Navig8 Chemical Ends Quarter in Loss
Although the chemical tanker market started sailing towards recovery, the chemical shipping company Navig8 Chemical Tankers ended the first quarter of 2017 with a net loss of USD 1.2 million, against a net income of USD 10.3 million seen in the same period a year earlier.
Navig8 Chemical said that the decrease is mainly attributable to lower gross average daily time charter equivalent (TCE) rates achieved in the period, partially offset by an increase in total operating days compared to the same period in the prior year, and increases in vessel operating expenses, depreciation and interest income related to the expansion of the company’s operating fleet.
“The chemical tanker market began to show signs of improvement in the first quarter, although rates remain under pressure primarily due to global fleet growth that has outpaced demand,” Nicolas Busch, Chief Executive Officer of Navig8 Chemical Tankers, said.
Revenues for the period experienced a slight increase ending the quarter at USD 37.9 million, compared to USD 36.5 million reported in the first quarter of 2016.
The total number of vessel operating days for the three months ended March 31, 2017 increased by 791 to 2,577 compared to the same period in the prior year, representing a surge of 44%.
“Fleet growth, which exceeded 6% over the past 12 months based on deadweight tonnage, is expected to slow to beneath 2% over the next twelve months. In the meantime, the demand outlook for 2017 and beyond is encouraging with increasing demand from Asia and acceleration in new long‐haul chemical production capacity in the Middle East and the US,” Busch added.
Navig8 Chemical informed that the remaining three ships from the company’s newbuilding program of 32 chemical tankers are scheduled to be delivered by the middle of 2017.
Upon their respective deliveries, the company’s vessels have and will be deployed in commercial pools managed by the Navig8 Group, including the Chronos8, Delta8 and Stainless8 pools.