TORM Adds Three MRs to Its Orderbook

Danish shipping company TORM has exercised options for the construction of three MR newbuildings at Guangzhou Shipyard International (GSI).

TORM will pay a total of USD 93 million for the vessel trio which is scheduled for delivery in 2019 through first quarter of 2020.

In connection with the acquisition, TORM has secured commitment for vessel financing of up to USD 63 million from KfW and ABN AMRO respectively, which remains subject to loan documentation.

“We are pleased to expand the fleet with the addition of three MR newbuildings. The vessels are attractively priced when comparing to the current market, and we believe that now is an attractive time to secure new fuel-efficient tonnage that is compliant with the ballast water convention and ready for the IMO 2020 sulfur requirements,” Jacob Meldgaard, Executive Director at TORM, commented.

“The vessels are already fully funded by our USD 100m equity raise in January 2018 and through loan commitments from KfW and ABN AMRO,” he added.

Since 2017, TORM has bought a total of nine MR vessels and two LR1 vessels for a total consideration of USD 352 million. The vessels are all fuel-efficient and high-specification product tankers that are compliant with the ballast water convention and ready for the IMO 2020 sulfur requirements, according to the company.

As of today, TORM has CAPEX commitments of USD 335 million covering the remaining CAPEX on TORM’s two LR2 vessels with expected delivery in 2018, two LR1 vessels and seven MR vessels with expected delivery in 2019 and first quarter of 2020.

Currently, TORM operates a fleet of around 80 tankers.