TORM Buys Two MR Tankers
Danish ship owner TORM said it has signed an agreement to purchase two 50,000 dwt medium range (MR) tankers currently under construction at the Korean shipyard Hyundai Mipo.
“TORM’s strong capital structure allows us to act when we see attractive opportunities to grow the fleet,” said TORM executive director, Jacob Meldgaard.
“With these two MR resales delivering in Q3 2017, we have acquired a total of six new high-quality product tankers over the last few weeks. We believe that asset prices are at a cyclical low and that our purchase prices are attractive. Therefore, the timing is right for growing and renewing our fleet.”
In addition to the six vessels purchased for a total consideration of $185 million during the third quarter of 2017. TORM has further newbuilding options for 10 product tankers.
As of today, TORM said it has CAPEX commitments of $312 million covering the remaining CAPEX on TORM’s four LR2 vessels with expected delivery in 2017 and 2018 and six MR vessels with expected delivery in 2017 and 2019. TORM’s undrawn credit facilities and cash today amount to approximately $467 million.
