Chembulk Tankers has posted another loss in the third quarter after product carrier competition hit rates.
The Oslo-listed chemical tanker owner, backed by private equity giant KKR, said earnings eased in the period, driven by a seasonally slower period and increased numbers of clean tankers moving into the chemical trades.
Connecticut-based Chembulk added that Covid-19 impacts continue to add levels of uncertainty to the global economic outlook and vessel demand, in tandem with the potential for even more competition from product tankers.
"The chemical tanker supply backdrop remains favourable, with the orderbook for chemical tankers near all-time low levels and annual fleet growth is forecasted to moderate to under 2% in 2021," the company added.
Fleet shrank
Chembulk controls 10 of its own tankers of 32,000 dwt and below, plus one chartered-in ship.
The company continues to commercially deploy its vessels in pools and evaluate strategic opportunities, Chembulk said.
Utilisation rates hit 99% in the period.
The net loss was $23.4m in the third quarter, against a loss of $29.6m in the same period of 2019.
Revenue dropped to $15.8m, from $53.2m the year before, when it had 18 owned ships and seven chartered in.
Vessel impairments totalled $20.3m in the third quarter of this year.
Cash stood at nearly $30m at quarter-end, with total liabilities of $55m.
The company in March agreed to enter its entire chemical tanker fleet into commercial pools managed by Womar Logistics.
