Tanker Recovery Continues to Push Tanker Investments Ahead

Results were relatively on par with the first quarter of 2015, when the company reports its best quarterly profit since inception.

The ongoing recovery in the tanker sector alongside low oil prices have buoyed Tanker Investments second-quarter results, the company said. 

According to reports, the improving performance is expected to continue into 2016 as the sector bounces back, with the company having seen asset values increase in the last few months and projecting a strong outlook through winter of this year. 

"We expect tanker values to continue to rise in the second half of the year in tandem with the stronger freight market," said CEO William Hung. 

"With strong oil demand, partially led by oil prices, record-high global oil production and moderate fleet growth, we expect Tanker Investments' fleet to generate substantial cash flow during the second half of 2015 and into 2016."

Spot rates were said to have remained strong from the first quarter of 2015 into the second quarter of 2015, achieving the highest second-quarter levels in seven years.

As a result, revenues jumped to $42.6 million in the second quarter compared to $8.9 million this time last year, while net income improved to $16.7 million from a loss of $5.7 million. 

The company also reported that it had recently taken delivery of two modern Suezmaxes one month later than expected, but that the additions to the fleet came at a welcome time to take advantage of the current tanker market cycle. 

Another pair of Suezmaxes is also expected to be delivered mid-August, Tanker Investments said. 

"While crude tanker rates could potentially soften slightly into the end of the third quarter of 2015, as refineries enter scheduled maintenance, they are expected to remain strong relative to historical average third quarter rates," the company said. 

This quarter's figures are on par with the first quarter of 2015, when the company reported its strongest quarterly profit since its inception in 2014. 

At the time, the company reported that it saw revenues of $42.3 million and a net income of $19.1 million in the first three months of the year.