This was attributed to the steady erosion in the value of the LSC’s fleet last year, declining by $24.13 mill, the company said.
LSC’s revenue increased to $99.71 mill last year from $92.84 mill year-on-year, due to slightly higher earnings from existing timecharters negotiated during the stronger shipping cycle in mid-2015.
As a consequence of more vessels trading on the spot market, the net operational revenue increased overall by $2.7 mill.
LSC’s fleet remained unchanged at 16 vessels. LSC Group’s subsidiary, LSC Shipmanagement was appointed to technically manage the owned fleet, as well as seven third party tankers thus bringing the number of vessels under technical management to 23.
The fleet’s operating profit for 2016 rose slightly to $53.73 mill from $52.4 mill in 2015, due to higher timecharter income from contracts signed at attractive rates throughout 2015.
In December, 2016, LSC reached agreement with a syndicate of three banks to re-finance the remaining outstanding balance under the existing $360 mill loan facility, which is due to mature in June, 2017.
Subsequently, LSC secured $121 mill from the syndicate and simultaneously repaying the previous loan.
The new loan has been issued with a repayment deadline of 30th June, 2022.
“We are delighted to have completed the refinancing of 14 vessels in our fleet of 16 handy and medium sized tankers. This new loan facility enables the company to plan ahead whilst managing our cash flow in a challenging market,” said Robert Kirkup, LSC board chairman.
LSC reached an agreement at the end of last year with a syndicate of three banks – HSH Nordbank (as an agent), DVB Bank and Skandinaviska Enskilda Banken (Stockholm) – on the main terms and conditions of the contract on refinancing the $360 mill loan facility, which matures in June, 2017. The outstanding balance at the time of refinancing was $121 mill.