Shipping company Navig8 Product Tankers has reported a net loss of USD 5.8 million in the third quarter of the year, against a net income of USD 17.8 million seen a year earlier, amid weak product tanker markets.
“Product tanker markets exhibited weakness in the third quarter due to high inventory levels and decreased refinery utilization typical during the summer,” Nicolas Busch, Chief Executive Officer of Navig8 Product Tankers, said.
He added that these factors contributed to a lack of arbitrage opportunities. However, Busch said that, although some of these conditions have continued into the fourth quarter, “the outlook for the product tanker market remains favorable with global oil demand growth and refinery capacity additions in Asia, the Middle East and the U.S. forecast to drive demand for product tankers.”
The shipping firm reported an increase in revenue for the three months ended September 30, 2016, which stood at USD 29.1 million, against a revenue of USD 11.8 million seen in the three-month period in 2015.
Regarding the company’s newbuilding program, Busch said that Navig8 Product Tankers took delivery of four newbuilding vessels during the quarter and two more in October 2016, however, in light of construction delays on certain GSI deliveries, “we now anticipate taking delivery of the remaining five newbuildings during Q4 2016 and into Q1 2017.”
Upon their respective deliveries, the company’s vessels will be deployed in the LR8 and Alpha8 commercial pools, both managed by Navig8 Group.
The company has taken delivery of eleven LR1 and eleven LR2 product tanker newbuildings to date.