Demand for tankers to haul fuels including gasoline will benefit for several years as refinery expansions in India and the Persian Gulf drive up deliveries to developed economies, shipowner Torm A/S (TORM) said.
“We are optimistic on one particular development: the continued expansion of new capacity in the Middle East and India,” Chief Executive Officer Jacob Meldgaard said today by phone. “These refineries’ ability to produce products at a low unit cost over time mean products will be transported from these regions to consuming areas where refineries will be closing.”
The CEO spoke after Hellerup, Denmark-based Torm said its second-quarter net loss narrowed to $30.2 million from $132.1 million a year earlier on a 6.3 percent gain in sales to $289.4 million. Torm said it will earn $90 million to $110 million this year before interest, taxes, depreciation and amortization, against a prior estimate of $80 million to $110 million.
The Baltic Clean Tanker Index, a measure of the cost of carrying refined fuels, averaged 602 Worldscale points in the second quarter, little changed from last year, according to data from the Baltic Exchange in London.
Torm owned 65 product tankers and two dry-bulk vessels as of June 30, according to the second-quarter report.
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