The tanker will be chartered out to a prominent charterer at approximately USD 17,000 per day under regular market terms.
Tankerska Next Generation published a document stating that they have secured 6 to 12-month time charter employment in charterers’ option for one of the ECO class product tankers.
The tanker will be chartered out to a prominent charterer at approximately USD 17,000 per day under regular market terms. The contracted employment is with immediate effect.
Earlier this year, TNG secured two 12-month time charter employment for product tankers which will be charted at approximately USD 16,000 per day and USD 15,500 per day. Besides that, last year the company contracted USD 14,500 a day for the ship Vinjerac, expiring in Q2 2019.
Our view on the new charter
We are happy to see another vessel contracted at a favorable rate, as it might signal market improvement in 2019. A quick calculation based on 2018 results (so assuming daily opex of USD 6,755 per ship, G&A of USD 903k, D&A slightly below USD 8m and interest expense slightly below USD 4m) makes us conclude the following:
- TNG records EBITDA breakeven at average TCE of roughly USD 7,200
- TNG records net income breakeven at average TCE of roughly USD 12,600 per day
- An average TCE of 14,500 a day could earn EBITDA of USD 16m and net profit of USD 4m (HRK 3.1 EPS).
