Oslo-listed Team Tankers International is expecting an improvement in earnings through its newly launched technical management venture with V Group.
The US-headquartered chemical carrier owner expects this deal, as well as commercial cooperation with Maersk Tankers, to boost trading performance, cut costs and give it more flexibility for divestment and investment.
Chief executive Hans Feringa said the moves were "a further step towards building commercial and operational scale for our tanker fleet".
The V Group venture, Dania Ship Management AS Denmark, was launched on 1 April.
Team transferred its in-house managed fleet, consisting of ten medium-range tankers and two 25,000-dwt coated vessels, to Dania. The venture will also take over the shipowner's onshore technical organisation and seafaring expertise.
Team already had 21 ships with V Group for technical management.
The company owns 30% of the JV, with V Group holding the remaining 70%. Other companies may join in the future, Team said.
The partnership with Maersk Tankers saw it transfer commercial management of 27 tankers to the Danish operator in March.
Back in black
Team's net profit in the first quarter was $1.4m, against a net loss of $7.9m in the same period of 2019.
Revenue was down at $79.7m from $83.5m, but the owner reduce operating and voyage costs.
First quarter Ebitda was $16.5m, compared with $14m a year ago.
The average time charter equivalent rate for the fleet was $13,812 per day, versus $12,348 per day in the previous quarter.
Virus makes itself felt
The company has experienced a negative impact on the demand for the regional coated ships trading in Asia, but said it is still unclear to what extent the pandemic will hit its performance in the future.
However, Team added it is likely that its vessels operating worldwide will be affected.
"The difficulty in estimating the impact is exacerbated by the crash in oil prices and the strong underlying demand for tankers," the shipowner said.
"If the pandemic lasts for a prolonged period with a corresponding impact on the world economy and tanker shipping, it could impact the company negatively through lower earnings, asset price declines and increased financing costs."
Team has been trimming its chartered fleet, redelivering the 13,100-dwt PVT Neptune (built 2008), the 50,000-dwt Silver Linda (built 2015) and the 9,400-dwt Black Star (built 2011) after their terms expired in February.
And this month it has sent the 50,000-dwt Tintomara (built 2003) back to its owner.
It operates 38 vessels, of which 30 are owned.
