Due to low time charter equivalent (TCE) rates, Monaco-based tanker shipping company Scorpio Tankers suffered a net loss of USD 11.5 million in the first quarter of 2017, against a net income of USD 28 million posted in the same period last year.
From January to March 2017, TCE revenue decreased to USD 120.3 million from USD 164.8 million seen in the same quarter a year earlier. As disclosed, this decrease was driven by a drop in overall TCE revenue per day to USD 14,408 in the fist quarter of 2017 from USD 20,203 during the three-month period of 2016.
“TCE revenue per day decreased across all of our operating segments as unfavorable market conditions that developed during the second half of 2016, driven by the delivery of newbuildings, high product inventories, low refining margins and a lack of arbitrage opportunities, persisted into the first quarter of 2017,” Scorpio Tankers said.
In April, Scorpio Tankers entered into agreements to sell and leaseback three MR product tankers, STI Beryl, STI Le Rocher and STI Larvotto, to an unaffiliated third party. Two of these sales were completed this month and the third is expected to close prior to May 1.
“Upon closing, all amounts outstanding under the company’s 2011 credit facility are expected to be fully repaid, and the company’s liquidity is expected to increase by an aggregate of approximately USD 30 million,” according to Scorpio Tankers.
In February and March, the tanker owner took delivery of STI Selatar and STI Rambla, two LR2 product tankers, from Sungdong Shipbuilding and Marine Engineering (SSME).
In addition, STI Galata and STI Bosphorus, two MR product tankers that were under construction at Hyundai Mipo Dockyard (HMD), were handed over to the company in March and April, respectively.
As of April, Scorpio Tankers’ owned fleet comprised 79 vessels with an aggregate tonnage of 5.17 million dwt. Additionally, the company had 21 ships in its time or bareboat chartered-in fleet, with a total tonnage of 1.02 million dwt.