Navig8 Chemical Tankers Delivers Loss
Navig8 Chemical Tankers, a joint venture between the Navig8 Group and Oaktree Capital Management, has delivered a net loss in the quarter ended September 30, mainly due to lower rates.
The company’s net loss for the period was at USD 4.9 million, compared to the net income of USD 3.7 million, for the same three months of 2016. The decrease in net income is mainly attributable to lower gross average daily time charter equivalent (TCE) rates achieved in the period.
Revenue for the three months ended September 30, 2017 was USD 39 million, up from USD 35.8 million reported in the same quarter a year earlier.
The TCE rates earned by the A-Class, V-Class, T-Class and S-Class vessels in the quarter were USD 14,489, USD 12,933, USD 14,133 and USD 13,574 per day. The number represent a drop from the TCE rates seen in the same period a year earlier, when the ships earned USD 16,773, USD 17,514, USD 19,562 and USD 20,561 per day, respectively.
During the quarter, Navig8 Chemical Tankers completed its newbuilding program with the delivery of the 25,000 DWT stainless steel chemical tanker, Navig8 Sol, in August 2017. The ship was delivered under the sale and leaseback arrangements entered into with subsidiaries of SBI Holdings on May 19, 2017.
“Following the delivery of our final newbuilding vessel in August, Navig8 Chemical Tankers has one of the largest, most modern fleet of chemical tankers in the world,” Nicolas Busch, Chief Executive Officer of Navig8 Chemical Tankers, said.
“With growing demand for long haul trade and a rapidly declining rate of growth in the global fleet of large chemical tankers, market fundamentals are expected to tighten, which will provide a strong backdrop for operating our fleet,” Busch added.