Hafnia Says Product Tanker Market Weakened
The overall product tanker market weakened further during the second quarter of 2017, reflecting the ongoing imbalance between supply and demand of tonnage, said Denmark based Hafnia Tankers.
High inventories and reduced trading activity did not support any additional increase of freight rates, however we did see the start of reduced oil inventories by the end of Q2, which in combination with a reduced orderbook, as well as growing oil consumption, are needed for an improved market.
The product tanker market contributed Hafnia to an operating profit for the six months ended June 30, 2017 of $14.8 million and net profit of $2.3 million.
Hafnia’s share of the remaining capex for the newbuilds was $35.2 million. "As of June 30, 2017, we had a firm term sheet from a first-class bank to fund the newbuilds, and in combination with our cash balance the newbuild program was fully financed," said the company.
Gross earnings during the first half of 2017 were c.$14,650 per LR1 vessel, $14,700 per MR vessel and $13,175 per SR vessel.
As of June 30, 2017 Hafnia’s fleet consisted of 37 owned vessels and five chartered-in vessels. Vista Shipping, of which Hafnia Tankers has a 50% ownership, has two LR1 newbuilds on order, with expected deliveries in Q1 2019.