ADS Crude Carriers' backers have provided more financing following yard stays for its three VLCCs to fit scrubbers.

The Norwegian company said shareholders SFL Corp and ADS have agreed terms on a $7.5m unsecured credit facility as a working capital buffer.

The owner's third quarter loss increased to $2.91m from $2.06m in 2018, with revenue up at $6.98m from $2.96m.

The time charter earnings (TCE) average was $16,801 per day, down 4% from the second quarter.

Chairman Bjorn Tore Larsen said: “As expected, the third quarter earnings were impacted by the scheduled yard stays for our fleet of three vessels, reducing the number of available vessel operating days by 53% to 127 days compared to the previous quarter."

"TCE achieved in the quarter was $16,801, which was less than the estimated backlog figure for the quarter we announced on 22 August as a result of higher than expected voyage costs on one vessel towards the end of the quarter."

Yard costs rise

It spent $10.5m on vessel surveys, up from the estimated $7.5m previously guided, as well as $12m on scrubber work. The yard stays will account for 25% of vessel days in the fourth quarter.

“VLCC rates observed in the spot market post-quarter end have been significantly higher than levels seen during the first nine months of the year," Larsen added.

He said ADS' full exposure to the spot market leaves it well positioned to take advantage.

The company has secured estimated backlog for about 60% of days in the final quarter at an average TCE of $27,000 per day.