For the full year, the company reported a net loss of $5.2 mill, a decrease of $31.8 mill from a net income of $26.7 mill reported for 2015. Of the net income in 2015, $24.1 mill related to the gain on sale of three vessels.
The company completed a rights issue in December, 2016, raising a total of $30 mill and during 4Q16, took delivery of four newbuildings and two vessels in January, 2017.
"We are pleased to be nearing the end of our newbuilding programme with six vessels delivered since the end of the third quarter and a final vessel scheduled for delivery this quarter," said CEO Nicolas Busch.
"Despite a soft fourth quarter, product tanker market fundamentals are quite encouraging. There will be significant refinery capacity additions coming online in the near-term in the Middle East, and the product tanker orderbook as a percentage of the global fleet is at a very healthy level. Additionally, lack of capacity in certain crude oil trades is causing owners to switch vessels from the clean to dirty market, effectively removing competition from our primary trades," he said.
The company entered into contracts to acquire 30 modern, fuel-efficient newbuilding product tankers. During 2Q15, Navig8 Product Tankers sold three LR2s, which were under construction at Sungdong Shipbuilding & Marine Engineering, for total sale proceeds of $178.5 mill.
One of the three vessels was delivered to the buyer in 2Q15 and the other two vessels were delivered to the buyer in 3Q15, realising a total net gain on sale of $24.1 mill.
As of this week, 26 of these vessels have been delivered. The company anticipates taking delivery of its final newbuilding in March, 2017. Following this last delivery, all of the vessels will be deployed in the LR8 and Alpha8 commercial pools, both managed by Navig8 Group.
Revenue for 3Q16 was $30.2 mill, compared to $9.1 mill for 3Q15. The total number of vessel operating days for 4Q16 was 2,110, compared to 1,778 for 3Q16 and 364 for 4Q15.
The gross average daily TCE for the owned vessels were $13,205 and $16,153 for the LR1s and LR2s, respectively. These rates were achieved over an aggregate of 2,087 operating days. The average daily TCE earned by the chartered-in LR2 in 4Q16, was $16,445 per day up to her redelivery in October, 2016 on expiry of the timecharter.