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Torm orders newbuild MR tanker trio at GSI

Written by Nick Blenkey
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APRIL 3, 2018 — Copenhagen headquartered tanker owner Torm has exercised options for the construction of three MR newbuildings at China’s Guangzhou Shipyard International (GSI) for a total commitment of $93 million and with expected deliveries in 2019 through first quarter of 2020.

In connection with the acquisition, Torm says it has secured commitment for attractive vessel financing of up to $63 million from KfW and ABN AMRO respectively, which remains subject to loan documentation.

“We are pleased to expand the fleet with the addition of three MR newbuildings,” says Executive Director Jacob Meldgaard. “The vessels are attractively priced when comparing to the current market, and we believe that now is an attractive time to secure new fuel-efficient tonnage that is compliant with the ballast water convention and ready for the IMO 2020 sulfur requirements.”

“The vessels are already fully funded by our $100 million equity raise in January 2018 and through loan commitments from KfW and ABN AMRO,” he added.

Since 2017, Torm has bought a total of nine MR vessels and two LR1 vessels for a total consideration of $352 million. The vessels are all fuel-efficient and high-specification product tankers that are compliant with the ballast water convention and ready for the IMO 2020 sulfur requirements.

As of today, Torm has CAPEX commitments of $335 million covering the remaining CAPEX on Torm’s two LR2 vessels with expected delivery in 2018, two LR1 vessels and seven MR vessels with expected delivery in 2019 and first quarter of 2020. Torm’s undrawn credit facilities and cash today amount to approx. $526 million.

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