Declared Dividend • May 15
First quarter dividend increased to US$0.70 Dividend of US$0.70 is 75% higher than last year. Ex-date: 28th May 2026 Payment date: 11th June 2026 Dividend yield will be 7.6%, which is higher than the industry average of 4.5%. 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 57% 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 14
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 US are expected to grow by 3.6%. 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. Buy Or Sell Opportunity • Apr 14
Now 22% undervalued Over the last 90 days, the stock has risen 27% to US$29.50. The fair value is estimated to be US$37.93, 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 17% per annum over the same time period. Valuation Update With 7 Day Price Move • Mar 12
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to US$24.64, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 14x in the Oil and Gas industry in the US. Total returns to shareholders of 23% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$38.09 per share. Declared Dividend • Mar 02
Fourth quarter dividend of US$0.70 announced Shareholders will receive a dividend of US$0.70. Ex-date: 12th March 2026 Payment date: 25th March 2026 Dividend yield will be 6.9%, which is higher than the industry average of 4.5%. Sustainability & Growth Dividend is covered by earnings (73% earnings payout ratio) but not covered by cash flows (114% 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 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 18% p.a. on average during the next 3 years, while revenues in the Oil and Gas industry in the US are expected to grow by 4.1%. 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 7% per year, which means it has not declined as severely as earnings. Price Target Changed • Jan 29
Price target increased by 14% to US$27.00 Up from US$23.67, the current price target is an average from 3 analysts. New target price is 11% above last closing price of US$24.30. Stock is up 22% over the past year. The company is forecast to post earnings per share of US$2.88 for next year compared to US$6.54 last year. 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. Tillkännagivande • 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. Tillkännagivande • 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 US$2.6m worth of stock On the 19th of December, Jacob Meldgaard sold around 132k shares on-market at roughly US$20.03 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. Tillkännagivande • Dec 20
TORM plc, Annual General Meeting, Apr 15, 2026 TORM plc, Annual General Meeting, Apr 15, 2026. Price Target Changed • Nov 20
Price target increased by 7.0% to US$25.33 Up from US$23.67, the current price target is an average from 2 analysts. New target price is 11% above last closing price of US$22.88. Stock is down 3.9% over the past year. The company is forecast to post earnings per share of US$2.88 for next year compared to US$6.54 last year. Declared Dividend • Nov 09
Third quarter dividend of US$0.62 announced Shareholders will receive a dividend of US$0.62. Ex-date: 20th November 2025 Payment date: 3rd December 2025 Dividend yield will be 8.9%, which is higher than the industry average of 4.5%. 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 06
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 US are expected to grow by 3.2%. 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 7% per year, which means it has not declined as severely as earnings. Price Target Changed • Oct 02
Price target increased by 8.3% to US$25.27 Up from US$23.33, the current price target is an average from 2 analysts. New target price is 19% above last closing price of US$21.30. Stock is down 36% over the past year. The company is forecast to post earnings per share of US$3.07 for next year compared to US$6.54 last year. Declared Dividend • Aug 17
Second quarter dividend of US$0.40 announced Shareholders will receive a dividend of US$0.40. Ex-date: 22nd August 2025 Payment date: 3rd September 2025 Dividend yield will be 13%, which is higher than the industry average of 4.5%. Sustainability & Growth Dividend is not covered by earnings (149% earnings payout ratio) nor is it 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. The company's earnings per share (EPS) would need to grow by 66% to bring the payout ratio under control. However, EPS is expected to decline by 38% over the next year, which means the dividend may need to be reduced to reach a sustainable payout ratio. Reported Earnings • Aug 15
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 US are expected to grow by 3.9%. 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 2% per year, which means it is significantly lagging earnings. Tillkännagivande • 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. Declared Dividend • May 11
Dividend of US$0.40 announced Shareholders will receive a dividend of US$0.40. Ex-date: 22nd May 2025 Payment date: 4th June 2025 Dividend yield will be 24%, which is higher than the industry average of 4.5%. Sustainability & Growth Dividend is not covered by earnings (105% earnings payout ratio) nor is it covered by cash flows (141% 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 16% to bring the payout ratio under control. However, EPS is expected to decline by 50% over the next year, which means the dividend may need to be reduced to reach a sustainable payout ratio. 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 expected to decline by 27% p.a. on average during the next 2 years, while revenues in the Oil and Gas industry in the US are expected to grow by 3.7%. 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 11% per year, which means it is significantly lagging earnings growth. Recent Insider Transactions • Apr 04
