General Maritime Shipping Corp. reported its first-quarter financial results showing a record slump in net income at $9.1 million against $18.9m.net income in Q1,09, Marinelink reports citing the Company’s statement.
“The decrease in net income was primarily due to a 21% decrease in our fleet TCE compared to the prior year period, as well as increased direct vessel operating expenses relating to the $1.1 million write-offs of certain insurance claims not deemed to be collectible for the three months ended March 31, 2010,” the Company statement said.
Net voyage revenue, which is gross voyage revenues minus voyage expenses unique to a specific voyage (including port, canal and fuel costs), decreased 21% to $65.9 million for the three months ended March 31, 2010 compared to $82.9 million for the three months ended March 31, 2009. This was primarily due to an increase in voyage expenses from $9.4 million for the three months ending March 31, 2009, to $31.7 million for the three months ending March 31, 2010. This increase in voyage expenses was due to higher bunker costs as well as an increase in percentage of spot market operating days for the first quarter 2010, compared to the prior year period.
EBITDA for the three months ended March 31, 2010 was $32.1 million compared to $48.7 million for the three months ended March 31, 2009 (please see below for a reconciliation of EBITDA to net income). Net cash provided by operating activities was $20.0 million for the three months ended March 31, 2010 compared to $25.7 million for the prior year period. As of March 31, 2010, the Company's net debt (calculated as total long term debt less cash) was $952.8 million.
The average daily time charter equivalent, or TCE, rates obtained by the Company's fleet decreased by 21% to $24,321 per day for the three months ended March 31, 2010 compared to $30,724 for the prior year period. The Company's average daily rates for vessels on spot charters decreased by 2% to $25,911 for the three months ended March 31, 2010 compared to $26,445 for the prior year period.
The U.S. Shipping Company General Maritime is a leading provider of international seaborne oil transportation services.
General Maritime Corporation's fleet is comprised of 31 wholly owned tankers, consisting of 2 VLCC, 11 Suezmax, 12 Aframax 2 Panamax and 4 Products tankers, with a total carrying capacity of approximately 4 million deadweight tons, or dwt. The average age of the Company's fleet as of March 31, 2010 by dwt was 9.9 years compared to 8.9 years as of March 31, 2009.
As of March 31, 2010, the Company had 2 VLCC, 5 Suezmax, 3 Aframax, 2 Panamax and 4 Handymax tankers under time charter contracts. These vessels represented 52% of the 31 vessels in the Company's fleet.