TORM reported the strongest quarterly financial results in its history during the second quarter of 2026 as disruptions surrounding the Strait of Hormuz drove product-tanker freight rates to exceptional levels.
Quarterly net profit surged to a record $338 million from $59 million a year earlier, representing an increase of approximately 473%.
Time charter equivalent earnings increased to $512 million from $208 million, while EBITDA jumped to $416 million from $127 million.
Fleetwide TCE rates averaged $59,301 per day, more than double the $26,672 generated in the prior-year quarter.
LR2 vessels generated $66,993 per day, LR1 vessels earned $57,550 and MR vessels earned $57,040.
Return on invested capital surged to 44.2% from 10%, while basic EPS increased to $3.31 from $0.60.
TORM attributed the extraordinary market conditions to conflict involving the U.S., Israel and Iran and the disruption of traffic through the Strait of Hormuz.
Reduced Middle Eastern oil exports shifted trade flows toward replacement barrels from the U.S., lengthening voyages and creating inefficiencies that supported freight rates.
The company said conditions remained characterized by a “no war, no peace” environment as transit restrictions continued fluctuating.
TORM is returning much of the windfall to shareholders.
The board approved a $2.40-per-share quarterly dividend, corresponding to approximately $246 million in total distributions and representing 73% of quarterly net profit.
Management also raised full-year guidance substantially.
TCE earnings are now expected at $1.4 billion to $1.6 billion, compared with previous guidance of $1.15 billion to $1.45 billion.
Full-year EBITDA is now projected at $1 billion to $1.2 billion, up from the previous $800 million to $1.1 billion range.
KEY QUOTE:
“We delivered the strongest quarterly results in TORM’s history, turning exceptional market conditions into tangible value for our shareholders.”
Jacob Meldgaard, CEO of TORM
