In 2Q17, the Net result was $-15.9 mill. The adjusted net operating loss was $ - 0.7 mill for 3Q17, compared to earnings of $15.2 mill in 2Q17.
During the period, vessel earnings were lower than in the preceding quarters. The TCE for 3Q17 was $10,600 per day per ship. During the quarter NAT had eight vessels in scheduled drydockings, which concluded the drydocking programme for this year.
During the 4Q17, by the beginning of November, a strengthening of tanker rates was seen with recent fixtures being concluded at $20,000 per day.
NAT is financially sound and is in the process of making its capital structure even more efficient in order to retain our flexibility and to further grow the company. The net debt at the end of 3Q17 stood at about $341.5 mill equal to about $11.4 mill per vessel, which is among the lowest in the industry, NAT claimed.
The company has signed the main terms with a major financial institution for a full financing arrangement for the three newbuildings due for delivery in June, August and October, 2018, respectively. NAT said it will be able to announce the final agreement later this month.
During 3Q17, NAT signed four timecharter contracts with major oil companies. The contracts are for various durations of up to two years, with floor rates above the company’s cash break-even and including profit sharing mechanisms.
As for the low sulfur fuel regulations due to enter force in 2020, NAT’s 33 Suezmaxes are fully compliant to run on 0.1% sulfur content or less.
A low oil price, above all driven by high crude oil volumes, is positive for NAT, the company said. The growth of the Far Eastern economies, including China and India, and their effect on tanker markets, is often underestimated. Some Far Eastern economies are located far from the supply sources for oil, which in turn can create favourable tonne/mile dynamics.
The world Suezmax fleet (excluding shuttle and product tankers) totalled 488 vessels at the end of 3Q17, following an increase of 15 vessels in the quarter. NAT said its expects 10 more to be delivered during 4Q17, bringing the total delivery during 2017 to 56 units., which will be a peak year for deliveries.
For 2018, NAT expected 33 vessels, and in 2019 another seven Suezmaxes are due for delivery. The order book is almost entirely made up of established industry players, and the absence of speculative orders is a positive feature, the company claimed.