Gram Car Carriers has approved its ninth consecutive quarterly dividend.
It reported a $31.2m profit for the first three months on the back of $54.9m revenues as the car carrier market stays hot, according to the quarterly report.
The performance was a jump from the first quarter of 2023, when it logged a $13.1m profit.
“We deliver another strong quarter through execution on our substantial revenue backlog, value-creating vessel transactions and reduced debt margins,” said chief executive Georg Whist.
The Oslo-listed car carrier lessor will pay a dividend of $0.819 per share for the first quarter, equal to 75% of the profit.
For the fourth quarter, GCC paid a dividend of $0.979 per share.
“We maintain our focus on operational performance and customer service, which are key drivers for profitable growth and value creation for our shareholders,” Whist said.
Car carrier owners and operators have earned high rates in recent quarters as Chinese automotive exports surged, creating competition for tonnage.
The market was further fuelled by owners rerouting vessels away from the Red Sea and around the Cape of Good Hope because of attacks on vessels by Houthi militants in Yemen.
The reroutings have pushed down ship supply and raised rates, although owners have warned that volumes will drop.
GCC said its vessels remain restricted from passing through the Red Sea after the Norwegian Maritime Authority raised the security level in the southern part of the Red Sea to the highest level in December.
The company monitors the situation closely and will review and update this policy when appropriate, based on recommendations from the relevant authorities.
According to Clarksons, a 6,500-ceu pure car/truck carrier would earn $115,000 per day on a six to 12-month time charter, steady through the first four months of the year and higher than the 2023 average of $111,250 per day.
GCC’s average fleet time charter equivalent was $33,720 per day in the first quarter, an increase from $32,300 per day in the fourth quarter of 2023. The higher TCE was mainly a function of the 6,500-ceu Viking Queen (built 2007) beginning its new charter in February.
The company estimates an average cash flow breakeven rate of $17,860 per day per vessel going forward, little changed from $17,720 in the previous quarter.
Total revenue backlog was $794m at the end of first quarter compared with $851m at the end of last year.
