TORM A/S reported record quarterly earnings for Q2 2026 on Wednesday, driven by geopolitical disruptions to global oil trade that pushed tanker rates to multi-year highs. The Danish product tanker operator posted a net profit of $338 million, more than five times the $59 million earned in the same period a year earlier, according to slides from its investor presentation.
Total cash earnings (TCE) surged to $512 million from $208 million in Q2 2025, while revenue reached $662.8 million, exceeding Wall Street expectations of $506.92 million. EBITDA rose 228% to $416 million, and basic earnings per share jumped to $3.31 from $0.60. The company declared a quarterly dividend of $2.40 per share, six times the $0.40 paid in Q2 2025, totaling roughly $246 million in distributions.
Geopolitical tensions in the Strait of Hormuz reduced crude oil flows through the strait by 11.3 million barrels per day and clean petroleum products by 2.1 million barrels per day, according to TORM’s presentation. Volumes rerouted around the Cape of Good Hope increased by 2.1 million barrels per day for crude and 0.3 million barrels per day for clean petroleum products. Global oil flows remained 10% below pre-conflict levels in July despite a temporary ceasefire, though rates peaked at over $120,000 per day for LR2 vessels in April and $70,000 per day for MR vessels in May.
TORM’s fleet expanded to 97 vessels from 78 in 2022, with the average TCE rate more than doubling to $59,301 per day. The company raised its full-year 2026 guidance, projecting TCE earnings of $1.4–1.6 billion and EBITDA of $1.0–1.2 billion, up from prior ranges of $1.15–1.45 billion and $800 million–$1.1 billion, respectively. Net asset value grew to $3.74 billion, while net debt declined to $715 million.
CEO Jacob Meldgaard characterized the market shift as a structural reset rather than a temporary disruption. The company’s share price traded at $30.67, down 2.56% on the day, but up nearly 69% year-to-date and 66% over the past 12 months.
