Danish TORM to expand its fleet

Danish shipping company TORM has reached an agreement to acquire four modern MR vessels “at an attractive price point”.

The quartet, built in 2011 by Korean yard Hyundai Mipo, would be purchased for a total consideration of USD 83 million with expected delivery between August and December 2019.

“Looking into an improving demand-supply situation for the transportation of clean petroleum products, we believe that the timing for a fleet expansion with modern vessels is appropriate and underlines the flexibility provided by our strong capital structure,” Jacob Meldgaard, Executive Director, said.

TORM has agreed a conditional term sheet of USD 66 million with an international financial institution on financing of the four MR vessels.

As of today, TORM has CAPEX commitments of around USD 346 million covering the remaining CAPEX on the company’s two LR1 newbuildings with expected delivery in 2019, six MR newbuildings with expected delivery in 2019 and the first quarter of 2020, the four 2011-built second-hand MR vessels and scrubber installations on newbuildings and retrofit vessels.

The company’s current undrawn credit facilities and cash amount to USD 407 million.

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