TORM cancels one MR newbuilding

TORM A/S 

22.11.2011 09:41

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TORM has entered into an agreement to cancel one MR product tanker newbuilding, 
 which was scheduled for delivery in March 2013. The parties have agreed not to 
 disclose the terms.   'TORM has cancelled an MR newbuilding as part of the     
 Company's overall plan to preserve cash and delever the balance sheet. With    
 this agreement TORM has remaining instalments on the newbuilding program of USD
 126 million,' says Chief Financial Officer Roland M. Andersen.                 
The effects of the transaction will be recognized in the financial statements in
 the fourth quarter of 2011 and lead to a P&L loss of approx. USD 13 million. It
 does not have any short-term cash impact. As a consequence, TORM revises its   
 forecast for the full year of 2011 from an expected loss before tax of USD     
 175-195 million to an expected loss before tax of approx. USD 190-210 million. 
Following the cancellation, TORM has three product tankers and two dry bulk     
 vessels on order and an owned fleet consisting of 65.5 product tankers and two 
 dry bulk vessels.                                                              
                                                                                





Contact TORM A/S                                              Tuborg Havnevej 18
Jacob Meldgaard, CEO, tel.: +45 3917 9200                     DK-2900 Hellerup, 
Roland M. Andersen, CFO, tel.: +45 3917 9200                   Denmark          
C. Søgaard-Christensen, IR, tel.: +45 3076 1288               Tel.: +45 3917    
                                                               9200 / Fax: +45  
                                                               3917 9393        
                                                              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 165 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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