Sale and leaseback agreement for one product tanker

TORM A/S 

01.06.2011 13:30

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TORM has entered into a sale and leaseback agreement for the product tanker TORM
 Margrethe. The vessel has been sold for a total consideration of USD 46        
 million. The transaction will be treated as a sale with an accounting profit of
 USD 8 million.                                                                 
The sale will be effected in the second quarter of 2011 where the effect of the 
 transaction will be recognised in the financial statements. At the same time,  
 the vessel will be leased back on a bareboat charter for 7 years.              
The transaction does not change the Company's forecast for 2011 of a loss before
 tax of USD 100-125 million.                                                    
Following the sale and leaseback agreement, TORM's own fleet consists of 70.5   
 product tankers and two dry bulk vessels. In addition, TORM has four product   
 tankers and two dry bulk vessels on order.                                     
                                                                                
                                                                                
Contact TORM A/S                                             Tuborg Havnevej 18 
Jacob Meldgaard, CEO, tel.: +45 39 17 92 00                  DK-2900 Hellerup,  
Roland M. Andersen, CFO, tel.: +45 39 17 92 00                Denmark           
                                                             Tel.: +45 39 17 92 
                                                              00 / Fax: +45 39  
                                                              17 93 93          
                                                             www.torm.com       
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About TORM                                                                      
TORM is one of the world's leading carriers of refined oil products as well as a
 significant player in the dry bulk market. The Company runs a fleet of         
 approximately 140 modern vessels in cooperation with other respected shipping  
 companies sharing TORM's commitment to safety, environmental responsibility and
 customer service.                                                              
TORM was founded in 1889. The Company conducts business worldwide and is        
 headquartered in Copenhagen, Denmark. TORM's shares are listed on NASDAQ OMX   
 Copenhagen (ticker: TORM) and on NASDAQ in New York (ticker: TRMD). For further
 information, please visit www.torm.com.                                        
                                                                                
Safe Harbor statements as to the future                                         
Matters discussed in this release may constitute forward-looking statements.    
 Forward-looking statements reflect our current views with respect to future    
 events and financial performance and may include statements concerning plans,  
 objectives, goals, strategies, future events or performance, and underlying    
 assumptions and statements other than statements of historical facts. The      
 forward-looking statements in this release are based upon various assumptions, 
 many of which are based, in turn, upon further assumptions, including without  
 limitation, management's examination of historical operating trends, data      
 contained in our records and other data available from third parties. Although 
 TORM believes that these assumptions were reasonable when made, because these  
 assumptions are inherently subject to significant uncertainties and            
 contingencies which are difficult or impossible to predict and are beyond our  
 control, TORM cannot guarantee that it will achieve or accomplish these        
 expectations, beliefs or projections.                                          
Important factors that, in our view, could cause actual results to differ       
 materially from those discussed in the forward- looking statements include the 
 strength of the world economy and currencies, changes in charter hire rates and
 vessel values, changes in demand for 'tonne miles' of oil carried by oil       
 tankers, the effect of changes in OPEC's petroleum production levels and       
 worldwide oil consumption and storage, changes in demand that may affect       
 attitudes of time charterers to scheduled and unscheduled dry-docking, changes 
 in TORM's operating expenses, including bunker prices, dry-docking and         
 insurance costs, changes in the regulation of shipping operations, including   
 requirements for double hull tankers or actions taken by regulatory            
 authorities, potential liability from pending or future litigation, domestic   
 and international political conditions, potential disruption of shipping routes
 due to accidents and political events or acts by terrorists.                   
Risks and uncertainties are further described in reports filed by TORM with the 
 US Securities and Exchange Commission, including the TORM Annual Report on Form
 20-F and its reports on Form 6-K.                                              
Forward-looking statements are based on management's current evaluation, and    
 TORM is only under an obligation to update and change the listed expectations  
 to the extent required by law.
News Source: NASDAQ OMX



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Language:     English
Company:      TORM A/S
              
               
              Denmark
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         DK0060082915
WKN:          
 
End of Announcement                             DGAP News-Service
 
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