Danish shipping company Torm warned on Monday its loss for 2011 would exceed earlier guidance as rates in the product tanker market had been lower than expected in the second half of 2011, Reuters reports. Torm, which is a tanker and dry-bulk operator with a fleet of about 140 vessels, said it expected a loss before tax of $175 million to $195 million for the full year 2011, exceeding an earlier forecast loss range of $100 million to $175 million.
"Since the quarterly release in August 2011 the global economic uncertainty and pressure on freight rates have persisted," Torm A/S said in a statement.
Chief Executive Jacob Meldgaard said in the statement that especially freight rates for larger vessels had been below expectations in the second half of 2011.
"It has been a challenging market for a prolonged period, but Torm remains confident that in the longer term the product tanker segment will benefit from improved market fundamentals," Meldgaard said.
The warning came ahead of nine-month results due on Nov. 17.
Shares in Torm plunged 23 percent by 1244 GMT, returning to levels visited in mid-October.
"Since the quarterly release in August 2011 the global economic uncertainty and pressure on freight rates have persisted," Torm A/S said in a statement.
Chief Executive Jacob Meldgaard said in the statement that especially freight rates for larger vessels had been below expectations in the second half of 2011.
"It has been a challenging market for a prolonged period, but Torm remains confident that in the longer term the product tanker segment will benefit from improved market fundamentals," Meldgaard said.
The warning came ahead of nine-month results due on Nov. 17.
Shares in Torm plunged 23 percent by 1244 GMT, returning to levels visited in mid-October.