Thai VLCC owner Prima Marine has declared a modest decline in first-quarter net profit on the back of a mixed performance by its various tanker segments.
Net income for the January to March 2024 period was down 4% year on year to THB 588.6m ($16.3m) at the Bangkok-listed shipowner, recently released figures show.
Revenue for the quarter was up just 1.5% to THB 2.1bn while operating costs showed a year-on-year increase of 5.1% to THB 1.36bn.
Prima Marine’s crude and chemical tanker segments were able to generate better revenue and profit, while its floating storage unit arm was hit by weaker year-on-year demand.
The FSU business reported a 20.6% decline in gross profit to THB 300m, while revenue declined 19.6% year on year to THB 569.7m.
“This decrease can be attributed to the market slowdown since mid-2023, as well as one of its vessels being off service in preparation for its sale,” the shipowner said.
The company sold the 298,000-dwt Crystal Star (built 2000) reportedly to Singapore buyers in October last year for an unreported price, but the company confirmed a net profit of THB 312.2m from the transaction.
However, revenue at the FSU unit was up nearly 12% versus the fourth quarter of 2023 as a result of higher demand for storing crude oil brought on by the Red Sea crisis.
“This was because major oil traders were particularly concerned about the potential disruption to crude oil transportation due to tensions in the Middle East,” the shipowner said.
In the first quarter, Prima Marine’s crude tanker segment saw gross profit edge up 5.7% to THB 190.3m, while revenue declined 2.5% to THB 439.6m.
The better result came despite one of its three VLCCs being off-hire for scheduled maintenance, reducing the average utilisation rate of the fleet to 85.9%.
However, this was offset by a 100% utilisation rate of its sole aframax tanker, which was only 72% in the year-ago quarter.
Prima Marine’s petroleum and chemical tanker segment saw its gross profit slide 7.7% to THB 194.6m, while revenue increased 10% year on year to THB 896.6m.
The addition of a tanker, which started operation late in 2023, as well as an increase in the transportation of jet fuel as more tourists returned to Thailand helped drive up revenue.
However, during the quarter two petrochemical tankers were dry-docked for maintenance, leading to the decline in year-on-year gross profit.
Prima Marine’s offshore support vessel segment saw gross profit jump to THB 82.5m in the fourth quarter of 2024 against the THB 31.3m seen 12 months earlier.
This increase can be attributed to the addition of an extra accommodation work boat and one hybrid crew boat, which started service in mid-January and early March 2024, respectively, the company said.
