2025. Hafnia Limited entered into a binding share purchase agreement to acquire 14.45% stake in TORM plc on September 11, 2025. A cash consideration valued at $22 per share will be paid by Hafnia Limited.
The Announcement notes that completion of the Share Purchase is subject to entry into a definitive agreement and the fulfilment of customary conditions precedent, including among others, obtaining any required regulatory clearances and approvals, the satisfaction of certain covenants, The appointment of a new independent board chairman of TORM and approval of the Transaction by the Administrative Council for Economic Defense (Conselho Administrativo de Defesa Econômica – CADE) in Brazil.
As of December 18, 2025, all conditions precedent required for the completion of Hafnia’s acquisition of approximately 14.1 million A-shares in TORM plc have been satisfied. Since September 11, 2025, TORM has announced to have increased its issued share capital by 3,380,278 new A-shares. Consequently, Hafnia’s acquisition of approximately 14.1 million A-shares will represent approximately 13.97% of TORM’s issued share capital as per the date hereof. Upon completion, Hafnia will hold approximately 13.97% of the issued share capital of TORM.
Completion of the acquisition is expected to take place shortly.
Dan Schuster-Woldan, Matthew Hearn, Ross Ferguson, Christopher J. Cummings, Deeksha Rathi of Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal advisor to Oaktree Capital Management, L.P., and its affiliates in the sale of stake in TORM. Henrik Laursen, Janus Jepsen, Peter E. Stassen, Lise Aaby Nielsen, Lynge Daugaard Jensen of Plesner Advokatpartnerselskab acted as legal advisor to Hafnia Limited.
Hafnia Limited (OB:HAFNI) completed the acquisition of 13.97% stake in TORM plc (CPSE:TRMD A) from Oaktree Capital Management, L.P. and and its affiliates on December 22, 2025. Recent Insider Transactions • Dec 23
CEO & Executive Director recently sold kr.17m worth of stock On the 19th of December, Jacob Meldgaard sold around 132k shares on-market at roughly kr.128 per share. This transaction amounted to 100% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was Jacob's only on-market trade for the last 12 months. Announcement • Dec 20
TORM plc, Annual General Meeting, Apr 15, 2026 TORM plc, Annual General Meeting, Apr 15, 2026. Declared Dividend • Nov 09
Third quarter dividend of US$0.62 announced Shareholders will receive a dividend of US$0.62. Ex-date: 19th November 2025 Payment date: 21st November 2025 Dividend yield will be 6.7%, which is about the same as the industry average. Sustainability & Growth Dividend is not covered by earnings (180% earnings payout ratio) nor is it covered by cash flows (203% cash payout ratio). The dividend has increased by an average of 23% per year over the past 9 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 100% to bring the payout ratio under control. However, EPS is expected to decline by 57% over the next 2 years, which means the dividend may need to be reduced to reach a sustainable payout ratio. Reported Earnings • Nov 07
Third quarter 2025 earnings released: EPS: US$0.79 (vs US$1.38 in 3Q 2024) Third quarter 2025 results: EPS: US$0.79 (down from US$1.38 in 3Q 2024). Revenue: US$342.6m (down 7.9% from 3Q 2024). Net income: US$77.6m (down 41% from 3Q 2024). Profit margin: 23% (down from 35% in 3Q 2024). The decrease in margin was primarily driven by higher expenses. Revenue is expected to decline by 28% p.a. on average during the next 3 years, while revenues in the Oil and Gas industry in the United Kingdom are expected to grow by 2.5%. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Declared Dividend • Aug 18
Second quarter dividend of US$0.40 announced Shareholders will receive a dividend of US$0.40. Ex-date: 21st August 2025 Payment date: 25th August 2025 Dividend yield will be 12%, which is higher than the industry average of 6.7%. Sustainability & Growth Dividend is covered by earnings (76% earnings payout ratio) but not covered by cash flows (221% cash payout ratio). The dividend has increased by an average of 23% per year over the past 9 years. However, payments have been volatile during that time. EPS is expected to decline by 38% over the next year. Since a fall of 15% would increase the payout ratio to a potentially unsustainable range, the dividend may be at risk. Reported Earnings • Aug 14
Second quarter 2025 earnings released: EPS: US$0.60 (vs US$2.08 in 2Q 2024) Second quarter 2025 results: EPS: US$0.60 (down from US$2.08 in 2Q 2024). Revenue: US$315.2m (down 28% from 2Q 2024). Net income: US$58.6m (down 70% from 2Q 2024). Profit margin: 19% (down from 44% in 2Q 2024). The decrease in margin was primarily driven by lower revenue. Revenue is expected to decline by 26% p.a. on average during the next 2 years, while revenues in the Oil and Gas industry in the United Kingdom are expected to grow by 13%. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Announcement • Jun 04
TORM plc (CPSE:TRMD A) acquired remaining 25% stake in ME Production A/S from Jens Peter Faldt. TORM plc (CPSE:TRMD A) acquired remaining 25% stake in ME Production A/S from Jens Peter Faldt on June 3, 2025.
