In the first quarter of 2022, TORM achieved TCE rates of $16,743/day (2021, same period: $13,493/day) and EBITDA of $60.4 million (2021, same period: $18.9 million) . Profit before tax amounted to 10.7 million USD (2021, same period a loss of 21.1 million USD) and earnings per share (EPS) was 0.13 USD or 0.86 DKK (2021, same period loss per share: 0.29 USD or 1.80 DKK) . Cash flow from operating activities was positive at $17.9m in Q1 2022 (2021 same period: $9.8m) and return on invested capital (RoIC) was 4.4% ( 2021, same period: -2.7%).
At the beginning of the first quarter of 2022, the market for product tankers was negatively influenced by the decline in long-haul trade volumes, which caused LR rates to fall below MR rates. In late February 2022, Russia’s invasion of Ukraine led to a partial rerouting of trade flows to longer-distance trade, leading to freight rate hikes to levels last seen in spring 2020. Self-sanction by Western oil majors and shipowners led to weaker commodity flows, mostly diesel, from Russia to Europe, while high arbitrage spreads encouraged diesel flows from the Middle East and from the United States to Europe, increasing the demand for ton-miles for ships.
None of TORM’s ships have been in any of the critical areas since the Russian invasion of Ukraine and as a result we have been able to maintain operational security. In the first quarter of 2022, many countries lifted COVID-19 related restrictions despite a significant increase in the number of infections from time to time. Despite a few non-serious cases on our ships, TORM has been able to keep our shore employees and seafarers healthy through high vaccination rates. We expect restrictions around the world to be lifted further in the coming quarters.
During the first quarter of 2022, TORM entered into agreements to sell TORM Horizon (MR) and TORM Tevere (Handy) with delivery and expected delivery to new buyers during the second quarter of 2022. After the end of the first quarter of 2022, TORM has bought a used LR2 ship. The vessel will be financed through a sale-leaseback agreement with a Chinese leasing company. TORM expects to take delivery of the vessel during the third quarter of 2022. TORM has sold its oldest LR2 vessel, TORM Gudrun, which we expect to deliver to the new owner during the second quarter of 2022. Additionally, as part of the decision TORM strategic to phase out the handy class of vessels, TORM sold the last remaining Handysize vessel in April 2022. The vessel is expected to be delivered to the buyer during the third quarter of 2022. Since 2017, TORM has sold a total of 11 Handysize ships. The LR1 TORM Emilie vessel sold in the fourth quarter of 2021 was delivered to its new owner in early April 2022.
As of March 31, 2022, TORM’s available liquidity was $139.6 million, consisting of $94.6 million of cash and cash equivalents and an undrawn credit facility of $45.0 million. TORM repaid $45 million on the RCF facilities during the first quarter of 2022. Cash and cash equivalents include $19.7 million of restricted cash, primarily related to collateral on financial instruments. As of March 31, 2022, interest-bearing net debt was $999.8 million (2021: $743.4) and TORM’s loan-to-net-value (LTV) ratio was 51.5% (2021: 55, 5%).
Based on broker valuations, TORM’s fleet had a market value of $1,957.4 million including assets held for sale as of the end of March 2022. Compared to broker valuations as of December 31 2021, the fleet market value increased by $31.4 million. after adjusting for vessels acquired and sold in the first quarter of 2021. The carrying value of the TORM fleet was $1,973.4 million as of March 31, 2022. The fleet was not impaired as of March 31, 2022, as TORM has assessed that there was no indication of impairment and the book value corresponded to the market value.
As of March 31, 2022, TORM had installed 52 scrubbers out of a planned 60, including scrubbers installed on purchased second-hand vessels. The remaining scrubbers are expected to be installed before the end of the third quarter of 2023.
As of March 31, 2022, 16% of compensation days in 2022 were covered at an average rate of $19,694/day. As of May 08, 2022, coverage for Q2 2022 was 65% at 28,348 USD/day. For the different ship classes, the coverage was 65% at 32,123 USD/day for LR2, 58% at 29,915 USD/day for LR1, 66% at 27,424 USD/day for MR and 48% at 12,490 USD /day for Handysize. Recent trading has been done at significantly higher levels.