Overview

• Denmark-based product tanker operator's Q1 net profit nearly doubled yr/yr on record freight rates

• Company raised full-year 2026 earnings and EBITDA guidance on strong market conditions

Outlook

• Torm raises 2026 TCE earnings guidance to $1.15-1.45 bln from $850 mln-$1.25 bln

• Company expects 2026 EBITDA of $800 mln-$1.1 bln, up from prior $500 mln-$900 mln range

• Torm says 58% of 2026 earning days remain open, leaving results exposed to market rates

Result Drivers

• RECORD FREIGHT RATES - Co said rates rose to record levels in April, driven by market disruptions and increased demand for replacement barrels from the US

• GEOPOLITICAL TENSIONS - Co said escalating conflict in the Middle East and closure of the Strait of Hormuz materially altered market conditions, boosting freight rates

• FLEET RENEWAL - Co invested in fleet renewal, including six resale vessels, reflecting a long-term view of the market

Company press release: ID:nWkr1Mfm2C

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the oil & gas transportation services peer group is "buy"

• Wall Street's median 12-month price target for Torm PLC is DKK187.50, about 14.4% below its May 12 closing price of DKK219.00

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.