TORM plc (CPSE:TRMD A) Completed the acquisition of remaining 25% stake in ME Production A/S from Jens Peter Faldt on June 3, 2025. Reported Earnings • May 09
First quarter 2025 earnings released: EPS: US$0.64 (vs US$2.34 in 1Q 2024) First quarter 2025 results: EPS: US$0.64 (down from US$2.34 in 1Q 2024). Revenue: US$329.1m (down 26% from 1Q 2024). Net income: US$62.3m (down 70% from 1Q 2024). Profit margin: 19% (down from 47% in 1Q 2024). The decrease in margin was primarily driven by lower revenue. Revenue is forecast to decline by 27% p.a. on average during the next 2 years, while revenues in the Oil and Gas industry in the United Kingdom are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Recent Insider Transactions • Apr 04
Non-Executive Independent Director recently sold kr.308k worth of stock On the 1st of April, Annette Beate Wacknitz Justad sold around 3k shares on-market at roughly kr.114 per share. This transaction amounted to 100% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of kr.60m more than they bought in the last 12 months. Upcoming Dividend • Mar 12
Upcoming dividend of US$0.60 per share Eligible shareholders must have bought the stock before 19 March 2025. Payment date: 02 April 2025. Payout ratio is a comfortable 74% but the company is paying out more than the cash it is generating. Trailing yield: 33%. Within top quartile of British dividend payers (6.1%). Higher than average of industry peers (5.2%). Buy Or Sell Opportunity • Mar 11
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 17% to kr.117. The fair value is estimated to be kr.147, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 24% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to decline by 41% in 2 years. Earnings are forecast to decline by 48% in the next 2 years. Reported Earnings • Mar 06
Full year 2024 earnings released: EPS: US$6.54 (vs US$7.75 in FY 2023) Full year 2024 results: EPS: US$6.54 (down from US$7.75 in FY 2023). Revenue: US$1.56b (up 2.6% from FY 2023). Net income: US$612.5m (down 5.5% from FY 2023). Profit margin: 39% (down from 43% in FY 2023). The decrease in margin was driven by higher expenses. Revenue is expected to fall by 28% p.a. on average during the next 2 years compared to a 1.3% decline forecast for the Oil and Gas industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has only increased by 36% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jan 20
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to kr.140, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 6x in the Oil and Gas industry in the United Kingdom. Total returns to shareholders of 436% over the past three years. Declared Dividend • Nov 09
Third quarter dividend of US$1.20 announced Shareholders will receive a dividend of US$1.20. Ex-date: 20th November 2024 Payment date: 4th December 2024 Dividend yield will be 19%, which is higher than the industry average of 6.7%. Sustainability & Growth Dividend is covered by earnings (73% earnings payout ratio) but not covered by cash flows (178% cash payout ratio). The dividend has increased by an average of 28% per year over the past 8 years. However, payments have been volatile during that time. EPS is expected to decline by 47% over the next 2 years. Since a fall of 19% would increase the payout ratio to a potentially unsustainable range, the dividend may be at risk. Reported Earnings • Nov 08
Third quarter 2024 earnings released: EPS: US$1.38 (vs US$1.47 in 3Q 2023) Third quarter 2024 results: EPS: US$1.38. Revenue: US$372.1m (up 3.9% from 3Q 2023). Net income: US$130.5m (up 5.0% from 3Q 2023). Profit margin: 35% (in line with 3Q 2023). Revenue is expected to fall by 19% p.a. on average during the next 3 years compared to a 1.9% decline forecast for the Oil and Gas industry in the United Kingdom. Announcement • Nov 08
TORM plc, Annual General Meeting, Apr 16, 2025 TORM plc, Annual General Meeting, Apr 16, 2025. Recent Insider Transactions • Oct 09
CEO & Executive Director recently sold kr.58m worth of stock On the 4th of October, Jacob Meldgaard sold around 261k shares on-market at roughly kr.223 per share. This transaction amounted to 100% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Jacob has been a net seller over the last 12 months, reducing personal holdings by kr.167m. Upcoming Dividend • Aug 22
Upcoming dividend of US$1.80 per share Eligible shareholders must have bought the stock before 28 August 2024. Payment date: 30 August 2024. Payout ratio is on the higher end at 76%, and the cash payout ratio is above 100%. Trailing yield: 15%. Within top quartile of British dividend payers (5.5%). Higher than average of industry peers (4.6%). Declared Dividend • Aug 17
