Bermuda-based tanker operator Team Tankers International has finalized the sale of two of its vessels and chartered one to replace the capacity.
During the second quarter of 2017, the company agreed to sell the 8,674 dwt Tour Margaux, part stainless and part epoxy coated ship. The transaction closed and the 1993-built ship was delivered to the buyer in July.
Subsequent to the quarter, the company sold the 2007-built Sichem Dubai, which features 12,888 dwt, immediately prior to its upcoming special survey. To replace the capacity, the company time chartered the 12,959 dwt Leon M for less than 12 months in July.
Team Tankers unveiled the changes in its fleet as part of the second quarter of 2017 financial report, in which it revealed a net loss of USD 7.1 million in the quarter, compared with a net loss of USD 6.6 million seen in the first quarter of the year.
The average time charter equivalent rate for the fleet was USD 10,258 per day this quarter, compared with USD 10,665 per day in the previous three-month period. Total freight revenue stood at USD 60.6 million in the quarter ended June 30, against USD 63.4 million seen in the first quarter of the year.
“The company has not seen any meaningful and sustained improvement in freight rates since the downturn in the chemical tanker market began in the second quarter of 2016,” Hans Feringa, President & Chief Executive Officer of Team Tankers, said.
Furthermore, under a program that began in August, the company said it is authorized to repurchase up to USD 10 million in TEAM shares. In the second quarter of 2017, it repurchased 10,000 outstanding shares of its stock at an average price of NOK 10.00 per share.
In August, Team tankers repurchased 2,816,777 outstanding shares of its stock at an average price of NOK 11.00 per share.
On August 17, the Board of Directors authorized the company to extend its share repurchase program with a new authority to buy up to USD 15 million and no more than 15,000,000 shares. The program period runs from August 19, 2017 and ends on August 18, 2018.