Thai VLCC owner Prima Marine has seen a 36% year-on-year increase in second-quarter net profit according to a recent regulatory filing.
Net income for the three months was THB 678.6m ($19.8m) against the THB 497.4m seen 12 months earlier, the figures show.
The Bangkok-listed shipowner attributed the improvement to stronger tanker rates as well as demand for its VLCCs used for fuel oil storage.
The stronger second quarter helped the company report a 14.1% year-on-year increase in first-half net profit to THB 1.2bn.
Prima Marine’s floating storage unit business saw second-quarter gross profit jump 17.5% year on year to THB 397.8m.
“The FSU business returned to significant growth [in the quarter] from the higher demand to store and blend fuel oil,” Prima Marine said.
“The increase [was] driven by the situation in the Red Sea region, which has led vessels to undertake longer voyages to the west.”
In addition, the increased demand for bio-blended low-sulphur fuel oil to reduce carbon emissions, in compliance with International Maritime Organisation regulations, also contributed to this growth.
Prima Marine’s crude tanker segment saw a modest improvement in gross profit during the second quarter, increasing by about 1% to THB 202.5m, while revenue was up nearly 5% to THB 511.8m.
“These improvements were driven by higher freight rates for aframax vessels, due to an increase in global market demand and the full utilisation of a VLCC that resumed operations after being off-hire for dry-docking in the first quarter,” Prima Marine said.
Meanwhile, Prima Marine’s fleet of 39 chemical and product tankers reported a near 7% increase in revenue to THB 904.7m, but gross profit was largely unchanged at THB 205.7m.
Prima Marine’s offshore support vessel proved the surprise package of the quarter with gross profit more than doubling to THB 119.1m compared to a year ago.
“This better performance was primarily due to fleet expansion aligned with an increase in petroleum exploration and production activities in the Gulf of Thailand,” the shipowner said.
“The company commenced operation of a second accommodation workboat in January 2024 and introduced hybrid crew boats designed to reduce fossil fuel consumption and greenhouse gas emissions, in accordance with the company’s sustainable development policy.
“These two hybrid crew boats, launched in March and April 2024, position the company as the first commercial hybrid crew boat operator in South East Asia,” Prima Marine added.
In the first half of 2024, the OSV business achieved a revenue increase of 80.6% and a gross profit increase of 125.4% compared to the same period last year.
“As a result, this business now contributes 10.1% of the company’s total revenue, representing a 3% increase,” Prima Marine said.
“This growth aligns with the company’s strategy to balance the revenue and profit proportions of each business to reduce excessive reliance on any single sector.”
