Team Tankers International Ltd. : 2nd Quarter 2018 Results
August 16 2018 - 10:43PM
August 16, 2018
Team Tankers International Ltd.
Announces 2nd Quarter 2018
Results
2nd Quarter 2018
results
Team Tankers
International Ltd. (OSE: TEAM) reported EBITDA for the 2nd quarter of
$6.7 million, compared with $2.5 million in the 1st
quarter of 2018 (Q2'17: $3.1 million). Net income in the
2nd quarter of
2018 was $4.4 million compared with a net loss of $7.3 million in
the 1st quarter of
2018 (Q2'17 net loss: $7.1 million). The average time charter
equivalent rate for the fleet was $11,316 per day this quarter,
compared with $10,610 per day in the previous quarter.
On April 4, 2018, the Company
completed the acquisitions of Laurin Shipping AB and Anglo-Atlantic
Steamship Company Ltd. significantly increasing the size of the
fleet and the scope of Team's commercial and technical operations.
The acquisition of the Anglo-Atlantic fleet secured a
critical mass of sophisticated MRs and a broad portfolio of
contracts of affreightment which, combined with Team Tanker's
deep-sea chemical transportation expertise, creates a leading
player in the long-haul transportation of chemical and clean
petroleum product cargoes.
Team's CEO, Hans Feringa,
commented "We have successfully integrated the Team and Laurin
operations and have established commercial and operational hubs in
Copenhagen, Houston and Singapore. We expect annualized cost
savings in excess of $7 million to be realized through the
combination with roughly half coming from overhead eliminations and
half from operational and technical cost initiatives. We have
also moved the first Team ship on to our new in-house technical
ship management platform and we plan to move three more ships by
the end of 2018. We believe that our fully integrated
operational platform will create value for us and our
customers."
In connection with the
acquisitions, the Company refinanced its former $150 million debt
facility and entered into a new financing agreement with a
syndicate of banks for an aggregate total of $220 million including
an undrawn revolving credit facility of $20 million. The
acquisition was funded with a combination of cash and the issuance
of 21.1 million new TEAM shares. As of June 30, 2018, the
Company had 209,578,173 total shares outstanding.
The Company exercised purchase
options on three of its leased vessels acquired through the
Anglo-Atlantic acquisition, the Cavatina, Calypso, and
Corrido. The vessels were delivered in May for a total
purchase price of $66.4 million. Additionally, Team inked one
new time charter in the quarter: the Tromso (12,934 dwt, built
2008) for a one-year time charter with an optional second year and
redelivered one time charter vessel the Marie S (49,999 dwt, built
2016).
During the quarter, the Company
repurchased 85,965 outstanding shares of its stock for an average
price of NOK 7.99. The Company held 3,849,631 treasury shares
at the end of the quarter.
Forward looking
statements
This press release may contain
forward-looking statements. These statements are based upon various
assumptions, many of which are based, in turn, upon further
assumptions, including Team Tankers International's management's
examination of historical operating trends. Although Team Tankers
International believes that these assumptions were reasonable when
made, because assumptions are inherently subject to significant
uncertainties and contingencies, which are difficult or impossible
to predict and are beyond its control, the Company cannot give
assurance that it will achieve or accomplish these expectations,
beliefs or intentions.
Important factors that, in the
Company's view, could cause actual results to differ materially
from those discussed in this report include the strength of world
economies and currencies, general market conditions including
fluctuations in charter hire rates and vessel values, changes in
demand in the chemical tanker market, changes in the Company's
operating expenses including bunker prices, dry-docking and
insurance costs, changes in governmental rules and regulations or
actions taken by regulatory authorities, potential liability from
pending or future litigation, general domestic and international
political conditions, potential disruption of shipping routes due
to accidents or political events, and other important factors
described from time to time in the reports filed by the Company.
Neither Team Tankers International nor any other person assumes
responsibility for the accuracy and completeness of the
forward-looking statements.
The 2nd quarter 2018
financial report is attached.
The Board of Directors
Team Tankers International Ltd.
Hamilton, Bermuda
Questions should be directed to:
Hans Feringa: President and CEO
T: +1 203 341 3600
Kevin Kilcullen: CFO
T: +1 203 341 3600
About Team Tankers International
Ltd.: Team Tankers International Ltd. is a leading chemical tanker
company committed to providing safe, reliable and incident free
transport services to our worldwide customer base. The Company
transports a wide variety of cargoes including organic chemicals,
non-organic chemicals, petroleum products, vegetable oils and lube
oils. Team Tankers International Ltd. is listed on the Oslo Stock
Exchange (OSE: TEAM).
This information is subject to the
disclosure requirements pursuant to section 5-12 of the Norwegian
Securities Trading Act.
Team Tankers 2Q 2018
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Team Tankers International Ltd. via
Globenewswire