The tanker will be chartered out to a prominent charterer at approximately USD 16,000 per day.

Tankerska Next Generation published a document in which they state that they secured 12-month time charter employment for one of the ECO class product tankers.

The tanker will be chartered out to a prominent charterer at approximately USD 16,000 per day under usual market terms with an additional charterers’ option to extend the contract with an escalation, under similar terms. The deal starts from mid-March 2019.

Note that in 2018, Time Charter Equipment amounted to USD 13,201 per day which represents a decrease of 15% YoY.

As a reminder, Tankerska Next Generation reported a sharp drop in financials in 2018, owing mostly to the fact that the spot rates were not high enough to replace the expired time charters. Out of 6 ships, 3 entered 2018 with previously arranged time charters. Vukovar expired in April (TCE of USD 17,250 a day), Zoilo in July (17,750) and Dalmacija in September (17,750). Excluding these previous arrangements, according to our calculation it seems that TNG had a TCE of about USD 9,500 a day in 2018.

Note that according to our calculations TNG would record an EBITDA breakeven at average TCE of roughly USD 7,200 per day, while they would record a net income breakeven at average TCE of roughly USD 12,600 per day.

To read more about TNG in our blog click here.

Charter Rates According to Morgan Stanley’s Maritime Report