Due to a soft chemical tanker sector, the chemical shipping company Navig8 Chemical Tankers reported a drop in net income to USD 3.7 million for the three months ended September 30, 2016, compared to a net income of USD 9.6 million seen in the same quarter of 2015.
The company said that the decrease in net income is mainly attributable to lower gross average daily time charter equivalent (TCE) rates achieved in the three months, partially offset by an increase in total operating days compared to the same period in the prior year.
Revenue for the period stood at USD 35.8 million, compared to revenue of USD 28.7 million reported a year earlier, while the total number of vessel operating days for the three months increased by 857 to 2,140 compared to the same period in the prior year.
“The chemical tanker sector remained soft in the third quarter as refinery maintenance season continued. The result was fewer cargoes and greater competition, a dynamic exacerbated by a weak CPP sector that limited opportunities for swing tonnage to tighten chemical tanker supply,” said Nicolas Busch, Chief Executive Officer of Navig8 Chemical Tankers Inc.
During the quarter, Navig8 Chemical Tankers expanded its fleet with the delivery of one 49,000 dwt IMO2 Interline‐coated chemical tanker, Navig8 Topaz and one 25,000 dwt stainless steel chemical tanker, Navig8 Sky.
Additionally, another 49,000 dwt IMO2 Interline‐coated chemical tanker, Navig8 Tourmaline, and two 25,000 dwt stainless steel chemical tankers, Navig8 Spark and Navig8 Stellar, were added to the company’s fleet in October.
Furthermore, the shipping firm entered into sale and leaseback agreements with subsidiaries of Japan‐based SBI Holdings Inc. for two 25,000 dwt stainless steel chemical tankers for net proceeds of USD 74 million, and cancelled the construction contracts for five IMO2 49,000 dwt Interline‐coated medium range tankers at STX Offshore & Shipbuilding Co., Ltd.