The company also recorded an adjusted net loss of $0.7 mill, compared to an adjusted net income of $37.3 mill in 3Q15.
Adjusted EBITDA for 3Q16 decreased by $13.4 mill to $34.9 mill, compared to $48.3 mill for the same period in 2015.
The average daily spot TCE rate obtained by the company's VLCCs, including the vessels operating in the Navig8 pools, was $27,493 for 3Q16, a decrease of $28,354 from 3Q15.
During the period, Gener8’s ECO VLCC fleet earned an average daily TCE of $28,471, and the company's non-ECO VLCC fleet earned an average daily TCE of $25,199.
The average daily TCE rate obtained on a full-fleet basis decreased by $13,535, or 38.2%, to $21,887 for 3Q16, compared to $35,422 for the previous year’s period.
Voyage revenues decreased by $17 mill, or 19.1%, to $72.3 mill for 3Q16, compared to $89.3 mill for 3Q15. Voyage expenses decreased by $7.3 mill, or 70%, to $3.2 mill for the three months ended September 30, 2016, compared to $10.5 mill in the corresponding period of 2015.
"In the third quarter, we continued our fleet renewal programme with the sale of two 2001-built VLCCs. At the same time, we expanded our fleet with the delivery of four ECO VLCCs in the third quarter and two more in the fourth quarter," said Peter Georgiopoulos, Gener8 Maritime chairman and COO. "Following the completion of our newbuilding programme expected early next year, the dwt-weighted average age of our fleet will be 5.9 years, and our VLCCs will have an average age of just 3.1 years, giving us the youngest and most modern VLCC fleet among our public company peers.
“One of the key advantages of our ECO design vessels is increased fuel efficiency, which was a positive driver of the TCE rates we achieved in the third quarter in a relatively weak rate environment. We believe this advantage will become more pronounced once the (IMO) mandate to reduce sulphur content of marine fuel by approximately 85% goes into effect. This mandate – a landmark decision for the protection of our environment – could result in a doubling of the price of marine fuel and will have a dramatic effect on the shipping industry.
Under the IMO mandate, the expected cost savings attributable to our fuel-efficient vessels is expected to increase, furthering our competitive position in the market and increasing the premium charter rate for ECO VLCCs," he said.
Leo Vrondissis, CFO, added, "Following the delivery of the ‘Gener8 Noble’ on 7th November, 2016, 17 of the 21 ECO VLCCs from our newbuilding programme have been delivered. Coincident with these deliveries, our daily direct operating expenses have declined for four consecutive quarters, highlighting one of the benefits of operating a young, modern fleet that requires less maintenance and repairs.
“Additionally, in conjunction with the sales of the ‘Genmar Vision’ and ‘Genmar Victory’ we prepaid $38.8 mill of debt in the third quarter, which will have a positive effect on our interest expense going forward," he said.