VLCC sale hurts ITC

Independent Tankers Corporation (ITC) has been pushed to a bigger loss in the first quarter after selling one of its VLCCs.

The Frontline-owned company said the net deficit to 31 March was $18.47m, compared to $1.78m in 2013.

The five VLCCs and three suezmaxes brought in revenue of $18.95m, from $15.03m the year before, but it booked a loss of $15.7m on the sale of the 309,995-dwt Ulysses (built 1999).

Three VLCCs earned $26,100 per day in the spot market, compared with $13,100 in the preceding quarter. The bareboat rate was unchanged at $20,000 per day

But cash breakeven for the rest of 2014 is $32,600 per day for the three spot-trading VLCCs and $21,300 per day for the two VLCCs on bareboat charters.

All five VLCCs will be trading spot this year.

ITC warned: “With recent earnings being lower than the cash breakeven rates for the spot trading vessels, the company will have to draw on the restricted cash reserves to operate these vessels."