Finance Expenses News

Rickmers Maritime incurred a loss of US$55.6m in the second quarter, wider than the year earlier $15.7m on the back of a non-cash impairment charge as charter market conditions deteriorate. The Singapore-based consider is planning to lay up some of the 11 containerships it has operating in the spot market to save costs when the vessels are redelivered. Charter revenue fell 37 per cent to $18 million, due to reduced charter rates and lower vessel utilisation rates. The company’s net loss for the first half of this year was  $56.9 million, compared to $8.6 million during the first six months of last year. Additionally, charter revenue in the six-month period this year was $ 39.3 million, compared to $57.1 million in the first half of 2015.

For the 3 months ended 31 March 2016, Nordic Shipholding A/S generated a profit after tax of USD 1.5 million, compared to USD 2.7 million in the same quarter last year. The average daily TCE rate earned by the vessels in the Handytankers Pool was below the forecasted daily rate, and also lower than the rates earned during the same period in 2015, whilst the LR1 vessel (Nordic Anne) tracked the forecasted daily rate. The softer tanker market led to a decline in gross revenue primarily from the vessels in the Handytankers Pool, and TCE earnings dropped to USD 8.5 million (USD 9.2 million) in Q1 2016. EBITDA decreased to USD 4.2 million (USD 5.2 million) due to the reduction in TCE earnings and higher vessel operating cost in Q1 2016.

Container ship owners & charterers out Rickmers Maritime describe a stable set of results in the first quarter of 2014. Charter revenue decreased slightly by 4% from the US$35.5 million reported for the first quarter ended 31 March 2013 to US$33.9 million, largely due to the redelivery of two vessels during the period. In the lead up to their new charters to Maersk Line, the two vessels, Henry Rickmers (formerly Ital Fastosa) and Richard Rickmers (formerly Ital Festosa) spent 19.7 days and 31.3 days respectively as at 31, March 2014 for preparation and positioning. In addition, the fleet incurred a total of 31.1 days of unscheduled off-hire, with Kaethe C. Rickmers incurring 20.0 days of off-hire due to engine problems. As a result, fleet utilisation for 1Q2014 fell to 94.3%.

KNOT Offshore Partners reports net income of $7.9 million and operating income of $10.0 million for the fourth quarter of 2013, as compared to net income of $1.5 million and operating income of $5.7 million for the same period in the prior year. They add that all vessels operated well throughout the quarter with 98.5% utilization (3.5 days offhire). Operating income increased by $4.3 million and finance expenses decreased by $1.5 million in the fourth quarter of 2013 compared to the fourth quarter of 2012.

Shuttle tankship owners and operators KNOT Offshore Partners report net income of $6.4 million and operating income of $9.4 million for the third quarter of 2013, as compared to net income of $0.2 million and operating income of $9.1 million for the same period in the prior year. On November 14, 2013, KNOT Offshore Partners paid a quarterly distribution of $0.4350 per unit with respect to the quarter ended September 30, 2013. This corresponds to a distribution of $1.74 per unit on an annual basis.

FSL Trust, in its second quarter of 2013 financial report ending 30, June 2013, records a drop in revenue & a higher loss due mainly to default in lease payments for 2 crude oil tankers. During the quarter, the lessees of the Trust’s two crude oil tankers defaulted on their lease payments. Nevertheless, the Trust’s other 23 vessels were fully employed, generating revenue from long-term bareboat charters, time charters and pool employment. FSL Trust recorded an operating loss of US$1.0 million compared with an operating profit of US$4.0 million in the corresponding period last year. After taking into account net finance expenses, the Trust incurred a net loss of US$7.2 million in 2QFY13.

FSL Trust Management Pte. Ltd. (FSLTM), as trustee-manager of First Ship Lease Trust, announced the financial results of FSL Trust for the quarter ended 31 March 2013. Revenue for 1QFY13 declined by 11.6% to $23.0 million (USD) compared to the corresponding quarter last year. In 1QFY13, all the trust’s vessels continued to generate revenue from their respective employments on bareboat charters and time charters as well as in the ‘Nordic Tankers 19,000 Stainless Steel Pool’ (Nordic Pool). On a bareboat charter/bareboat charter equivalent (BBCE) basis, revenue fell 4.0% to $19.9 million compared to 1QFY12. The rentals received from 20 vessels leased on long-term bareboat charters continued to support the overall earnings of FSL Trust.

Deploys all redelivered vessels on longer term employment. FSL Trust Management Pte. Ltd. (“FSLTM”), as trustee-manager of First Ship Lease Trust (“FSL Trust” or the “Trust”), has announced  the financial results of FSL Trust for the third quarter ended 30 September 2012 (“3QFY12”). In 3QFY12, FSL Trust successfully delivered its three chemical tankers into the ‘Nordic Siva’ pool as well as a second product tanker, FSL Hamburg, to Petròleo Brasileiro S.A. (“Petrobras”) for the commencement of her three-year time charter. Prior to their redeployment, these vessels were trading in the spot market where earnings were more volatile. Revenue declined 6.5% to US$26.7 million against the same period last year.

Double Hull Tankers, Inc. announced results for the period from January 1 to March 31, 2006. Total revenues for this period were $24.2 million and net income was $11.7 million, or $0.39 per share (diluted). On October 18, 2005, having completed its initial public offering, DHT acquired seven double hull crude oil tankers from Overseas Shipholding Group, Inc. (OSG) and commenced operations as an independent tanker company. DHT's modern fleet consists of three Very Large Crude Carriers (VLCCs) and four Aframax tankers. From the same date, all seven vessels have been chartered to OSG for periods ranging from five to six and one-half years.