Denmark-based shipping company Hafnia Tankers ended 2017 in loss mainly due to a weakened product tanker market witnessed during the year.
The company’s loss reached USD 11.6 million for the twelve months ended December 31, 2017, compared to a profit of USD 12 million reported in 2016. Operating profit for the period dropped to USD 14.4 million from USD 34.4 million seen in 2016.
Gross earnings per day during 2017 were USD 13,825 per LR1 vessel, USD 13,875 per MR vessel and USD 11,700 per SR vessel.
The product tanker market weakened during 2017, mainly influenced by a high supply of newbuilds. The fundamental demand for oil products continued to grow, however, most of the supply of oil products came from inventories, reducing the demand for transportation thereby causing a weak freight market.
At the end of the year, global inventories of refined oil products fell and were close to the five-year average inventory levels. Hafnia Tankers informed that this should lead to a better balance between supply of vessels and demand for transportation of refined oil products.