Gener8 Maritime Adds New ECO VLCC, Earns Less in 2016

Image Courtesy: Gener8 Maritime

The US-based crude oil shipping company Gener8 Maritime has taken delivery of its ECO very large crude carrier (VLCC) the Gener8 Ethos, the 20th ship from the company’s 21 ECO newbuilding program.

Handed over on March 9, the 299,000 dwt tanker was constructed by South Korea’s shipbuilder Hyundai Samho Heavy Industries.

Featuring a length of 333 meters and a width of 60 meters, Gener8 Ethos was purchased from Navig8 Crude Tankers in January 2015, according to data provided by VesselsValue.

The company announced the delivery as part of its latest financial report, in which Gener8 Maritime said that it recorded a net income of USD 5.8 million for the three months ended December 31, 2016, down from USD 45.5 million seen in the fourth quarter of 2015.

The average daily spot TCE rates obtained by the company’s VLCC fleet were USD 36,282 in the fourth quarter and USD 40,130 in the full year of 2016. During the three months ended December 31, 2016, the ECO VLCC fleet earned an average daily TCE of USD 37,430, while the non-ECO VLCC fleet earned an average daily TCE of USD 32,419.

Net voyage revenue was USD 99.6 million for the three months ended December 31, 2016, substantially flat as compared to USD 100.7 million in the prior year period.

“As we continue to receive vessels from our newbuilding program, it becomes increasingly apparent that a two-tier market exists favoring modern, ECO vessels. For the second consecutive quarter, our ECO VLCCs earned between 10% and 15% more on an average daily TCE basis than our non-ECO VLCCs,” Peter Georgiopoulos, Chairman and Chief Executive Officer of Gener8 Maritime, said.

Since the end of the third quarter of 2016, the company took delivery of five ECO newbuilding VLCCs, including Gener8 Miltiades, Gener8 Noble and Gener8 Theseus in the fourth quarter of 2016, while Gener8 Hector and Gener8 Ethos joined the fleet subsequent to the end of the quarter.

Additionally, Gener8 Maritime sold the 2000-built Suezmax tanker Gener8 Spyridon in December 2016 for net proceeds of USD 1.8 million after prepaying USD 11.7 million of associated debt. The company also disposed of its 2003-built VLCC tanker Gener8 Ulysses in February 2017 for net proceeds of USD 10.2 million after prepaying USD 20 million of associated debt.

“Based on recent valuations, the remaining payment due on the final newbuilding VLCC is expected to be fully covered through available borrowings. Additionally, in conjunction with the sales of the Gener8 Spyridon and Gener8 Ulysses we have prepaid USD 31.7 million of debt, which will have a positive effect on our average vessel breakeven rates going forward,” Leo Vrondissis, Chief Financial Officer, said.

For the full year of 2016, Gener8 Maritime recorded a net income of USD 67.3 million, down from USD 129.6 million seen a year earlier, while its net voyage revenue increased to USD 392.1 million from USD 334.6 million reported in the respective periods.

The increase in net voyage revenues was primarily attributable to the increase in the company’s vessel operating days as a result of the deployment of 15 additional VLCC newbuilding vessels that were delivered during the year ended December 31, 2016.

Share this article

Follow World Maritime News

In Depth>


<< Apr 2017 >>
27 28 29 30 31 1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30

THE 30TH WORLD PORTS CONFERENCE Enabling Trade Energizing The World

This event is expected to have more than 500 attendees from the field of port, logistics, shipping and maritime industry…

read more >

Singapore Maritime Week 2017

Singapore Maritime Week (SMW) is the leading maritime event in Singapore. Driven by the Maritime and Port Authority of Singapore (MPA), SMW…

read more >

Breakbulk Europe 2017

For more than a decade, Breakbulk Europe has served as the networking hub for industry professionals who do business in Europe — or would like to! Exhibitors and sponsors include cargo owners, ocean carriers, freight forwarders, ports/terminals, heavy haulers, equipment companies and more that are involved in this specialized industry.

In addition to exceptional networking opportunities, Breakbulk Europe provides a dynamic conference, along with a range of educational and training workshops — intensive all-day classes held the day before the exhibition opens as well as many on-the-floor sessions.

  • Over 7,600 participants attended Breakbulk Europe 2016
  • Meet with over 400 exhibitors and sponsors
  • Hear from industry experts, including leading shippers, during the conference sessions
  • Learn new skills in the educational workshops held before the exhibition and on-the-floor micro-seminars and exhibitor-led sessions during the event

More info

read more >

Smart Operations

Smart Operations events, from Fathom Maritime Intelligence, examines how to use intelligent shared integration, and connected operations…

read more >