"I am encouraged that TORM remained profitable in a challenging first quarter of 2017 and delivered a very competitive performance. The results are attributable both to our strong commercial performance and an attractive cost structure. So far, TORM has remained profitable in the second quarter, where the product tanker market continues to be volatile," says Executive Director Jacob Meldgaard.

In the first quarter of 2017, TORM realized a positive EBITDA of USD 44m and a profit before tax of USD 5m.

• EBITDA for the first quarter of 2017 was USD 44m (2016, same period: USD 70m). Profit before tax for the first quarter of 2017 was USD 5m (2016, same period: USD 31m). Cash flow from operating activities was positive with USD 27m in the first quarter of 2017 and earnings per share (EPS) was USD 0.1.
   
• During the first quarter of 2017, product tanker freight rates started out at weak levels similar to the fourth quarter of 2016 but strengthened towards the end of the first quarter. The freight rate improvement was primarily driven by increased demand for clean petroleum products in the western markets, which resulted in stronger TCE earnings for the first quarter of 2017 compared to the preceding quarter. In the first quarter of 2017, TORM's product tanker fleet realized average TCE earnings of USD/day 15,264 for 7,004 earning days (2016, same period: USD/day 19,845 for 6,973 earning days) and realized a gross profit of USD 55m (2016, same period: USD 80m).
   
• During the first quarter of 2017, TORM sold one vessel, TORM Anne (1999-built MR vessel), and completed sale and leaseback transactions for two vessels, TORM Helene and TORM Mary. Following the balance sheet date, TORM has sold two vessels, TORM Madison and TORM Trinity (both 2000-built Handy vessels), and completed a sale and leaseback transaction for one vessel, TORM Vita. The three sale and leaseback transactions are treated as financial leases but have no purchase obligation attached.
   
• The carrying value of the fleet including prepayments was USD 1,363m as of 31 March 2017 excluding outstanding installments on the LR2 newbuildings of USD 139m. Based on broker valuations, TORM's fleet including newbuildings had a market value of USD 1,345m as of 31 March 2017. Compared to the broker valuations as of 31 December 2016, the fleet value has decreased by USD 93m (~6.5%).
   
• Net interest-bearing debt amounted to USD 596m as of 31 March 2017. As previously announced, TORM finalized a new term facility of up to USD 130m in January 2017. As of 31 March 2017, the new term facility is fully drawn. 

• TORM had undrawn credit facilities and cash of approx. USD 405m at the end of the first quarter of 2017. TORM's order book stands at four LR2 newbuildings with expected delivery in 2017 and 2018. Outstanding CAPEX relating to the order book amounted to USD 139m and is fully financed.
   
• Based on broker valuations as of 31 March 2017, TORM's net asset value (NAV), excluding charter commitments, is estimated at USD 663m, equivalent to a NAV/share of USD 10.7 or DKK 74.5.
   
• Equity amounted to USD 786m as of 31 March 2017, equivalent to a book equity/share of USD 12.7 or DKK 88.4 excluding treasury shares and outstanding warrants, giving TORM an equity ratio of 46%.
   
• As of 31 March 2017, 14% of the remaining earning days in 2017 were covered at USD/day 19,873.
   
• As of 5 May 2017, TORM had covered 56% of the earning days in the second quarter of 2017 at an average TCE of USD/day 15,628.
   
• TORM has changed its home state for the EU Transparency Directive from Denmark to the United Kingdom (TORM's country of incorporation). The change implies that the threshold related to major shareholder disclosure will be 3% as per standard UK practice, as opposed to the Danish standard threshold of 5%.

ABOUT TORM
TORM is one of the world's leading carriers of refined oil products. The Company operates a fleet of approximately 80 modern vessels with a strong commitment to safety, environmental responsibility and customer service. TORM was founded in 1889. The Company conducts business worldwide. TORM's shares are listed on Nasdaq Copenhagen (ticker: TRMD A). For further information, please visit www.torm.com.

SAFE HARBOR STATEMENTS AS TO THE FUTURE
Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and statements other than statements of historical facts. The words "believe," "anticipate," "intend," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions generally identify forward-looking statements.

The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies that are difficult or impossible to predict and are beyond our control, the Company cannot guarantee that it will achieve or accomplish these expectations, beliefs or projections.

Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of the world economy and currencies, changes in charter hire rates and vessel values, changes in demand for "ton miles" of oil carried by oil tankers, the effect of changes in OPEC's petroleum production levels and worldwide oil consumption and storage, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled dry-docking, changes in TORM's operating expenses, including bunker prices, dry-docking and insurance costs, changes in the regulation of shipping operations, including requirements for double hull tankers or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents, political events or acts by terrorists.

In light of these risks and uncertainties, you should not place undue reliance on forward-looking statements contained in this release because they are statements about events that are not certain to occur as described or at all. These forward-looking statements are not guarantees of our future performance, and actual results and future developments may vary materially from those projected in the forward-looking statements.

Except to the extent required by applicable law or regulation, the Company undertakes no obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.