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Navig8 Chemical generated improved revenue

In its financial report for the fourth quarter and full year 2015, Navig8 Chemical Tankers delivered a positive bottom line and a revenue that continues to grow in step with the fleet. Coating and longer journeys are cited as ingredients for a positive annual report with solid prospects.

Photo: Navig8

Ships are being delivered and employed, and the revenue increases and pulls the bottom line up as well. This is a simple summary of Navig8 Chemical Tankers' annual report 2015. The carrier, which has all its vessels placed in the Navig8 Pool collaboration, achieved a net result of USD 9.1 million in the fourth quarter 2015, in which the revenue reached USD 35.3 million, according to the carrier's annual report.

For the full year, the company achieved a revenue of USD 81.7 million and a net result of USD 20.7 million. The carrier, which has an active fleet of 19 vessels, ordered another five newbuildings during the year, putting the total orderbook at 18 vessels. And these positive developments can be felt at the carrier, says CEO Nicolas Busch.

"We are pleased to report strong earnings results on the back of additional deliveries in our newbuilding program. Greater than half of our fleet has now been delivered, and we are beginning to generate substantial revenue," says the CEO.

The annual report shows that the average TCE rate in the fourth quarter for the major 49,000 dwt chemical tankers came to USD 21,440 per day, while the slightly smaller 37,000 dwt A Class vessels sailed at USD 21,654 per day.

Coating and longer journeys

And the carrier is facing positive prospects going forward, notes CEO Nicolas Busch, pointing to, among other things, the carrier's decision to invest in a special type of coating for the tanks in the chemical tanker vessels - a coating that is now gaining growth and increased acceptance, explains the CEO.

"The increasing acceptance of vessels with Interline coatings among leading chemical industry participants as well as the continued increase in long-haul petrochemical trades, particularly the growing movement of methanol cargoes from the Caribbean and U.S. Gulf to Asia, has us very optimistic about our strategic position," he says in the report.

"We remain bullish on our outlook for increasing long-haul trades as additional chemical manufacturing capacity comes online in the US and Middle East and China transitions from an industrial to a consumer led economy," says Nicolas Busch, adding that Navig8 Chemical's investment in five additional 49,000 dwt chemical tanker vessels should be seen as a response to this development.

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