Tanker Investments Ltd (TIL) has finally got its hands on the first two suezmaxes in a fleet of six purchased from George Economou late last year, opening the door for a first dividend from the company later this year.
Oslo-listed TIL has faced a frustrating wait for the ships in a strong market and was finally today able to confirm the arrival of the first ships which will carry the names Baker Spirit and Cascade Spirit.
William Hung, chief executive of TIL, said the final four tankers will be handed over by Cardiff Marine “in the upcoming days”.
“While these vessels delivered to us approximately one month later than anticipated, we are excited to have them join our fleet at this point in the tanker market cycle,” Hung said.
“With strong oil demand, partially lead by low oil prices, record-high global oil production and moderate fleet growth, we expect Tanker Investments’ fleet to generate substantial cash flow during the second half of 2015 and into 2016.”
Progress in the delivery of the suezmaxes came alongside a slightly disappointing second quarter report from TIL.
It secured a $16.7m profit for the three months to the end of June, missing the $19.2m consensus.
However, with the suezmaxes now arriving TIL can begin the harvesting phase before its sale to the highest bidder in the next couple of years.
“We have recently seen asset values increase as a result of the strong spot tanker rates experienced so far this year and with a strong outlook for the tanker market through the winter and into 2016, we expect asset values will remain firm,” Hung said.
“In addition, with projected strong tanker rates, we anticipate that our leverage and liquidity will reach comfortable levels later this year and at that time we intend to distribute all excess capital to shareholders.”
