Navig8 Chemical Tankers Stays in Black

  • As Osinbajo tells of How 55 Nigerians looted N1.4trn in 7 years

Navig8 Chemical Tankers, a joint venture between the Navig8 Group and Oaktree Capital Management, reported its net income for the first quarter of 2016 at USD 10.4 million against a net income of USD 9.1 million for the three months ended December 31, 2015.

The shipping company, which focuses on the transportation of chemicals, accepted its first two newbuilding deliveries in February of 2015 and therefore recognized little revenue during the three months ended March 31, 2015.

The company generated a revenue of USD 36.5 million for the period, compared to a revenue of USD 35.3 million reached in the previous quarter.

The total number of vessel operating days for the three months ended March 31, 2016 increased to 1,682.

“We continued to take timely deliveries of our newbuilding vessels in the first quarter and thus continued to expand our operating days,” said Nicolas Busch, Chief Executive Officer of Navig8 Chemical Tankers Inc.

“The daily rates we achieved were roughly in line with the prior quarter and remained strong despite unforeseen market dynamics. Notably, a decrease in palm oil production in South East Asia caused by the El Nino weather pattern contributed to a vessel oversupply in the region. This in turn mitigated the effect of strong demand for methanol cargoes to China, which we anticipate will remain a significant demand driver for the foreseeable future. Nonetheless, we generated incremental revenues and earnings per share on the back of organic fleet growth.”

Navig8 Chemical Tankers had 20 vessels operating during the three months ended March 31, 2016, all of which were deployed in pools managed by the Navig8 Group.

As of March 31, 2016, the company has taken delivery of 21 ships from the previously ordered 37 vessels. Navig8 said that the remaining vessels are scheduled to be fully delivered by September 2017.

“We look forward to continuing to take deliveries of our newbuilding vessels, with a further seven deliveries expected to occur by the end of 2016,” Busch said.

Additionally, the company entered into USD 140 million sale and leaseback agreements in April 2016 for four IMO2 49,000 DWT Interline coated medium range tankers being built at STX Offshore & Shipbuilding Co., Ltd.

Under the deals, signed with Bank of Communications Financial Leasing Co., Ltd (BCFL), the bank will provide funding for pre-delivery as well as the delivery instalments for these vessels.

In the meantime, only 55 Nigerians have looted more than N1.4 trillion of public money in seven years—and the money could have changed Nigeria immensely, Vice President Yemi Osinbajo said Tuesday.

In a shocking calculation of the opportunity cost of corruption, Osinbajo said only a third of the looted money—some half trillion naira—could have favoured large swathes of Nigeria, build roads, put children in school and families in homes instead of lining the pockets of looters.

“Using World Bank’s rates and costs, one-third of this stolen sum could have provided 640km of roads,” said the vice president.

That’s roughly the distance between Abuja and Sokoto. The money could also have built “36 ultra modern hospitals (one per state), built and furnished 185 schools, educated 4,000 children from primary level all the way to their tertiary education (at N25 million per child), and also built 20,000 units of two-bedroom houses,” the vice president said.

Osinbajo was speaking at a stakeholders dialogue on corruption, organised by Transparency International and its local contact, the Civil Society Legislative and Advocacy Centre (CISLAC).

World Maritime News with additional report from Daily Trust.