Newbuilds Drive Gener8 Maritime’s Profit Increase
Crude oil shipping company Gener8 Maritime recorded a 91% increase in its quarterly net income to USD 38 million, compared to USD 19.9 million seen in the same quarter a year earlier.
The average daily spot TCE rates obtained by the company’s Very Large Crude Carrier (VLCC) fleet, including its vessels that were within Navig8 pools, was USD 44,806 for the three months ended June 30, 2016, representing an increase of 9.6% from the same period a year earlier. The average daily TCE rate increased by USD 698 to USD 35,825, compared to USD 35,127 for the prior year period.
The company’s voyage revenues dropped by USD 10.5 million to USD 105.9 million for the three months ended June 30, 2016, compared to USD 116.5 million for same period in 2015.
During the quarter, Gener8 Maritime amended its Sinosure Credit Facility, which together with the company’s Korean Export Credit Facility, provide the requisite debt financing to fund the remainder of the newbuilding program.
As Gener8 Maritime took delivery of three ECO VLCCs, the Gener8 Nautilus, the Gener8 Andriotis and the Gener8 Constantine, in the second quarter, “more than half of our newbuilding fleet is now on the water. Our earnings potential has increased significantly, which is evident in our financial results,” said Peter Georgiopoulos, Chairman and Chief Executive Officer of Gener8 Maritime.
When the company’s entire newbuilding program is completed, which is expected in early 2017, and the sale of the 2001-built Genmar Vision is finalized, the dwt-weighted average age of Gener8 Maritime’s fleet will be 4.7 years, while its VLCCs will have an average age of just 2.6 years.
The company has a fleet of 45 wholly-owned vessels, which is comprised of 10 VLCC newbuildings and 35 vessels on the water consisting of 18 VLCC, 11 Suezmax, four Aframax, and two Panamax tankers, with a total carrying capacity of approximately 10.8 million dwt.