Torm Orders Eight LR2 Tankers Through New Joint Venture

Danish shipping company Torm announced a new order for eight LR2 product tankers through a 50:50 joint venture, a deal signed after the close of the third quarter. In parallel, the company exercised options for two additional MR vessels at a Chinese shipyard, bringing its existing newbuilding programme in that segment to eight firm units.

Torm did not disclose the identity of its joint venture partner or the shipyard where the LR2s will be built, nor did it provide prices or delivery dates for these eight vessels. For the MR vessels ordered in China, the original six units of 50,000 dwt are scheduled for delivery in 2029, and the two additional ones in 2030; market sources cited by media outlets estimated a price of about $46 million per vessel, which would bring the full eight-MR programme to approximately $368 million.

The new order adds to a renewal strategy that includes six resale MR vessels set to join the fleet between 2027 and 2028. During the third quarter, Torm also sold older tonnage, the LR1 Torm Venture (2007) and the MR Torm Laura (2008), leaving its operating fleet at 95 product tankers at the end of September, excluding vessels on order. With these latest moves, the company's total committed newbuilding programme rises to 22 vessels, plus open options for two additional MR units.

The order came amid a strong improvement in results: Torm reported a net profit of $659.8 million in the first nine months of 2026, up 231.2% year-on-year. In the third quarter, revenue rose 45.8% to $499.4 million, net profit increased 156.6% to $199.1 million, and EBITDA reached $274.1 million, while the fleet's average time charter equivalent (TCE) earnings rose to $40,102 per day from $31,012 a year earlier.

CEO Jacob Meldgaard stated that the company remains confident in the long-term outlook for the product tanker market and is investing selectively to renew and grow its fleet. Torm also raised its full-year EBITDA guidance to a range of between $1.35 billion and $1.5 billion, following successive upward revisions during 2026.