Non-Executive Independent Director recently sold US$45k worth of stock On the 1st of April, Annette Beate Wacknitz Justad sold around 3k shares on-market at roughly US$16.51 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 US$8.8m more than they bought in the last 12 months. Upcoming Dividend • Mar 13
Upcoming dividend of US$0.60 per share Eligible shareholders must have bought the stock before 20 March 2025. Payment date: 02 April 2025. Payout ratio is on the higher end at 78%, and the cash payout ratio is above 100%. Trailing yield: 28%. Within top quartile of American dividend payers (4.7%). Higher than average of industry peers (4.0%). 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 decline by 28% p.a. on average during the next 2 years, while revenues in the Oil and Gas industry in the US are expected to grow by 4.1%. 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 34% per year, which means it is significantly lagging earnings growth. Declared Dividend • Nov 10
Third quarter dividend of US$1.20 announced Shareholders will receive a dividend of US$1.20. Ex-date: 21st November 2024 Payment date: 4th December 2024 Dividend yield will be 24%, which is higher than the industry average of 4.5%. 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 decline by 18% p.a. on average during the next 3 years, while revenues in the Oil and Gas industry in the US are expected to grow by 3.0%. Tillkännagivande • Nov 08
TORM plc, Annual General Meeting, Apr 16, 2025 TORM plc, Annual General Meeting, Apr 16, 2025. Price Target Changed • Oct 29
Price target decreased by 13% to US$40.00 Down from US$46.00, the current price target is an average from 3 analysts. New target price is 52% above last closing price of US$26.30. Stock is down 13% over the past year. The company is forecast to post earnings per share of US$7.84 for next year compared to US$7.75 last year. Recent Insider Transactions • Oct 09
CEO & Executive Director recently sold US$8.6m worth of stock On the 4th of October, Jacob Meldgaard sold around 261k shares on-market at roughly US$32.82 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 US$24m. 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 expected to decline by 19% p.a. on average during the next 3 years, while revenues in the Oil and Gas industry in the US are expected to grow by 1.8%. Tillkännagivande • 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 22% 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 10
First quarter dividend increased to US$1.50 Dividend of US$1.50 is 2.7% higher than last year. Ex-date: 21st May 2024 Payment date: 4th June 2024 Dividend yield will be 16%, which is higher than the industry average of 4.5%. 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 09
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 expected to decline by 19% p.a. on average during the next 3 years, while revenues in the Oil and Gas industry in the US are expected to grow by 2.1%. 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 58% per year, which means it is significantly lagging earnings growth. Tillkännagivande • 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 American dividend payers (4.7%). Higher than average of industry peers (3.8%). Tillkännagivande • 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 08
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 decline by 21% p.a. on average during the next 3 years, while revenues in the Oil and Gas industry in the US are expected to grow by 1.8%. 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 54% per year, which means it is significantly lagging earnings growth. Tillkännagivande • 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. Price Target Changed • Jan 24
Price target increased by 7.7% to US$42.00 Up from US$39.00, the current price target is an average from 3 analysts. New target price is 17% above last closing price of US$35.97. Stock is up 50% over the past year. The company is forecast to post earnings per share of US$7.44 for next year compared to US$6.92 last year. Tillkännagivande • 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 18
CEO & Executive Director recently sold US$31m worth of stock On the 14th of November, Jacob Meldgaard sold around 507k shares on-market at roughly US$60.54 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: 05 December 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 American dividend payers (5.2%). Higher than average of industry peers (4.6%). 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). Tillkännagivande • 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). Tillkännagivande • 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 forecast to decline by 15% p.a. on average during the next 3 years, while revenues in the Oil and Gas industry in the US are expected to remain flat. 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 63% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Nov 07
Now 21% undervalued Over the last 90 days, the stock is up 15%. The fair value is estimated to be US$38.19, 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. 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 2.3% decline forecast for the Oil and Gas industry in the US. 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 49% per year, which means it is significantly lagging earnings growth. Board Change • Jun 02
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 American dividend payers (5.2%). Higher than average of industry peers (4.9%).