2nd Quarter 2016
results
Team Tankers
International Ltd. (OSE: TEAM) reported EBITDA for the 2nd quarter of
$9.7 million, compared with $14.2 million in the 1st quarter of
2016 (Q2'15: $16.9 million). Net loss in the 2nd quarter of
2016 was $4.4 million, compared with net profit of $4.5 million in
the 1stquarter (net
profit Q2'15: $4.6 million). The average time charter equivalent
rate for the fleet was $13,242 per day in the 2nd
quarter, compared with $14,000 in the previous quarter.
In the 2nd quarter, the
Company took delivery of the North Contender, a 19,925 dwt
stainless steel ship, previously on bareboat charter to the
Company. Subsequent to the quarter, the Company entered into
an agreement to sell the vessel.
Additionally, during the
2nd quarter, the
Company completed the sale of the Sichem Contester, a 19,822 dwt
stainless steel ship and agreed to sell the Sichem Edinburgh, a
13,153 dwt coated ship, with expected delivery in the 3rd
quarter. A net loss $0.9 million was recognized from ship
transactions in the quarter.
With the sale of Sichem Contester
and the impending sale of the North Contender, the Company has
fully executed its previously announced exit from the deep sea
stainless steel vessel class. Team CEO Hans Feringa commented,
"With an orderbook approaching 30% of the existing fleet, large
stainless steel vessels may face the greatest supply-driven
pressure in the chemical tanker fleet. Team was a subscale
participant in this market and we are pleased to have executed on
our announced exit."
The transition of the finance,
accounting and corporate functions from Oslo to Westport, CT was
also completed in the 2nd quarter of
2016. The Company's office in Oslo will be closed as of the
end of August. Non-recurring costs of approximately $0.7 million
related to the relocation and transition were included in SG&A
expenses for the quarter.
The weaker market conditions that
prevailed in the latter half of the 2nd quarter are
expected to continue in the 3rd quarter of
2016.
Share Repurchase
Program
The Board of
Directors of Team Tankers International Ltd. has authorized the
Company to commence a $10 million share repurchase program.
The Board of Directors of Team
Tankers International has in a board meeting held on 16 August
2016, authorized the Company to commence a $10 million share
repurchase program. The objective of the share repurchase program
is to reduce the capital of Team Tankers. The share repurchase
program will be carried out in accordance with the Bye-Laws of the
Company and applicable laws and regulations.
Key terms of the share repurchase
program include:
-
The maximum consideration that the
Company may pay for the shares purchased under the program is USD
10,000,000, limited up to 10,000,000 shares (corresponding to 5.3%
of the current issued share capital of Team Tankers), may be
purchased under the program.
-
The shares may be purchased within a
price range of NOK 10.00 to NOK 20.00.
-
The share repurchase program period runs from 22
August 2016 and ends on 18 August 2017, both days
inclusive.
-
No shares may be bought at a price
higher than the greater of the share price of the latest
independent trade or the highest current independent offer price at
Oslo Børs at the time of the trade.
-
The maximum number of shares in Team
Tankers which may be purchased on each trading day corresponds to
50% of the average daily trading volume of Team Tankers shares in
July 2016, amounting to 120,017 shares. Due to the low liquidity of
Team Tankers' shares, the Company may deviate from the normal 25%
limit.
-
The reporting obligations under
Norwegian law and Oslo Børs regulations must be fulfilled by Team
Tankers within the applicable time limits.
Team Tankers has retained
Clarksons Platou Securities AS as sole financial advisor and
manager for the share repurchase program.
Forward looking
statements
This press release may contain
forward-looking statements. These statements are based upon various
assumptions, many of which are based, in turn, upon further
assumptions, including Team Tankers International's management's
examination of historical operating trends. Although Team Tankers
International believes that these assumptions were reasonable when
made, because assumptions are inherently subject to significant
uncertainties and contingencies, which are difficult or impossible
to predict and are beyond its control, the Company cannot give
assurance that it will achieve or accomplish these expectations,
beliefs or intentions.
Important factors that, in the
Company's view, could cause actual results to differ materially
from those discussed in this report include the strength of world
economies and currencies, general market conditions including
fluctuations in charter hire rates and vessel values, changes in
demand in the chemical tanker market, changes in the Company's
operating expenses including bunker prices, dry-docking and
insurance costs, changes in governmental rules and regulations or
actions taken by regulatory authorities, potential liability from
pending or future litigation, general domestic and international
political conditions, potential disruption of shipping routes due
to accidents or political events, and other important factors
described from time to time in the reports filed by the Company.
Neither Team Tankers International nor any other person assumes
responsibility for the accuracy and completeness of the
forward-looking statements.
The 2nd quarter 2016
financial report is attached.
The Board of Directors
Team Tankers International Ltd.
Hamilton, Bermuda
Questions should be directed to:
Hans Feringa: President and CEO
T: +1 203 341 3600
Kevin Kilcullen: CFO
T: +1 203 341 3600
About Team Tankers International Ltd.:
Team Tankers International Ltd. is a leading chemical tanker
company committed to providing safe, reliable and incident free
transport services to our worldwide customer base. The Company
transports a wide variety of cargoes including organic chemicals,
non-organic chemicals, petroleum products, vegetable oils and lube
oils. Team Tankers International Ltd. is listed on the Oslo Stock
Exchange (OSE: TEAM).
This information is subject
to the disclosure requirements pursuant to section 5-12 of the
Norwegian Securities Trading Act.