TORM Updates Fleet Status
Denmark-based shipping company TORM sold three vessels: TORM Anne (1999-built MR vessel), TORM Madison and TORM Trinity (both 2000-built Handysize vessels) during the first six months of 2017.
Furthermore, TORM completed sale and leaseback transactions for three vessels: TORM Helene, TORM Mary and TORM Vita. The three sale and leaseback transactions are treated as financial leases but have no purchase obligation attached.
Following the balance sheet date, TORM has completed two transactions to purchase a total of six MR resale vessels for a total consideration of USD 185m.
The first transaction includes four MR resale vessels with expected delivery in 2019. TORM has received firm commitment from Danish Ship Finance to finance the four vessels with 65% of the purchase price.
The transaction includes an option to purchase up to four additional MR vessels with expected delivery in late 2019. The second transaction includes two MR resale vessels for delivery in the third quarter of 2017. In addition to the six vessels purchased, TORM has sold one vessel, TORM Fox, a 2005-built Handysize vessel.
The carrying value of the fleet including prepayments was USD 1,342m as of 30 June 2017 excluding outstanding installments on the LR2 newbuildings of USD 134m. Based on broker valuations, TORM's fleet including newbuildings had a market value of USD 1,354m as of 30 June 2017.
The Company operates a fleet of approximately 80 modern vessels.
