Oslo-listed Gram Car Carriers (GCC) is expecting higher earnings in the coming months as vessels begin lucrative new charters.

The Norwegian owner logged net profit of $6.5m in the three months to 30 September, versus a loss of $142,000 in the same period of 2021.

Revenue grew to $31.5m, compared to $20m a year ago.

Average time charter equivalent (TCE) earnings for panamaxes were $18,520 per day, up $1,839 from the second three months.

The figure was $24,200 per day for midsize ships, a rise of $2,500, and $13,170 for the distribution fleet, up $1,410.

The average fleet TCE was $19,960 in the third quarter, an increase from $17,770 in the second period.

The total revenue backlog stands at $563m, up 109% from the end of the second quarter.

GCC said it is “positioned to capture a historically strong market”, with 14% of vessel days open in 2023 and 38% in 2024.

The outlook is favourable, with high charter rates and long contract durations, the owner said.

“Daily earnings from the fleet are set to increase over the next quarters as vessels start on new contracts at higher day rates,” GCC said.

The company estimates a cash flow break-even rate of $15,840 per day.

Delivering term deals at record rates

GCC is the world’s third-largest tonnage provider within the pure car/truck carrier (PCTC) sector.

“We continue to deliver on our strategic priorities by signing new long-term contracts at historically high day rates and by providing safe, efficient operations and high-quality logistics services to our customers,” chief executive Georg Whist said.

“This has led to a significant increase in our backlog during the second half of 2022, which supports future earnings growth and visibility on continued increased dividend payments in line with our stated policy of distributing at least 50% of net profit on a quarterly basis.”

The payout to shareholders is $0.11 per share for the quarter.

“We are on track for the planned up-listing to Euronext Oslo Bors later this year, which is expected to further broaden our investor base,” Whist said.