Torm only expects to breakeven in 2009
As a result of lower-than-expected freight rates for product tankers for the remainder of 2009, Torm revises its forecast for profit before tax from USD 100 -140 million to around breakeven.
The forecast includes expected negative mark-to-market non-cash adjustments of approximately USD 20 million and no further sales of vessels.
The lower freight rates for product tankers are primarily due to lower demand for transport of oil products as global consumption of oil was lower than expected.
"We are experiencing historically low freight rates for product tankers at the moment. Our general strategic view of the product tanker market going forward is unaffected by this fall in rates, and we remain positive on the future prospects of the segment. We are also pleased to note that our efficiency improvement programme is almost fully implemented and that the planned cost savings of USD 40-60 million per year will be achieved from 2010 and onwards," says Mikael Skov, CEO of TORM.
As planned, TORM will release its interim financial statements for the first six months of 2009 on 20 August 2009.
Source: Torm
