TORM plc (NASDAQ: TRMD)

TORM plc is one of the world's largest carriers of refined oil products. The company transports clean petroleum products such as gasoline, jet fuel, kerosene, naphtha and gas oil and occasionally handles dirty petroleum products like fuel oil. It operates across the MR LR1 and LR2 vessel classes of the product tanker market. TORM plc manages a fleet of 93 owned or chartered in vessels and provides commercial, administrative and technical management for its ships. The company handles commercial management for all vessels and technical management for its owned vessels except three that are overseen by an unaffiliated third party. It also conducts vessel sale and purchase activities internally using relationships with shipbrokers, shipyards, financial institutions, and other shipowners.

The company generates revenue primarily by charging customers for the transportation of refined oil products and occasionally crude oil through its tanker segment. Additionally the marine engineering segment earns income by developing and producing advanced green marine equipment and providing installation services. Revenue is derived from voyage charters, spot market activities, and from the sale of marine engineering solutions to shipowners and operators.

The company operates through the following segments: Tanker and Marine Engineering.

• Tanker: This segment comprises TORM’s LR1, LR2 and MR vessels which are operated as a combined internal pool employed principally in the spot market to meet customer needs for transportation of refined oil products.

• Marine Engineering: This segment develops and produces advanced green marine equipment and offers installation services to customers who obtain control of the equipment upon delivery and acceptance.

TORM plc holds a significant position in the product tanker industry as one of the world's largest carriers of refined oil products with an owned fleet representing approximately three percent of the global product tanker fleet in deadweight terms. The company competes with owners and operators of MR, LR1 and LR2 vessels in a fragmented market where major oil companies, state owned enterprises, and independent operators vie for charters. Its competitive advantages include an integrated in house operating and management platform that handles commercial and technical functions for the fleet and a direct involvement in vessel acquisition and sale activities through strong relationships with shipbrokers, shipyards, and financial institutions.

The company serves a diverse customer base that includes major oil companies, state owned oil companies, and international trading houses in the tanker segment while the marine engineering segment supplies equipment and services to shipowners and operators seeking green solutions. In 2025 the twenty largest customers accounted for approximately 71% of total revenue and no single customer in the tanker segment exceeded 10% of total revenue.