The company generated cash flow from vessel operations of $10.2 mill in 3Q16, compared to $27.1 mill in the previous quarter.
As of 30th September, 2016, TIL had total liquidity of $113.4 mill, comprised of cash and undrawn credit facilities.
“As expected, rates dropped in the third quarter due to a combination of scheduled refinery maintenance and production outages in Nigeria,” said William Hung, TIL’s CEO. “As these outages came back on-line in October, we saw an increase in rates for mid-size tankers and expect this trend to continue for the latter part of the fourth quarter.”
“We are pleased to announce that TIL is executing on the strategy we announced last quarter by chartering out the ‘Emerald Spirit’ Aframax tanker for 12 months and we are evaluating further opportunities as well.
“With a conservative financial profile including over $110 mill of liquidity, a young, modern fleet with a low cash breakeven level, we believe Tanker Investments is well positioned to weather the volatility we anticipate throughout 2017,” he said.
During 3Q16, total revenues decreased to $26.6 mill from $51.6 mill in 3Q15.
This decrease was primarily due to weakening spot tanker rates earned across the fleet in the third quarter and the effects of the sale of the ‘Hemsedal Spirit’ and ‘Voss Spirit’ in 1Q16. This was partially offset by revenues from the additional six Suezmaxes acquired during 3Q15.
During the first nine months of this year, total revenues decreased to $120.2 mill from $140.7 mill for the first nine months of 2015, due primarily to lower average tanker rates. The decrease was somewhat offset by the larger average fleet size operating in 2016.
TIL’s net income was $28.5 million for the nine month period, compared with $47.3 mill for the corresponding period in 2015.