Navig8 Chemical Tankers sank deeper into loss in the second quarter of 2018 due to lower gross average daily time charter equivalent (TCE) rates.
Net loss widened to USD 5.7 million for the three months ended June 30, 2018, compared to a net loss of USD 3.6 million seen a year earlier. The change is mainly attributable to lower gross average daily TCE rates achieved by the A-Class and S-Class vessels, partially offset by an increase in total operating days compared to the same period in the prior year, and year-on-year increases in vessel operating expense, depreciation and interest expense.
The TCE rates earned by the A-Class, V-Class, T-Class and S-Class vessels for the three months ended June 30, 2018, were USD 13,451, USD 14,299, USD 15,658 and USD 15,184 per day, respectively.
The company’s revenue for the quarter reached USD 40.4 million, rising from USD 38.4 million reported in the same period in 2017. The total number of vessel operating days for the three months ended June 30, 2018 increased by 202 to 2,891 compared to the same period in the prior year.
“While there was a noteworthy level of chemical and product market movements out of the Middle East, combining both COA-related and spot volumes, weaker activity levels in other core trading regions resulted in an unremarkable chemical tanker market in the second quarter,” Nicolas Busch, Chief Executive Officer of Navig8 Chemical Tankers, said.
“We expect the Middle East market to remain relatively firm in the near-term. Coupled with some positive early signs of market improvement in the third quarter, significant new petrochemical infrastructure demand emerging in the US Gulf and demonstrably low orderbook growth, we are constructive on the earnings landscape for the company over the balance of the year.
All the Company’s vessels are deployed in commercial pools managed by Navig8 Group except for one S-Class Vessel, which is commercially managed by Navig8 Group and has been employed on time charter to a third party since December 2017.