Team Tankers Sells Three Units, Widens Second Quarter Loss

zoomSource: Flickr – under the CC BY-NC-SA 2.0 license; Image by: Christopher Ebdon

In May 2019, the company agreed to sell the 13,079 dwt Sichem Paris. The 2008-built vessel was renamed Masagana and delivered to its new owner in July. It was time-chartered back to the company for a period of two years.

Following the sale, the long-term debt of USD 3.4 million was repaid relating to the sale of the unit.

Additionally, Team Tankers agreed to sell the 44,999 dwt Tambourin and the 44,999 dwt Team Tarantella.

Delivery of the 2004-built Tambourin to its buyer is expected in the third quarter of 2019, while the 2002-built Team Tarantella is set to join its new owner in the fourth quarter.

The company recorded estimated losses upon delivery of these vessels in 2019 of USD 6.9 million.

Team Tankers unveiled the changes in its fleet as part of the company’s second quarter of 2019 financial report.

Net loss in the three-month period was USD 17.4 million, compared with a net loss of USD 7.9 million reported in the first quarter of 2019. The average time charter equivalent rate for the fleet was USD 11,611 per day this quarter, compared with USD 12,123 per day in the previous quarter.

EBITDA for the period stood at USD 11.8 million, compared with USD 14 million seen in the first three months of 2019.

“We freed up capital by divesting certain intermediate and older deep sea tonnage, leaving us with a more focused and attractive fleet and additional capital for investment activity. The divested asset prices are at levels well above what is implied by the 2nd quarter traded share price, proving value for our shareholders,” Hans Feringa, Team Tanker’s CEO, said.

“We will consider further divestment and investment activity as we position ourselves for 2020, with emphasis on becoming a more focused deep sea shipping company.”