Gener8 Maritime, Inc. Announces Third Quarter 2016 Financial Results

By Finance

Gener8 Maritime, Inc. (NYSE: GNRT), a leading U.S.-based provider of international seaborne crude oil transportation services, yesterday announced its financial results for the three and nine months ended September 30, 2016.

Highlights

  • Recorded net income / (loss) of $(37.4) million, or $(0.45) basic and diluted earnings per share, for the three months ended September 30, 2016, compared to $33.2 million or $0.41 basic and $0.40 diluted earnings per share for the same period in the prior year. Recorded adjusted net income / (loss) of $(0.7) million, or $(0.01) basic and diluted adjusted earnings per share, for the three months ended September 30, 2016, compared to $37.3 million or $0.46 basic and $0.45 diluted earnings per share for the same period in the prior year.
  • Increased vessel operating days by 42.0% to 3,157 in the three months ended September 30, 2016 compared to 2,224 in the same period in the prior year.
  • Took delivery of four "ECO" newbuilding VLCCs, the Gener8 Chiotis, the Gener8 Macedon, the Gener8 Perseus and the Gener8 Oceanus, during the third quarter of 2016 and the Gener8 Miltiades and Gener8 Noble subsequent to the end of the quarter.
  • Sold the 2001-built VLCC tankers Genmar Vision and Genmar Victory for gross proceeds of $28.0 million and $29.0 million, respectively, and prepaid $38.8 million of debt associated with the two vessels.

Gener8 Maritime, Inc. Announces Third Quarter 2016 Financial Results

VLCC Gener8 Hera - Image courtesy of Gener8 Maritime

"In the third quarter, we continued our fleet renewal program 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, Chairman and Chief Executive Officer of Gener8 Maritime.

"Following the completion of our newbuilding program 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 International Maritime Organization ("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."

Leo Vrondissis, Chief Financial Officer, added, "Following the delivery of the Gener8 Noble on November 7, 2016, 17 of the 21 "ECO" VLCCs from our newbuilding program 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 million of debt in the third quarter, which will have a positive effect on our interest expense going forward."

Full report here

Source: Gener8 Maritime