Second quarter dividend of US$1.80 announced Shareholders will receive a dividend of US$1.80. Ex-date: 28th August 2024 Payment date: 30th August 2024 Dividend yield will be 12%, which is higher than the industry average of 6.7%. Sustainability & Growth Dividend is covered by earnings (71% earnings payout ratio) but not covered by cash flows (128% cash payout ratio). The dividend has increased by an average of 28% per year over the past 8 years. However, payments have been volatile during that time. EPS is expected to decline by 67% over the next 3 years. Since a fall of 21% would increase the payout ratio to a potentially unsustainable range, the dividend may be at risk. Reported Earnings • Aug 16
Second quarter 2024 earnings released: EPS: US$2.08 (vs US$2.23 in 2Q 2023) Second quarter 2024 results: EPS: US$2.08. Revenue: US$437.7m (up 14% from 2Q 2023). Net income: US$194.5m (up 4.7% from 2Q 2023). Profit margin: 44% (down from 48% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to decline by 19% p.a. on average during the next 3 years, while revenues in the Oil and Gas industry in the United Kingdom are expected to remain flat. Announcement • May 31
TORM plc has filed a Follow-on Equity Offering. TORM plc has filed a Follow-on Equity Offering.
Security Name: Class A Common Shares
Security Type: Common Stock
Securities Offered: 6,896,552 New Risk • May 13
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 47% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 19% per year for the foreseeable future. Minor Risks High level of debt (47% net debt to equity). Dividend is not well covered by cash flows (184% cash payout ratio). Shareholders have been diluted in the past year (13% increase in shares outstanding). Declared Dividend • May 12
First quarter dividend of US$1.50 announced Shareholders will receive a dividend of US$1.50. Ex-date: 21st May 2024 Payment date: 4th June 2024 Dividend yield will be 13%, which is higher than the industry average of 6.7%. Sustainability & Growth Dividend is covered by earnings (70% earnings payout ratio) but not covered by cash flows (226% cash payout ratio). The dividend has increased by an average of 28% per year over the past 8 years. However, payments have been volatile during that time. EPS is expected to decline by 67% over the next 3 years. Since a fall of 22% would increase the payout ratio to a potentially unsustainable range, the dividend may be at risk. Reported Earnings • May 08
First quarter 2024 earnings released: EPS: US$2.34 (vs US$1.88 in 1Q 2023) First quarter 2024 results: EPS: US$2.34 (up from US$1.88 in 1Q 2023). Revenue: US$444.1m (up 14% from 1Q 2023). Net income: US$209.7m (up 37% from 1Q 2023). Profit margin: 47% (up from 39% in 1Q 2023). Revenue is forecast to decline by 19% p.a. on average during the next 3 years, while revenues in the Oil and Gas industry in the United Kingdom are expected to remain flat. Over the last 3 years on average, earnings per share has increased by 91% per year but the company’s share price has only increased by 66% per year, which means it is significantly lagging earnings growth. Announcement • Apr 11
TORM plc Approves a Final Dividend for the Year Ended 31 December 2023 TORM plc approved a final dividend of USD 1.36 per A-share for the year ended 31 December 2023. Upcoming Dividend • Apr 08
Upcoming dividend of US$1.36 per share Eligible shareholders must have bought the stock before 15 April 2024. Payment date: 24 April 2024. Payout ratio is a comfortable 75% but the company is paying out more than the cash it is generating. Trailing yield: 16%. Within top quartile of British dividend payers (6.1%). Higher than average of industry peers (4.4%). Announcement • Mar 08
TORM plc Provides Earnings Guidance for the Year 2024 TORM plc provided earnings guidance for the year 2024. For the full year 2024, TCE earnings are expected to be in the range of USD 1.0 billion – 1.35 billion. Reported Earnings • Mar 07
Full year 2023 earnings released: EPS: US$7.75 (vs US$6.92 in FY 2022) Full year 2023 results: EPS: US$7.75 (up from US$6.92 in FY 2022). Revenue: US$1.52b (up 5.3% from FY 2022). Net income: US$648.3m (up 15% from FY 2022). Profit margin: 43% (up from 39% in FY 2022). Revenue is expected to fall by 21% p.a. on average during the next 3 years compared to a 1.6% decline forecast for the Oil and Gas industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 97% per year but the company’s share price has only increased by 63% per year, which means it is significantly lagging earnings growth. Announcement • Mar 07
