Fundamental demand for refined oil products remains healthy, however, oil products being readily available in most regions in combination with a high supply of newbuilds have reduced the fleet utilisation levels, hence spot earnings declined in the second half of last year, the company said.
The book value of the fleet, including newbuilds, as of 31st December, 2016 was $1,076.8 mill. As of the same date, Hafnia had $95.5 mill in cash, $544.5 mill of bank debt and $38.2 mill in working capital, including $26 mill in pool working capital. The remaining capex for the newbuilds was $70.4 mill.
As at the end of last year, available undrawn bank financing to fund the newbuilds was $60.3 mill and including cash, the newbuild programme was fully financed, Hafnia said.
Gross earnings during 2016 were about $18,600 per day per LR1, $14,600 per day per MR and $13,600 per Handysize tanker.
Hafnia’s fleet grew from 30 to 34 vessels during 2016, as one Handysize and three MRs joined the fleet. Hafnia said it expected to take delivery of three MR s in 2017.
Product tanker commercial management is undertaken by Hafnia Management. The three divisions – LR1, MR, and SR, total 90 ships under management, an increase of 15 over the previous 12 months.
As of 31st December, 2016, Hafnia’s fleet consisted of 34 owned vessels and five vessels chartered-in plus an order book of three newbuilds in addition to two vessels chartered-in to be delivered in 2017.