Torm connects four

And the losing streak will stretch on for a fifth year in 2013, the shipowner warns.

Bank-controlled Torm saw its red ink run to $581m in 2012, the heaviest of its annual reversals extending back to 2009.

In a joint address to shareholders CEO Jacob Meldgaard and chairman Flemming Ipsen say the result is clearly unsatisfactory.

The reversal in 2012 means Torm has clocked up a collective loss of $1.18bn since it posted a $361m profit in 2008.

While the headline figure makes unpleasant reading, its pre-tax loss of $579m came in exactly as the company guided in a profit warning a couple of weeks ago.

Torm notes the restructuring drew a loss of $145m largely linked to the reworking of charter contracts.

Further hits came from the sale of vessels and the cost of a $200m capital increase.

Stripping out restructuring charges, the adverse tanker and dry markets still led to the owner clocking up a $253m operating loss.

Ipsen said: “2012 proved challenging for shipping in general and in particular Torm faced uncertainty for a prolonged period.

“On a positive note, Torm succeeded in achieving a financial restructuring, which brings stability to the Company for the coming period.

“The Board of Directors is confident that Torm together with its most important stakeholders will re-establish the foundation for a stronger company going forward.”

Torm says it expects its pre-tax loss to be trimmed to between $100m and $150m in 2013.

Andy Pierce

13 March 2013, 09:02 GMT