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Tanker operator Hafnia has reported positive earnings for 2016, although the high supply of newbuildings reduced fleet utilization.

The Danish product tanker company reported an operating profit for the twelve months ended December 31, 2016 of $34.4 million ($77.1 million for 201[ds_preview]5) and a profit of $12.0 million ($59.6 million for 2015).

Fundamental demand for refined oil products remains healthy, however oil products being readily available in most regions in combination with a high supply of newbuilds have reduced the fleet utilization levels, hence spot earnings declined in the second half of the year.

Gross earnings during 2016 were $18,600/day per LR1 vessel, $14,600/day per MR vessel and $13,600 per SR vessel. Hafnia’s fleet grew from 30 to 34 vessels during 2016, as we took delivery of one SR vessel and three MR vessels. Hafnia expects to take delivery of three MR vessels in 2017.

The book value of the fleet, including newbuilds, as of December 31, 2016 was $1,076.8 million. As of December 31, 2016, we had $95.5 million in cash, $544.5 million of bank debt and $38.2 million in working capital, including $26.0 million in pool working capital.

The remaining capex for the newbuilds was $70.4 million. As of December 31, 2016, available undrawn bank financing to fund the newbuilds was $60.3 million and including cash, the newbuild program was fully financed.