Oslo: Tanker Investments, which was founded just over a year ago, says that the company’s asset acquisition phase is over despite a tanker market supported by the strong fundamentals of ongoing low oil prices, low fleet growth, and increasing oil demand.
Speaking as the company announced its strongest set of quarterly results on record, William Hung, the company’s ceo said: “With asset values approaching long-term averages, Tanker Investments has concluded the asset acquisition phase and is now well-positioned to generated significant cash flow from its one hundred percent spot-traded fleet. Furthermore, once the company’s leverage and liquidity have reached comfortable levels, we intend to distribute all excess capital to shareholders.”
Tanker Investments is waiting on six secondhand suezmax tankers set to deliver in the second quarter of 2015, which it bought en bloc for a total of $315m in December last year. The deliveries will give the company a fleet size of 20 vessels, made up of 10 suezmaxes, 8 aframaxes, and 2 VLCCs. Tanker Investments was formed specifically to acquire, operate and sell modern secondhand tankers to benefit from cyclical fluctuations in the tanker market.
Hung expects good rates to continue, concluding: “Looking ahead, we expect the positive tanker market fundamentals to continue into 2016.”
The company reported a net income of $19.1m for the quarter.