Oslo-listed chemical carrier group Team Tankers International says it is seeking growth opportunities after restructuring its business and gaining a strong balance sheet.
“As a result of the restructuring on 27 January 2015, the debt leverage of the company’s balance sheet is currently one of the lowest in the industry and positions us for growth. The company will now explore growth initiatives while endeavouring to further optimise the current fleet,” Team Tankers said in a statement.
The company, previously known as Eitzen Chemical, currently operates 44 ships of which it owns 33.
Figures released today show that Team Tankers had non-current liabilities of USD101.3 million at the end of June, while current liabilities amounted to USD87.3 million at the same time. The company’s balance sheet stands at USD668.8 million.
Team Tankers unveiled a net profit of USD4.6 million in 2Q15 compared with a loss of USD24.9 million during the same period last year. Revenues fell to USD79.4 million from USD90.0 million.
In 1H15, the profit rose to USD443.1 million from USD50.7 million a year earlier. However, the fresh figure was boosted by a USD443.1 million extraordinary income item that was part of the restructuring programme of the company, which included conversion of debt to equity and an injection of working capital. Revenues fell to USD161.4 million from USD177.0 million.
The company said the firm market conditions experienced towards the end of the previous quarter continued throughout 2Q15. “Further, the bunker prices continued at the low levels from the 1Q15, resulting in a continued upward trend in earnings. In June, the Middle East market strengthened, resulting in owners ballasting into the area. The chemical market in Asia remained firm, with healthy Chinese import activity.”
The market for smaller stainless steel vessels was also active in Europe, North Africa, and the Mediterranean, enabling the company to fix two to three weeks ahead at sound rates. The clean petroleum products (CPP) and dirty petroleum product (DPP) market in the Mediterranean was firm during the quarter.
“The overall market on the East Coast of North America kept the momentum from the end of the 1Q15 and continued to improve throughout the 2Q15. The Transpacific West market remained stable with strong market activity,” Team Tankers said.
“We expect a continuation of the market conditions from the 1H15 and that bunker prices will remain stable in 2H15.”