John Chappell's questions to Torm PLC (TRMD) leadership • Q2 2025
Question
John Chappell of Evercore ISI asked about the key drivers behind the remarkable stability in TCE rates over the last three quarters and whether this consistency restricts TORM's operational or strategic flexibility. He also inquired if the recent major refinancing would lead to a higher dividend payout ratio in the future.
Answer
CEO Jacob Milkgaard explained that the stable rate environment provides a solid foundation for potential upside from factors like increased OPEC production and stretched trade routes, and it does not restrict the company's agility. CFO Kim Balle confirmed that the new financing is expected to lower the cash flow breakeven in 2026, which should support a higher dividend payout ratio, suggesting a level around 75-80% would be reasonable.