The adjusted net loss was $32.1 mill, compared to $0.7 mill in 3Q16.
During the period, Gener8 increased the fleet ‘ECO’ operating days to 57.4%, compared to 35.6% in the same period of 2016.
The company also entered into an agreement to lower the final instalment payment for the ECO VLCC newbuilding ‘Gener8 Nestor’ by $19.3 mill and took delivery of the vessel on 9th October, 2017.
At the same time, Gener8 entered into a series of transactions aimed at increasing cash on the balance sheet by around $99.2 mill and reduce total debt by about $187.7 mill.
These transactions included the sale of five tankers for net cash proceeds of $65.9 mill after debt repayment of $124 mill and release of working capital from the Navig8 pools.
Subsequent to the end of the quarter, the company sold or entered into agreements to sell another four tankers for net cash proceeds of $33.2 mill after debt repayment of $63.8 mill and release of working capital from the Navig8 pools.
"We have taken a series of steps this year to enhance our fleet profile, increase liquidity, and improve our balance sheet," explained Peter Georgiopoulos, Chairman and CEO. "By the end of this year, we expect that over 75% of our fleet will be comprised of ECO VLCCs on a dwt basis.
“The incremental earnings potential of our ECO VLCCs has been demonstrated over a number of quarters in both weak and strong tanker markets. Combined with reduced breakeven costs, resulting from our unscheduled debt repayments, we believe that we have positioned Gener8 to stay competitive in the current weak rate environment and outperform the market when it recovers," he said.
CFO Leo Vrondissis, added, "It is important to note that almost all of the vessels we have sold this year were financed under the company's more expensive debt facility; this was done strategically to strengthen our balance sheet.
“In 2017 through the end of the third quarter, Gener8 has made unscheduled debt repayments of over $163 mill, and we expect to prepay approximately $64 mill of additional outstanding debt following vessel sales that have closed or are expected to close subsequent to the end of the third quarter.
“Also, following a period of approximately two years in which we lowered the debt outstanding in our Refi Facility from $581 mill down to approximately $188 mill after giving effect to the foregoing prepayments, quarterly scheduled principal repayments of this facility will decrease by approximately $11 mill. The effect will be a decrease in our total quarterly scheduled debt amortisation payments of approximately 33% from 30th June, 2017 to the beginning of 2018, which will have a significant positive impact on our daily cash breakeven amount."