Team Tankers reports Q2 net income of $4.4 million
Team Tankers International Ltd. (OSE: TEAM) reported EBITDA for the 2nd quarter of $6.7 million, compared with $2.5 million in the 1st quarter of 2018 (Q2'17: $3.1 million). Net income in the 2nd quarter of 2018 was $4.4 million compared with a net loss of $7.3 million in the 1st quarter of 2018 (Q2'17 net loss: $7.1 million). The average time charter equivalent rate for the fleet was $11,316 per day this quarter, compared with $10,610 per day in the previous quarter, the Company said in a press release.
On April 4, 2018, the Company completed the acquisitions of Laurin Shipping AB and Anglo-Atlantic Steamship Company Ltd. significantly increasing the size of the fleet and the scope of Team's commercial and technical operations. The acquisition of the Anglo-Atlantic fleet secured a critical mass of sophisticated MRs and a broad portfolio of contracts of affreightment which, combined with Team Tanker's deep-sea chemical transportation expertise, creates a leading player in the long-haul transportation of chemical and clean petroleum product cargoes.
Team's CEO, Hans Feringa, commented "We have successfully integrated the Team and Laurin operations and have established commercial and operational hubs in Copenhagen, Houston and Singapore. We expect annualized cost savings in excess of $7 million to be realized through the combination with roughly half coming from overhead eliminations and half from operational and technical cost initiatives. We have also moved the first Team ship on to our new in-house technical ship management platform and we plan to move three more ships by the end of 2018. We believe that our fully integrated operational platform will create value for us and our customers."
In connection with the acquisitions, the Company refinanced its former $150 million debt facility and entered into a new financing agreement with a syndicate of banks for an aggregate total of $220 million including an undrawn revolving credit facility of $20 million. The acquisition was funded with a combination of cash and the issuance of 21.1 million new TEAM shares. As of June 30, 2018, the Company had 209,578,173 total shares outstanding.
The Company exercised purchase options on three of its leased vessels acquired through the Anglo-Atlantic acquisition, the Cavatina, Calypso, and Corrido. The vessels were delivered in May for a total purchase price of $66.4 million. Additionally, Team inked one new time charter in the quarter: the Tromso (12,934 dwt, built 2008) for a one-year time charter with an optional second year and redelivered one time charter vessel the Marie S (49,999 dwt, built 2016).
During the quarter, the Company repurchased 85,965 outstanding shares of its stock for an average price of NOK 7.99. The Company held 3,849,631 treasury shares at the end of the quarter.