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NEWS BULLETIN
TANKER SHIPPING
butane to India and a transpacific cargo of US ethane to China; both of these are thought to be the first time ships of this size have handled such exports, which are adding substantially to tonne-mile demand in the sector. Timecharter rates have responded, rising by $200,000/ month from end June to end September to reach $740,000/month. www.navigatorgas.com EPIC GETS PREPARED
BIG BUCKS FOR BW
BW LPG has reported its highest ever quarterly net profit, posting a third quarter figure of $117m, on the back of what the company calls “outstanding commercial performance and a strong VLGC freight market”. That strength was supported by firm US LPG export volumes and high price spreads, with more to come once the new Enterprise terminal comes onstream. Those volumes are finding a ready market in the petrochemical sector in north-east Asia and in the retail sector across Asia. BW LPG therefore expects further increases in tonne-mile demand for its VLGCs, giving “a positive freight outlook for the remainder of 2019 and 2020”. BW LPG has meanwhile agreed to sell its two remaining large gas carriers, the 59,400-m3 sisters BW Nantes and BW Nice (both built in 2003). BW LPG will book a net gain of $9m on the deal. Brokers identify the buyer as TGO, formerly Texas Gas & Oil, which is involved in international LPG trading. www.bwlpg.com TEAM STEAMS AHEAD
Team Tankers International has posted third quarter EBITDA of $13.4m, up on the $11.8m recorded in the previous period and well ahead
HCB MONTHLY | DECEMBER 2019
of the $0.7m recorded for third quarter 2018. This came despite a slight decline in average timecharter equivalent rates from the second quarter figures. Hans Feringa, Team’s CEO, comments: “We finalised the sale of the last two of our five older MRs at attractive levels, concentrating our efforts on our younger, more sophisticated, deepsea assets. With the sale of the older MRs and certain intermediate ships, we have freed up capital for investment activity and positioned ourselves for 2020 with a more focused deepsea fleet. The divested asset prices in this quarter are at price levels well above what is implied by the third quarter traded share prices, further proving value for our shareholders. We will consider additional divestment and investment activity as we continue our positioning into 2020.” teamtankers.com NOVELTIES FOR NAVIGATOR
Navigator Holding has reported third quarter operating revenues of $75.6m, down on last year’s $80.8m, with adjusted EBITDA slipping from $30.4m to $29.5m. The company notes some interesting trade developments, with its medium-sized gas ships handling a cargo of US
Epic Gas has reported third quarter adjusted EBITDA of $13.5m, a slight decline on the $13.8m recorded a year ago. Revenues were strong at $47.1m, compared to $40.6m in third quarter 2018, but average timecharter equivalent earnings and tonnage loaded were both slightly down. CEO Charles Maltby notes that administrative costs were down, despite the larger fleet, and refinancings have put the balance sheet in a better position. Looking ahead, Maltby says: “As we come to the end of the year, we are finalising our preparations to be fully IMO 2020 compliant and turn our attention to IMO 2030 and IMO 2050. Alongside the positive supply demand fundamentals for global LPG trade, we expect that these new regulations and compliance may drive higher scrappage rates of older vessels. We are well positioned with an efficient and sustainable younger fleet.” www.epic-gas.com GOOD RETURN FROM DORIAN
Dorian LPG has reported revenues of $91.6m for its second fiscal quarter, ending 30 September, compared to $40.8m a year ago. Average timecharter equivalent earnings more than doubled from $20,973/day in second quarter 2018 to $47,623/day. “Expansion of US export capacity and increasing demand in Asia from both the domestic and petchem sectors continue to have a positive impact on freight rates, and our market outlook remains positive,” says John C Hadjipateras, chairman/president/CEO. “We now own four scrubber-equipped ships and expect a further five within the next three months. I am confident that the professionalism of our people and the quality of our ships will earn good returns for our shareholders.” www.dorianlpg.com
