Navig8 Chems Still in the Red
Driven by lower time charter equivalent (TCE) rates, chemicals transportation company Navig8 Chemical Tankers suffered a net loss of USD 3.6 million in the second quarter of this year, compared to a net income of USD 9.6 million posted in the same period a year earlier.
This is the third consecutive quarter Navig8 Chemical Tankers ended in loss. The company recorded a loss of USD 1.2 million in 1Q 2017 and a loss of USD 3.6 million in 4Q 2016.
The company’s revenue for the three months ended June 30, 2017, stood at USD 38.4 million, compared to revenue of USD 39.9 million seen in the same quarter of 2016.
Navig8 Chemical Tankers said that TCE rates earned by the A-Class, V-Class, T-Class and S-Class vessels in 2Q 2017, were USD 14,135, USD 14,016, USD 15,406 and USD 16,608 per day, respectively. The company had 31 vessels operating during the three-month period, all of which operate in pools from which they derive TCE revenue.
“The chemical tanker market has stabilized since the start of the year, albeit at relatively low levels, after weakening throughout 2016,” Nicolas Busch, Chief Executive Officer of Navig8 Chemical Tankers, commented.
“Global fleet growth has outpaced demand growth, although this is expected to change as supply growth for large chemical tankers is forecast to slow significantly over the next 12 months. The demand environment is also positive as forecasted growth is dominated by longer haul trades with strong growth in methanol imports into China,” Busch added.
On May 19, the company entered into a second sale and leaseback transaction with SBI for two 25,000 dwt stainless steel chemical tankers being built by Japanese Fukuoka Shipbuilding.
Additionally, on May 31, Navig8 Chemical Tankers inked sale and leaseback agreements with CMB Financial Leasing for two of the company’s 25,000 dwt stainless steel chemical tankers.
Established in 2013 as a joint venture between the Navig8 Group and funds managed by Oaktree Capital Management, Navig8 Chemical Tankers has taken delivery of 31 chemical carriers and anticipates delivery of its full 32-vessel fleet in the third quarter of 2017.