TORM plc (NASDAQ: TRMD)

TORM plc, also known as TRMD, is a prominent player in the international shipping industry, with its main commercial and technical activities based in Hellerup, Denmark. The company is one of the world's leading carriers of refined oil products, transporting a wide range of petroleum products, including gasoline, jet fuel, kerosene, naphtha, and gas oil, as well as occasionally handling dirty petroleum products like fuel oil. TORM operates a fleet of owned and chartered-in product tankers, ranging from Medium Range (MR) to Long Range 2 (LR2) vessels, which it employs worldwide, primarily in the spot market.

TORM's primary business activities revolve around the transportation of refined oil products, with a significant portion of its revenue generated from the spot market. The company's strategy is to capitalize on potential increases in product tanker hire rates in the near term while also seeking to provide stable cash flows and high utilization rates through longer-term contracts. TORM has a significant presence in the product tanker market, with a fleet that is well-suited to meet the needs of its customers. The company actively manages its fleet to meet the needs of its customers in the spot market.

TORM generates revenue by charging companies operating in the oil industry, such as major oil companies, state-owned oil companies, and international trading houses, for the transportation of refined oil products. The company's largest customers in the product tanker segment are companies operating in the oil industry. TORM's core business segment is the product tanker segment, where it operates a fleet of owned and chartered-in product tankers, ranging from Medium Range (MR) to Long Range 2 (LR2) vessels.

TORM's competitive position in the product tanker market is strong, with a large and diverse fleet of vessels that are well-suited to meet the needs of its customers. The company's focus on expanding its fleet and improving its operational efficiency has positioned it for future growth and success. TORM's key competitors in the product tanker market include other major shipping companies, such as Frontline, DHT, and Nordic American Tankers.

In recent years, TORM has been focused on expanding its fleet and improving its operational efficiency. The company has taken delivery of several new vessels, including LR1 and LR2 tankers, and has also installed scrubbers on 67 of its vessels to reduce emissions. TORM has also entered into agreements to sell and lease back several of its vessels, which will provide the company with additional cash and reduce its debt.

TORM is subject to international conventions and treaties, national, state and local laws and regulations in force in the countries in which its vessels and other vessels it may acquire may operate or are registered, relating to safety and health and environmental protection, including the storage, handling, emission, transportation and discharge of hazardous and non-hazardous materials, and the remediation of contamination and liability for damage to natural resources. Compliance with these laws, regulations and other requirements entails significant expenses, including vessel modifications and implementation of certain operating procedures.

The International Maritime Organization (IMO) is a specialized agency of the United Nations responsible for setting global standards for the safety, security, and environmental performance of vessels engaged in international shipping. The IMO has adopted several international conventions that regulate the international shipping industry, including the International Convention on Civil Liability for Oil Pollution Damage, the International Convention on Civil Liability for Bunker Oil Pollution Damage, the International Convention for the Prevention of Pollution from Ships, and the International Convention on Load Lines.

TORM plc's operations are also subject to environmental standards and requirements under Chapter IX of the SOLAS Convention, or the International Safety Management Code for the Safe Operation of Ships and for Pollution Prevention (the “ISM Code”). The ISM Code requires the party with operational control of a vessel to develop an extensive safety management system that includes, among other things, the adoption of a safety and environmental protection policy setting forth instructions and procedures for operating its vessels safely and describing procedures for responding to emergencies.

In addition to IMO regulations, TORM is subject to several regulations under the United States Oil Pollution Act of 1990 and the Comprehensive Environmental Response, Compensation and Liability Act, which impose strict liability on vessel owners and operators for oil spills and other environmental damages. TORM is also subject to regulations under the Clean Air Act, the Clean Water Act, and the Vessel Incidental Discharge Act, which regulate emissions, discharges, and other environmental impacts of its vessels.