Monaco-based tanker owner Scorpio Tankers recorded a net loss of USD 27.1 million in the third quarter of 2016, compared to a net income of USD 85.3 million in the same period last year.

The loss is primarily attributed to low Time Charter Equivalent (TCE) revenue that halved in the third quarter of 2016, dropping to USD 114 million from USD 227.2 million in the same period last year.

According to the company, TCE revenue per day decreased across all of its operating segments as low refining margins, high inventory levels and a lack of arbitrage opportunities have resulted in reduced global product tanker demand.

In addition, other expenses, including vessel operating costs, depreciation expense as well as financial expenses contributed to the overall quarterly result.

During the third quarter of 2016, the company refinanced the aggregate outstanding indebtedness of USD 396.8 million under its 2013 credit facility and newbuilding credit facility.

As part of these transactions, Scorpio Tankers drew down an aggregate of USD 418.8 million under its NIBC Credit Facility, 2016 Credit Facility and DVB Credit Facility.

For the nine months ended September 30, 2016, Scorpio Tankers saw a net income of USD 4.7 million, against USD 183.5 million in the same period last year.