TORM announces a new distribution policy for a better alignment between cash generation and distributions to shareholders

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Today, the board of directors of TORM S.A. (“TORM”) has decided to adjust TORM Distribution policy to ensure a more direct link between cash generation and distribution to shareholders.

Go forward, TORM intends to distribute on a quarterly basis excess cash above a cash threshold set at the balance sheet date. For each quarter, the liquidity threshold will be determined as the product of the liquidity needs per vessel and the number of vessels owned and leased in TORM fleet on the day of the balance sheet.

Excess liquidity is determined as TORM readily available cash minus cash threshold. Readily available liquidity is defined as i) TORM cash balance on the last day of the quarter preceding the relevant distribution date, excluding restricted cash, plus (ii) undrawn amounts on TORM working capital facilities, less (iii) proceeds from the sale of vessels, or additional proceeds from vessel refinancing, or securities offerings in the last 12 months intended for share buybacks, prepayment of debts , ship acquisitions or general corporate purposes.

The cash requirement per vessel is set at:

  • $1.5 million for June 30, 2022
  • $1.8 million for September 30, 2022 From

No dividend will be paid as part of the 2022 first quarter report.

TORM The distribution policy will be reviewed periodically and the actual distribution for each quarter will be at board of directors discretion.

In addition to or instead of dividends, TORM will also consider share buybacks. Currently, TORM has the authorization to acquire A shares equivalent to a maximum total of 9% of TORM shares the capital.

Contact

Jacob Meldgardexecutive director, tel. : +45 3917 9200

Kim Ballfinancial director, tel. : +45 3917 9200

Andreas Abildgaard-HeinInvestor Relations, tel. : +45 3917 9339

On TORM

TORM is one of the world’s leading carriers of refined petroleum products. TORM operates a fleet of approximately 80 modern vessels with a strong commitment to safety, environmental responsibility and customer service. TORM was founded in 1889 and operates worldwide. TORM shares are listed on the Nasdaq in Copenhagen and on the Nasdaq in New York (symbol: TRMD A and TRMD, ISIN code: GB00BZ3CNK81). For more information, visit www.torm.com.

Safe Harbor Statement About the Future

This announcement may contain forward-looking statements, including “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. Words such as “will”, “aim”, “expect”, “anticipate “, “intends”, “plans”, “believes”, “estimates”, “plans”, “plans”, “may”, “should”, or the negative form of these terms and other similar expressions of future performance or results, and negatives thereof, are intended to identify such forward-looking statements. These forward-looking statements are based on current expectations and assumptions regarding expected developments and other factors affecting the Company. These are not historical facts, nor guarantees of future performance.

When the Company expresses an expectation or belief regarding future events or results, such expectation or belief is expressed in good faith and considered to have a reasonable basis. However, because these forward-looking statements are not guarantees of future performance and involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed, projected or implied by these forward-looking statements. In light of these risks and uncertainties, undue reliance should not be placed on the forward-looking statements contained in this release, as they are statements about events that are not certain to occur as described or at all.

Except to the extent required by applicable law or regulation, the Company undertakes no obligation to publicly release revisions or updates to these forward-looking statements to reflect new information, future events or circumstances after the date of this publication or to reflect the occurrence of unforeseen events. events. please look TORM deposits with the US Securities and Exchange Commission for a fuller discussion of some of these risks and uncertainties. The information contained herein speaks only as of the date hereof, and the Company disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this communication.

https://news.cision.com/torm-plc/r/torm-announces-new-distribution-policy-for-stronger-alignment-between-cash-generation-and-shareholde,c3564252

https://mb.cision.com/Main/21247/3564252/1577586.pdf

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