The tanker operator’s stock has increased by 327 percent in 2022 which is way above all other companies on the Danish stock market.
Photo: Carsten Lundager / Torm
Tanker carrier Torm has blown by most on the Danish stock market in 2022, where the Ukraine war and subsequent sanctions against Russia have turned the market for oil transportation upside down.
As a result, Torm has set the course for a record profit, reflected in the share price as well, which has increased by no less than 327 percent since the turn of the year.
No other company on the Danish stock market even comes close to that, with another shipping company, Norden, coming in second with a 151-percent increase during 2022.
Both companies earn their living by carrying refined oil products at sea, while Norden also transports dry cargo such as grain and soybeans.
The oil freight market has been further strengthened by increasing demand and refineries shutting down across the world, resulting in longer voyages.
New reality after Ukraine war
Torm is currently heading for its best income year to date, meaning 2022 will most likely exceed 2020, which is considered a historically strong year for tanker operators.
CEO Jacob Meldgaard confirmed the record course in relation to the company’s Q3 result.
”I am confident that we’ll manage to do so [exceed the 2020 result, -ed.],” said Meldgaard to MarketWire in November even though Torm provides no specific financial expectations.
Freight rates truly began their upward trajectory following the Russian invasion of Ukraine which prompted several countries to halt oil imports from Russia, entailing longer sailing distances for oil carriers.
This keeps vessels at work for an extended period of time, reducing supply and elevating prices – with share prices following suit.
