Net operating losses for the periods were $10.3 mill and $5.2 mill, compared with a profit of $17.6 mill and $51.2 mill in 2016, respectively.
Net voyage revenues were $39.1 mill for 2Q17, compared with $61.7 mill in 2Q16 and $94.3 mill in 1H17, compared with $138.4 mill in 1H16.
Average TCE for NAT’s Suezmax fleet was about $16,100 per day per vessel in 2Q17. The company claimed to maintain among the lowest cash break-even levels in the tanker sector of about $11,500 per day per vessel, including financial charges and cash G&A costs.
Going forward, NAT is considering a more diversified capital structure, including bond financing and other instruments.
NAT is scheduled to take delivery of three Suezmax newbuildings during the second half of 2018. An amount equivalent to 30% was paid cash on contract signature. The balance of $116 mill for the three ships will be paid at the time of delivery. NAT said that it had the financing arrangement for the three newbuildings under review.
The size of its fleet allows NAT to reap immediate and sizeable profits when the tanker market improves, the company claimed in its earnings statement. Currently, NAT has several vessels on timecharters with major oil companies.
NAT also said that it continued to maintain a strong balance sheet with low net debt and is focusing on keeping a low financial risk. At the end of 2Q17, the company had net debt of about $321 mill or about $10.7 mill per vessel based on a 30 vessel fleet.
Following the earnings release, NAT announced that it has entered into two timecharter arrangements with Shell Oil for a period of 18 months for each Suezmax, commencing in August/September this year. The terms of the confidential contracts include upside for both parties, as well as downside protection, the company said.
NAT now has three tiemcharters with Shell and six with large oil companies – from three months up to 18 months duration.
“We are pleased to announce these important contracts, which are examples of the confidence customers and partners in big oil have in NAT and our large fleet of Suezmax vessels. More or less all the time, we have ships in China. NAT is also doing work in India which is becoming increasingly more important.” said Herbjørn Hansson, NAT Chairman & CEO.