Navig8 Product Tankers Sinks to Loss
Norway-based petroleum products shipping company Navig8 Product Tankers reported a full-year net loss of USD 5.2 million, a decrease of USD 31.8 million from a net income of USD 26.7 million seen in 2015.
Total operating revenue for the twelve-month period of 2016 amounted to USD 108.2 million, against 38.2 million recorded in the previous year.
During the fourth quarter of 2016, the company posted a net loss of 5.8 million, compared to a net income of USD 0.1 million in the same quarter of 2015. Additionally, total operating revenue for the quarter ended December 31, 2016, totaled 30.2 million, compared to USD 9.1 million seen in the same period of 2015.
“Despite a soft fourth quarter, product tanker market fundamentals are quite encouraging. There will be significant refinery capacity additions coming online in the near-term in the Middle East, and the product tanker orderbook as a percentage of the global fleet is at a very healthy level. Additionally, lack of capacity in certain crude oil trades is causing owners to switch vessels from the clean to dirty market, effectively removing competition from our primary trades,” Nicolas Busch, Chief Executive Officer of Navig8 Product Tankers, explained.
The firm took delivery of four newbuilding vessels during the three months ended December 31, 2016, and two ships in January 2017.
“We are pleased to be nearing the end of our newbuilding program with six vessels delivered since the end of the third quarter and a final vessel scheduled for delivery this quarter,” Busch said.
Navig8 Product Tankers has added to its fleet twelve LR1 and fourteen LR2 product tanker newbuildings. The company anticipates taking delivery of its final newbuilding vessel from its thirty-strong order in March 2017.
Following the last delivery, all of the company’s vessels will be deployed in the LR8 and Alpha8 commercial pools, both managed by Navig8 Group.