TORM plc Recommends Final Dividend for the Financial Year Ended 31 December 2023, Payable on 24 April 2024 According to the TORM plc’s Distribution Policy, the Company intends to declare a quarterly dividend based on the cash position at the end of each quarter. The Board is recommending a final dividend for the financial year ended 31 December 2023 of USD 1.36 per A-share. When taking into account share issuances that are expected to take place prior to the dividend record date, this is expected to equate to an aggregate dividend payment of USD 126.3 million. This dividend is expected to be paid on 24 April 2024 to all shareholders appearing on the register of members as of 16 April 2024. The payment of the dividend is not conditional on the proposed Capital Reduction. Announcement • Jan 19
TORM plc has completed a Follow-on Equity Offering in the amount of $19.100624 million. TORM plc has completed a Follow-on Equity Offering in the amount of $19.100624 million.
Security Name: Class A shares
Security Type: Common Stock
Securities Offered: 616,746
Price\Range: $30.97 Recent Insider Transactions • Nov 17
CEO & Executive Director recently sold kr.211m worth of stock On the 14th of November, Jacob Meldgaard sold around 507k shares on-market at roughly kr.416 per share. This transaction amounted to 99% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was Jacob's only on-market trade for the last 12 months. Upcoming Dividend • Nov 14
Upcoming dividend of US$1.46 per share at 19% yield Eligible shareholders must have bought the stock before 21 November 2023. Payment date: 23 November 2023. Payout ratio is on the higher end at 84%, and the cash payout ratio is above 100%. Trailing yield: 19%. Within top quartile of British dividend payers (6.4%). Higher than average of industry peers (6.5%). New Risk • Nov 13
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 3.4% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 13% per year for the foreseeable future. Minor Risks High level of debt (54% net debt to equity). Dividend is not well covered by cash flows (104% cash payout ratio). Shareholders have been diluted in the past year (3.4% increase in shares outstanding). Announcement • Nov 12
Torm plc Revises Earnings Guidance for the Full-Year 2023 TORM plc revised earnings guidance for the full-year 2023. For the year, TCE earnings are expected to be in the range of USD 1,075 million -1,125 million (previous outlook: USD 1,050 million -1,175 million). Announcement • Nov 11
TORM plc Approves Interim Dividend for the Third Quarter of 2023, Payable on 05 December 2023 TORM plc Board of Directors has approved an interim dividend for Third Quarter 2023 of USD 1.46 per share, resulting in an expected total dividend payment of USD 123.2m. The payment date is 05 December 2023 while the ex-dividend date is 21 November 2023, and the record date is 22 November 2023. Reported Earnings • Nov 10
Third quarter 2023 earnings released Third quarter 2023 results: Revenue: US$358.1m (down 20% from 3Q 2022). Net income: US$124.3m (down 43% from 3Q 2022). Profit margin: 35% (down from 48% in 3Q 2022). The decrease in margin was primarily driven by lower revenue. Revenue is expected to fall by 25% p.a. on average during the next 3 years compared to a 1.8% decline forecast for the Oil and Gas industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 86% per year but the company’s share price has only increased by 65% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Oct 31
Now 21% undervalued Over the last 90 days, the stock is up 27%. The fair value is estimated to be kr.271, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 34% over the last 3 years. Earnings per share has grown by 69%. Revenue is forecast to decline by 41% in 2 years. Earnings is forecast to decline by 52% in the next 2 years. New Risk • Aug 18
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 55% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 42% per year for the foreseeable future. Minor Risks High level of debt (55% net debt to equity). Dividend is not well covered by cash flows (116% cash payout ratio). Reported Earnings • Aug 18
