Adjusted net operating earnings came in at $4.4 mill for 1Q18, down from $11.2 mill in 4Q17.
NAT’s net debt at the end of 1Q18 stood at about $266 mill, equal to about $8.9 mill per vessel.
The TCE for the Suezmaxes during 1Q18 was $11,200 per day per ship.
The company claimed it was concentrating on keeping costs down. The average age of the fleet is about 13.5 years; 10 units (including the three newbuildings) were built from 2010 onwards, 13 units were built between 2000 and 2009 and the remaining 10 were built in the late 1990s.
NAT recently circulated two of the older vessels for sale.
The company explained that its existing revolving credit facility (RCF) dates back to 2004, when NAT had only four vessels in the fleet. This facility has become outdated and is getting restrictive for the business. The objective is to retire the existing RCF and replace it with a new financing.
The recapitalised programme will be finalised by the end of 2Q18. When completed, this initiative should improve the company’s financial flexibility going forward, NAT said.
The world Suezmax fleet (excluding shuttle & product tankers) was 495 vessels at the end of 1Q18, following an increase of two vessels in the quarter. The total delivery during 2017 was 50 units, which was a peak year for deliveries. For 2018, NAT forecast 25 deliveries, and in 2019, some17 vessels are due to enter the feet.
A strong balance sheet, combined with a homogenous fleet and economies of scale were giving a low cash break-even level, NAT claimed.