Despite the negative effects of COVID-19, it is still operating with a very high solvency ratio of 274% (-3 p.p. compared to year-end 2019)

Croatia Osiguranje published announcement on ZSE that the company made a regular solvency calculation as at 31 March 2020, which showed that despite the negative effects of COVID-19, it is still operating with a very high solvency ratio of 274%. This represents a slight decrease of 3 p.p. compared to year-end 2019.

The company states that this confirmed earlier assessments that the solvency ratio should remain at levels significantly higher than those prescribed in the regulations, as well as that the Company’s solvency should in no way be brought into question because of the effects of the above disease.

Also, based on the currently available information, further development of the situation with COVID-19 and its impact on the Company’s operations did not have any significant negative effects on the Company’s solvency.

In regard to liquidity, the Company adds that they still has a satisfactory amount of liquid resources that is sufficient for discharging all obligations that have become due; it also has at its disposal instruments available for obtaining additional liquidity if necessary.

The tanker will be chartered out to a leading US oil major at approximately USD 17,000 per day (approximately USD 18,000 per day for the option) under regular market terms.

Tankerska Next Generation published an announcement stating that they have secured a 3-year time charter employment for one of its ECO tankers with charterers’ option to extend for an additional year. The contracted employment is with delivery scheduled in July or August 2020.

The tanker will be chartered out to a leading US oil major at approximately USD 17,000 per day (approximately USD 18,000 per day for the option) under regular market terms. The company notes that the negotiated conditions are thoroughly in line with the company’s strategic concept that focuses on the efforts to secure a strong asset base and stable cash flow.

As a reminder, earlier this year (late February) TNG secured two-year employment for one of its conventional ice-class product tankers at approximately USD 17,100 and USD 16,850 per day under regular market terms. To read more about it click here.

Tankers have recently been in the spotlight, seeing a rise in demand as they are intended to be used for storage of oil. This started off back in March when oil prices decreased enough for big energy traders to be able to take advantage of a market structure called contango, a situation where the futures price of a commodity is higher than the spot price. By buying oil cheaply now and selling at a higher price in the future market, traders can make money as long as the difference is greater than the cost of storage. To read our blog on this topic, click here.

TNG has also recently published their Q1 2020 results, which can be found here.