Srude Morado's questions to Torm PLC (TRMD) leadership • Q2 2025
Question
Srude Morado of Clarksons Securities asked for clarification on whether the recent surge in CPP tonne-miles was driven more by trade volumes or sailing distances. He also inquired about the specific timeline for the positive market effects from upcoming refinery closures and questioned the potential threat of sanctioned Aframaxes re-entering the conventional market.
Answer
CEO Jacob Milkgaard confirmed the tonne-mile increase was a combination of both higher volumes and longer sailing distances, particularly as Middle East to Europe trade flows increased to replenish low inventories. He specified that European refinery closures are expected by the end of 2025, with U.S. West Coast closures following in mid-2026. He downplayed the threat from sanctioned vessels, arguing many would struggle to return to the mainstream fleet due to poor maintenance and commercial unacceptability.