Strengthening Jones Act fundamentals - AMSC

Aug 30 2019


American Shipping Company (AMSC) has announced stable second quarter 2019 bareboat revenue of $21.9 mill, plus a backlog of secured bareboat revenue of $259.2 mill with three years of average weighted tenor.

Normalised EBITDA was $21.9 mill and adjusted net profit was $2.5 mill.

The company reported that strengthening Jones Act tanker market fundamentals resulted in new timecharter fixtures close to $60,000 per day.

The closure of Philadelphia Energy Solutions (PES) refinery will have minor impact on Northeast crude voyages, as most barrels were imported from abroad, AMSC said.

In addition, scrapping continued with the removal of another two older ATBs from the Jones Act market.

AMSC CEO, Pål Lothe Magnussen commented, “We are pleased to report yet another quarter with stable returns, and it is encouraging to see that the overall market dynamic is playing out as expected with two more ATBs retired, and new timecharter contracts being secured at higher levels compared to last fall.

“We expect this market development to continue going forward, resulting in gradually improving market conditions,” he said.

 



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