Although product tanker rates started to recover in the first quarter of the year, Norway-based Navig8 Product Tankers ended the quarter with a net loss of USD 1.2 million, against a net income of USD 5.7 million seen a year earlier.
Despite the result, the company’s revenue for the period increased to USD 38.3 million from USD 22.9 million, while its net operating gain stood at USD 10.3 million, compared to USD 8.3 million reported in the first quarter ended March 31, 2016.
The total number of vessel operating days for the three months ended March 31, 2017 was 2,306 compared to 2,110 for the three months ended December 31, 2016 and 885 for the three months ended March 31, 2016.
“Product tanker rates began to rebound in the first quarter of 2017 as the pace of newbuilding deliveries abated and global inventories of refined products decreased,” Nicolas Busch, Chief Executive Officer of Navig8 Product Tankers, said.
“Demand in most product trades have remained relatively strong despite inventory destocking. With product tanker fleet growth expecting to slow dramatically and potentially contract beyond 2017, we expect the market to become increasingly tight as the year progresses,” Busch added.
The company’s fleet comprises seven 109,999 dwt LR2 product tankers built at Sungdong Shipbuilding & Marine Engineering and eight 113,000 dwt LR2 product tankers built at CSSC Offshore & Marine Engineering.