Tanker Investments ties up two suezmaxes

William Hung-led shipowner now has four of its 18-strong fleet on period charters.

Tanker Investments Ltd (TIL) has tied-up two of its suezmax tankers for a year each as it looks to offset the expected volatility in the tanker market.

The 156,870-dwt Tahoe Spirt (built 2010) and the 159,000-dwt Shenlong Spirits (built 2009) have been earning $19,750 per day since late-March and early April respectively, the shipowner confirmed Thursday.

TIL said the two fixtures has increased its fixed-rate coverage to 22% for the majority of 2017 which will help offset the weaker rates expect during the rest of the year.

News of the increased period cover came as TIL reported an 83% year-on-year decline in net profit for the first quarter of 2017.

Net income for the January to March period was just $3.2m versus the $18.7m seen in the same period in 2016.

Revenue fell by one-third to $34.1m as its spot chartered suezmax and aframax tankers saw daily time charter equivalent (TCE) rates fall 36.8% and 34.6% to $22,821 and $18,238 respectively.

“We generated earnings per share of $0.11 and almost $17m in cash flow on the back of relatively firm tanker rates, allowing us to reduce our leverage to under 42%,” said chief executive William Hung.