The 1Q16 daily TCEs for the company’s Suezmaxes and Aframaxes were $34,800 and $27,600, respectively. For 2Q16, the Suezmaxes were 68% booked at a daily TCE of around $33,000.
During the quarter, Ridgebury purchased its eighth Suezmax for $22.5 mill using excess cash.
As of 31st March, 2016, RT Holdings owned two Aframaxes, six MRs and seven Suezmaxes, plus 36% of Ridgebury V4 (four VLCCs). Ridgebury Crude Tankers owned seven Suezmaxes and two Aframaxes.
Ridgebury said that it continued to generate strong earnings and cash flow during the first quarter of 2016, despite the charter rates being lower than the comparable period in 2015. Ridgebury Crude’s fleet of Suezmax and Aframax tankers traded in the spot market during the period, delivering low operating costs and a high on-hire performance of 99.5%.
Ridgebury Crude generated revenue of $26.4 mill and EBITDA of $19.5 mill for the quarter, while RT Holdings (consisting of the Suezmax, Aframax, VLCC and MR fleets) generated first quarter revenue of $55.7 mill and EBITDA of $30.4 mill. RT Holdings results were helped by VLCC spot market performance of $61,350 per day for the quarter.
The company also generated $12.7 mill in cash flow from operations during the quarter, holding a cash balance (restricted and unrestricted) of $30.4 mill at the end of 1Q16.
On 11th May, 2016, Ridgebury used excess cash (defined in the bond agreement as cash in the company’s reserve account in excess of $12.5 mill) to purchase an eighth Suezmax, a 2001 Hyundai-built vessel renamed ‘Ridgebury Alina L’.
The purchase was concluded immediately upon exit from the shipyard where she had undergone a drydocking and third special survey. This favourable drydock positioning meant that she will not have any significant scheduled off-hire until the next intermediate survey, anticipated to occur in late 2018 or early 2019.
The ship is on initial short-term employment, with management evaluating longer-term options, including pool and timecharter employment.
Currently, 68% of 2Q16 is booked at about $33,000 per day for Suezmaxes, and 57% at $24,000 per day for Aframaxes. These figures are likely to soften as the remaining days are booked, the company said.
Management forecast a 2Q16 EBITDA of $13 – $16 mill for Ridgebury Crude Tankers and $23 - $26 mill for RT Holdings.