Navig8 Chemical Tankers has returned to profit in the second quarter as it lowered financial expenses.
The Oslo over-the-counter listed company said net earnings were $3.9m to 30 June, turning around a loss of $1.6m in the same period of 2019.
The company was boosted by interest costs dropping $4m.
Revenue from the 32 tankers grew to $45.7m, from $44.8m. Of this, pool revenue contributed $39.6m, versus $44.8m the year before.
But time charter income was $6.1m, against zero in 2019.
Quartet refinanced in leaseback deal
In July, after the reporting period, the company refinanced four vessels in a deal with a Chinese sale and leaseback company.
Navig8 Chemical said it has banked net proceeds of $88.2m from the transaction with SPDB Financial Leasing (SPDBFL) for the unnamed 37,000-dwt Interline-coated tankers, which were built to IMO type 2 chemical handling standards.
Some of the money was earmarked to partially repay the company's existing multi-bank loan facility on the vessels, dating from February 2015, as well as a sale and leaseback facility with Norway's Ocean Yield entered into in the same year.
Navig Chemical's first-half revenue was $90.7m, up from $89m a year ago, with profit at $2m, compared to a loss of $3.7m.
The company logged Ebitda of $49.5m, down from $50.4m in the first six months of 2019.
Navig8 Chemical was set up in 2013 as a joint venture between tanker owner Navig8 Group and giant US fund manager Oaktree Capital Management.
Most of the ships are contracted to operate in various chemical tanker pools managed by Navig8 Group and Odfjell Tankers.
Navig8 Chemical had assets worth $1.1bn as of 30 June, with liabilities totalling $755.9m.