Second quarter 2023 earnings released: EPS: US$2.23 (vs US$1.31 in 2Q 2022) Second quarter 2023 results: EPS: US$2.23 (up from US$1.31 in 2Q 2022). Revenue: US$384.3m (up 14% from 2Q 2022). Net income: US$185.8m (up 74% from 2Q 2022). Profit margin: 48% (up from 32% in 2Q 2022). The increase in margin was primarily driven by lower expenses. Revenue is expected to fall by 30% p.a. on average during the next 3 years compared to a 2.6% decline forecast for the Oil and Gas industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 69% per year but the company’s share price has only increased by 54% per year, which means it is significantly lagging earnings growth. Board Change • Jun 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 8 experienced directors. No highly experienced directors. Employee Representative Board Observer Christian Gorrissen was the last director to join the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Upcoming Dividend • May 15
Upcoming dividend of US$1.46 per share at 16% yield Eligible shareholders must have bought the stock before 22 May 2023. Payment date: 06 June 2023. Payout ratio is a comfortable 67% and this is well supported by cash flows. Trailing yield: 16%. Within top quartile of British dividend payers (5.9%). Higher than average of industry peers (6.1%). Announcement • May 12
TORM plc Reaffirms Earnings Guidance for the Year 2023 TORM plc reaffirmed earnings guidance for the year 2023. For the full year 2023, the company earnings are expected to be in the range of USD 1,025 million to USD 1,375 million (unchanged from the outlook released on 16 March 2023). Reported Earnings • May 12
First quarter 2023 earnings released: EPS: US$1.87 (vs US$0.13 in 1Q 2022) First quarter 2023 results: EPS: US$1.87 (up from US$0.13 in 1Q 2022). Revenue: US$390.2m (up 86% from 1Q 2022). Net income: US$153.6m (up US$143.2m from 1Q 2022). Profit margin: 39% (up from 5.0% in 1Q 2022). The increase in margin was driven by higher revenue. Revenue is expected to fall by 26% p.a. on average during the next 3 years compared to a 2.7% decline forecast for the Oil and Gas industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 44% per year but the company’s share price has increased by 55% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 11
TORM plc Approves an Interim Dividend for First Quarter 2023, Payable on 6 June 2023 TORM plc's board of directors has approved an interim dividend for first quarter 2023 of USD 1.46 per share, resulting in an expected total dividend payment of USD 121.1 million. The payment is expected on 6 June 2023, with ex-dividend date on 22 May 2023 and record date on 23 May 2023. Valuation Update With 7 Day Price Move • Apr 17
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to kr.233, the stock trades at a forward P/E ratio of 5x. Average forward P/E is 4x in the Oil and Gas industry in the United Kingdom. Total returns to shareholders of 488% over the past three years. Valuation Update With 7 Day Price Move • Mar 30
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to kr.197, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 4x in the Oil and Gas industry in the United Kingdom. Total returns to shareholders of 370% over the past three years. Reported Earnings • Mar 17
Full year 2022 earnings released Full year 2022 results: Revenue: US$1.44b (up 133% from FY 2021). Net income: US$562.8m (up US$604.8m from FY 2021). Profit margin: 39% (up from net loss in FY 2021). The move to profitability was driven by higher revenue. Revenue is expected to fall by 26% p.a. on average during the next 3 years compared to a 4.5% decline forecast for the Oil and Gas industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 39% per year but the company’s share price has increased by 70% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jan 28
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to kr.161, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 4x in the Oil and Gas industry in the United Kingdom. Total returns to shareholders of 188% over the past three years. Upcoming Dividend • Nov 16
Upcoming dividend of US$1.46 per share Eligible shareholders must have bought the stock before 22 November 2022. Payment date: 08 December 2022. Payout ratio is a comfortable 51% and this is well supported by cash flows. Trailing yield: 11%. Within top quartile of British dividend payers (5.7%). Higher than average of industry peers (6.8%). Reported Earnings • Nov 13
Third quarter 2022 earnings released Third quarter 2022 results: Revenue: US$448.1m (up 188% from 3Q 2021). Net income: US$217.1m (up US$231.8m from 3Q 2021). Profit margin: 48% (up from net loss in 3Q 2021). The move to profitability was driven by higher revenue. Revenue is expected to fall by 22% p.a. on average during the next 3 years compared to a 6.5% decline forecast for the Oil and Gas industry in the United Kingdom. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 117 percentage points per year, which is a significant difference in performance. 
