TORM: Positive Market Conditions Coupled With Solid Financials Bring Profit

Summary

• TORM, a leading global owner and operator of tankers, experienced its highest-ever yearly earnings in 2022 with a net profit of $365 million, primarily due to increased freight rates amid geopolitical events like the Russian invasion of Ukraine.
• The company's financial strength is evident in its capital structure, with debt levels well below equity levels and a net debt of $669.2 million, significantly lower than the previous year's figure of over $1 billion.
• Despite the volatile nature of the product tanker market, TORM's strong balance sheet and predicted continued strength in the market due to high demand for refined products and the EU ban on Russian oil products make it a good investment, with a buy rating.

SHansche

Introduction

TORM plc (NASDAQ:TRMD) is a leading global owner and operator of tankers that specialize in transporting refined oil products. The company has set an ambitious target to reduce its carbon intensity by 40% by 2025. Geopolitical events in 2022, such as

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.