Gener8 Maritime, a leading U.S.-based provider of international seaborne crude oil transportation services, announced its financial results for the three months ended March 31, 2016.
Recorded adjusted net income of $64.8 million, or $0.78 basic and diluted adjusted earnings per share, for the three months ended March 31, 2016, a 107% increase in adjusted net income compared to the same period in the prior year.
Increased net voyage revenue by $46.2 million, or 61.2%, to $121.7 million for the three months ended March 31, 2016, compared to $75.5 million from the same period in the prior year.
Increased vessel operating days by 31.1% to 2,822 in the three months ended March 31, 2016 compared to 2,153 in the same period in the prior year.
Accepted delivery of five “ECO” newbuilding VLCCs, the Gener8 Apollo, the Gener8 Supreme, the Gener8 Ares, the Gener8 Hera, and the Gener8 Success during the first quarter of 2016 and an additional “ECO” newbuilding VLCC, the Gener8 Nautilus, in April 2016.
Entered into interest rate swap transactions in May 2016 with an aggregate initial notional amount of $832.3 million and a maximum notional amount of $1.2 billion for all existing credit facilities with floating interest rate exposure in May 2016.
“Following a transformative year for our Company in 2015, we are pleased to report that 2016 has gotten off to a strong start as we continue to execute on our strategic plan. In the first quarter of 2016, we more than doubled our adjusted net income from the first quarter of 2015 and dramatically increased our net voyage revenue,” said Peter Georgiopoulos, Chairman and Chief Executive Officer of Gener8 Maritime.
“Our newbuilding “ECO” VLCCs continue to be delivered into a strong tanker market, with five vessels delivered in the first quarter of 2016 and an additional vessel delivered in April 2016. As of the date of this release, we have 33 vessels on the water and anticipate taking delivery of an additional 10 VLCCs this year and the final two VLCCs from our newbuilding program in early 2017. Our earnings potential increases with every incremental delivery, and our fleet becomes younger (based on average age) and more efficient. This ultimately helps to position us for the future. On a fully delivered basis, the DWT-weighted average age of our fleet will be 5.0 years, and our VLCCs will have an average age of just 3.1 years, giving us the youngest VLCC fleet among our public peers.”
Leo Vrondissis, Chief Financial Officer, added, “We have also recently entered into a series of interest rate swap transactions with an aggregate initial notional amount of $832.3 million and a maximum notional amount of $1.2 billion. The interest rate swap transactions are meant to be cash flow hedges, which effectively fix the interest rate on a significant portion of our existing credit facilities where we have interest rate exposure.”