In 9m 2019, TNG recorded a decrease in vessel revenues of 7.9% YoY, an increase in EBITDA of 6.7% and an increase in net income of 5%.

As TNG published their Q3 2019 report, we are bringing you key takes from it. According to the report, Daily TCE net rates per operating vessel in first three quarters of 2019 were USD 14,490 per day on average, representing an increase of 3.1% YoY. Note that currently, 4 out of 6 vessels have secured income: Velebit (USD 14,500 per day), Dalmacija (USD 16,000 per day), Vukovar (USD 17,000 per day) and Pag (USD 17,100 per day); while 2 vessels are employed on spot market. In 9m 2019, fleet utilization remained at 100%.

TCE of TNG’s Vessels (USD per day)

*Employed at spot market

The average daily vessel operating expenses (OPEX) in the 9m of 2019 amounted to USD 6,529 per vessel, which is a decrease of 1.2% YoY.  

Vessel revenues in the 9m 2019 amounted to HRK 201.2m, representing a decrease of 7.9% YoY.  Meanwhile, operating expenses observed a decrease of 11.6% YoT, amounting to HRK 161.5m. The mentioned decrease came as a result of the efforts of management to optimize the operations.

Commissions and voyage associated costs amounted to HRK 44.9m, compared to HRK 71.0m in 9m 2018. This decrease is a result the change of employment strategy of Vukovar, Velebit, Pag and Dalmacija which by operating on time charter contract have lower voyage associated costs e.g. port costs, bunker, which is accountable to the charterer. Total operating costs of the fleet amounted to HRK 70.5m in the 9m 2019 and were at the same level as in the same period in 2018.

Going further down the P&L, EBITDA amounted to HRK 79.6m, which is an increase of 6.7%, while operating profit amounted to HRK 40.4m (+11% YoY). Such a result could be attributed to the stable income generated from the time charters as well as the optimization of operations.

In 9m 2019, TNG recorded a net profit of HRK 17.6m (+5% YoY), which can be attributed to the above-mentioned positive contributions from 4 time charter fixtures concluded this year.

TNG Performance (9m 2018 vs 9m 2019) (HRK m)

Turning our attention to the company’s financial position, TNG ended Q3 with a net debt of HRK 530.8m, which led to a gearing ratio of 44% (-3 p.p. YoY). The decreasing debt is in accordance with the loan repayment plans of TNG and regular decrease in indebtedness, while a further decrease in the company’s debt is expected in the future.