Danish shipping company TORM saw its earnings drop in the first quarter of the year, driven by weak freight rates.
TORM delivered a revenue of USD 163.1 million in the first quarter ended March 31, 2018, compared to a revenue of USD 172.8 million reported in the same period in 2017.
The company’s profit for the period decreased to USD 1.1 million from USD 4.8 million seen a year earlier. TCE rates were at USD 14,225 per day, down from USD 15,264 per day in the first quarter of 2017.
TORM said that in the first quarter of 2018, product tanker freight rates stayed relatively flat at levels slightly below the levels seen in the second half of 2017.
“We remained profitable in the first quarter of 2018 despite a muted freight rate environment, as the One TORM platform continues to deliver strong commercial results,” Jacob Meldgaard, Executive Director, said.
Following the end of the first quarter, TORM exercised options for the construction of three high specification MR newbuildings for a total commitment of USD 93 million and with expected delivery in 2019 through the first quarter of 2020 and secured commitment for attractive vessel financing of up to USD 63 million, subject to loan documentation.
During the quarter, the company took delivery of two LR2 newbuildings, while a third LR2 newbuilding was delivered in April 2018.