TORM Sells Two Bulk Newbuilding Contracts
Monday, December 26, 2011
TORM has entered into an agreement to sell two Kamsarmax bulk newbuilding contracts. The two vessels contracted in 2007 were scheduled for delivery in the fourth quarter of 2012 and the first quarter of 2013 respectively. The agreement has a positive cash impact of $21m in January 2012 and it will reduce the remaining CAPEX requirements by $42m. The transaction leads to a P&L loss of approximately $41m which will be recognized in the financial statements in the fourth
quarter of 2011. "The sale reflects our cautious view on the dry bulk market going forward, and it fits well into the Company's overall plan to preserve ash and reduce debt," says CFO Roland M. Andersen.
As a consequence, TORM revises its forecast for the full year 2011 from an expected loss before tax of $190-210 million to an expected loss before tax of approximately $230-250 million. Following the transaction, TORM has three product tankers remaining in the order book and installments related hereto of $83 million.