New York-listed shipowner Scorpio Tanker h[ds_preview]as reported a GAAP net loss of $124.8 million for 2016, representing a huge improvement compared to 2015, where a GAAP net loss of $510.8 million was recorded. However, adjusted net loss increased.
Scorpio said that excluding a loss/write off of vessels and assets held for sale of $12.4 million, a write off of deferred financing costs on credit facilities that will no longer be used of $2.5 million and a charterhire contract termination fee of $10.0 million, adjusted net loss for 2016 was $99.9 million – after a net loss of $71.8 million in the year before.
TCE revenue was $78.4 million for 2016 and is associated with a day weighted average of 36 vessels owned and three vessels time chartered-in compared to $61.7 million during the prior year, which was associated with a day weighted average of 16 vessels owned and 12 vessels time chartered-in. TCE revenue per day was $5,789 and $7,173 for 2016 and 2015, respectively. »The decrease in TCE revenue per day was due to the depressed market in which we operated for most of the year. Overall TCE revenue increased versus the prior year despite the lower rates due to the increase in revenue days associated with the growth of our fleet«, Scorpio said in a statement.
Vessel operating costs were $68.8 million, including approximately $2.8 million of takeover costs associated with new deliveries and $2.2 million of other non-recurring expenses and related to 36 vessels owned, on average during the period. Vessel operating costs for the prior year were $29.4 million and related to 16 vessels owned, on average during the period.
Charterhire expense decreased to $17.4 million in 2016 from $51.4 million in the prior year reflecting the reduction in the number of vessels time chartered-in. »During 2016 we recorded a $10.0 million charge to terminate four time charter-in contracts. Terminating these contracts reduced our cash outflow and had a positive impact on our future operating results as the contracts were at above current market rates. Of the two remaining time chartered-in vessels, one was redelivered in February 2017 and the other is expected to be redelivered in July 2017«, the shipowner added.
