Torm Buys Four MR Resales from Guangzhou Shipyard

Danish shipping company TORM has entered into an agreement to purchase four fuel-efficient MR resale vessels from Guangzhou Shipyard International (GSI) with expected delivery in 2019.

The deal includes the option to purchase up to four additional MRs with expected delivery in late 2019. The company already has 20 GSI vessels in the current fleet, including four LR2 vessels under construction.

The vessels will be delivered according to TORM’s specifications in order to optimize trading, the company informed.

“I am pleased that TORM’s long-term relationship with Guangzhou Shipyard International has enabled us to purchase four MR resale vessels at very favorable prices,” Jacob Meldgaard, Executive Director, said.

“Given the market outlook, we see this as an attractive way to grow and renew our fleet at a cyclical good point in time.”

TORM has received firm commitment from Danish Ship Finance to finance the vessels with 65% of the purchase price. The tranche will run for seven years from the time of delivery, and the main terms of the agreement are in line with the company’s existing loan agreements.

With this agreement, TORM has as of today CAPEX commitments of USD 247 million covering the remaining CAPEX on TORM’s four LR2 vessels with expected delivery in 2017 and 2018 and the four new MR vessels. With the new financing from Danish Ship Finance, TORM’s undrawn credit facilities and cash today amount to approx. USD 468 million.