Nordic Pulls Five Ships Out Of Handytankers Pool

- May 25, 2016-

Copenhagen-listed shipowner Nordic Shipholding has decided to withdraw five of its vessels from the Handytankers Pool and redeploy them in smaller and more focused pools in an effort to improve its earnings.

The move follows a decrease in the forecasted daily rate in the Handytankers Pool due to a softer tanker market as the average daily TCE rate earned by the vessels dropped to USD 8.5 million during the quarter, compared to USD 9.2 million seen in the same period a year earlier.

The average daily TCE rate in the Handytankers Pool was also lower than the rates earned during the same period in 2015, while the company’s LR1 tanker Nordic Anne tracked the forecasted daily rate, Nordic said.

The first vessel is expected to return to the company on/around May 25, while the remaining four vessels are expected to join their owner within the 90 days’ redelivery window.

Nordic has already secured further pools for the ships, as three of these are scheduled to enter the UPT Handy Pool and two vessels will be employed in the Hafnia Handy Pool.

During the first quarter of the year the company recorded a profit after tax of USD 1.5 million, compared to USD 2.7 million in the same quarter of 2015.

“Despite the current softer sentiments on the tankers’ market, the outlook for 2016 remains unchanged. For 2016, the group expects the TCE revenue from the 5 product tankers in the pool and the time-charter income from Nordic Anne to be in the region of USD 33 million – USD 36 million,” the company said.

The EBITDA is expected to be in the range of USD 17 million to USD 20 million.

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