On November 4, TORM, a Danish owner of product tankers, released its “Financial Results for the Third Quarter and First Three Quarters of 2026.” The report showed that the company’s fleet renewal and expansion plans have made significant progress, coupled with strong financial performance.
Based on TORM’s latest quarterly financial report, the shipowner exercised options for two MR product tankers in the third quarter of 2026. The options that have now been exercised are for vessels included in the 6+2 MR product tanker construction contract previously announced by TORM. The first six vessels are expected to be delivered in 2029, while the two most recently confirmed vessels are scheduled for delivery in 2030.
Market sources indicate that, including orders already finalized, all eight MR product tankers are being built by by the Chinese shipbuilder Zhoushan Changhong International. Shipbrokers estimate the construction cost per vessel at approximately $46 million, bringing the total value of the eight newbuilds to about $368 million.
It is worth noting that these eight MR product tankers mark the first time since 2020 that TORM has directly ordered newbuilds. The shipowner’s last order was placed in early 2020, when it placed an additional order with Guangzhou Shipyard International for two LR2 product tankers. As far back as 2018, TORM had exercised options for three MR product tankers, which were also built by Guangzhou Shipyard International.
In addition to the option orders that have taken effect, TORM also confirmed in its quarterly earnings report that it has signed agreements for the construction of eight LR2 product tankers. These agreements were signed after September 30. TORM has not yet disclosed the specific signing dates or the shipbuilders involved in this order, stating only that the orders are held through a 50/50 joint venture and are expected to be delivered between 2029 and 2030.
Besides, TORM has secured options for two MR product tankers to be delivered after September 30; these options have not yet taken effect.
Along with the six MR product tankers acquired in the second quarter of 2026 for resale (to be delivered from the first quarter of 2027 through 2028), TORM noted that this investment in a new fleet of vessels will not only help advance its strategy of building a modern, efficient fleet but will also support future profit growth and create long-term shareholder value.
In addition to expanding and modernizing its fleet, TORM simultaneously moved forward with phasing out aging vessels in the third quarter of 2026. TORM has sold the LR1 product tanker “TORM Venture,” built in 2007, and the MR product tanker “TORM Laura,” built in 2008. Following the disposal of these two vessels, TORM’s fleet consists of 95 vessels (excluding those under construction), including 22 LR2 product tankers, 9 LR1 product tankers, and 64 MR product tankers.
According to financial report data, in the third quarter of 2026, TORM reported operating revenue of $499 million, a year-over-year increase of 45.8%; earnings before interest, taxes, depreciation, and amortization (EBITDA) of $274 million; and net income of $199 million, a 156.6% increase from $78 million in the same period last year. In the first three quarters of 2026, TORM reported net income of $660 million, a 231% increase year-over-year.