US-based crude oil shipping company Gener8 Maritime recorded a net income of USD 26.9 million for the three months ended March 31, 2017, compared to USD 60.9 million seen in the same period in the prior year.
During the quarter, the company’s vessel operating days increased by 24.4% to 3,510, compared to 2,822 in the same period in the prior year. Additionally, full fleet ECO operating days were also up to 49% in the quarter, compared to 20% reported in the corresponding three-month period in 2016.
“We are pleased that our ECO vessels continue to earn a demonstrable premium. This is a significant competitive advantage for us, particularly as the market enters a somewhat weaker rate environment amplified by growth in the size of the global fleet,” Peter Georgiopoulos, Chairman and Chief Executive Officer of Gener8 Maritime, said.
Subsequent to the end of the quarter Gener8 Maritime said that it entered into a series of transactions that are expected to increase cash on the balance sheet by more than USD 82 million. The transactions include the company’s decision to sell two 2016-built VLCCs, the Gener8 Noble and the Gener8 Theseus, for expected combined gross proceeds of USD 162 million, as well as the deal to dispose of the 2002-built Aframax tanker Gener8 Daphne prior to the vessel’s special survey.
“We made a series of important decisions to provide us significant flexibility to manage our business. The resulting stronger financial platform will serve as a buffer through any extended market downturn and also allow us to be opportunistic going forward,” Leo Vrondissis, Chief Financial Officer, said.
Following the completion of the company’s newbuilding program, expected in the third quarter, and assuming no further changes to Gener8 Maritime’s fleet, the dwt-weighted average age of the fleet will be 4.9 years, and the VLCCs will have an average age of just 2.7 years.