Maersk Product Tankers back to black

Danish tanker owner and operator Maersk Product Tankers returned to black having reported a profit of $91.4 million for 2019 as freight markets improved across all tanker segments.

The profit marks a significant recovery when compared to a loss of $35 million a year earlier.

The tanker shipping company reported an increase in revenue to $727.7 million, against $647 million a year earlier.

Continued growth in demand for oil, increased transportation in preparation for the 2020 sulphur cap and sanctions limiting the available supply of vessels were the primary drivers of the company’s financial recuperation.

CEO Christian M. Ingerslev said the company’s solid strategic performance was also spurred by fleet performance optimization and emission reduction through digitalization as well as cutting of vessel costs and profit secured from vessel sales.

The company claims it has cut its CO2 fleet emissions by 5.4 percentage points, bringing the total reduction to 25.4% (2008-2019), through commercial and technical improvements. It wants to reduce CO2 emissions by 30% towards the end of 2021 and 45% by 2030 when compared to a 2008 baseline.

”We are on a positive trajectory for 2020 and our priorities are clear. We are cementing our financial position, continuing to deliver our strategy, and pushing the industry to greater sustainability, digitisation and profitability in our strategic partnership with Maersk Tankers,”  Ingerslev added.

During 2019, Maersk Product Tankers sold 12 ships and entered into sale and leaseback agreements for four MR vessels.

The company took delivery of four MR newbuildings and confirmed an order of the last four of 10 LR2 newbuildings, increasing outstanding capital commitments to $421.2 million ($384.4 million).

Commenting on the outlook for 2020, the tanker owner and operator said that the situation is uncertain amid restrictions on global transport and decline in demand for oil resulting from the coronavirus pandemic.

Maersk Product Tankers, owned by A.P. Møller Holding A/S and Mitsui & Co., owns 84 vessels, which carry refined oil products worldwide.