VLCC owner DHT Holdings is bringing forward ballast water treatment system (BWTS) and scrubber installations due to the weak tanker market.
For the first half of 2021 DHT’s fleet of 27 VLCCs earned an average rate of $25,500 per day, per vessel and reflecting the low market this dipped to an average of $19,500 per day, per vessel in the second quarter of the year. The tanker owner reported a Q2 2021 net profit of $800,000, down from $11.6m in Q1 2021, and $135.8m in the same period a year earlier.
“The virus outbreak led to reduced global consumption of refined oil products resulting in a build-up of shorebased inventories of both feedstock and end products. Further, leading oil producers have reduced supply with 3 the view to rebalance the oil markets. As such, demand is partly being satisfied by drawing down on inventories, resulting in reduced demand for transportation,” DHT said in its results announcement.
As a result of low rates DHT took the decision to accelerate drydockings for repairs and retrofits.
“Scheduled off hire for the quarter was 100 days as the company took advantage of the weak freight market to bring forward dry dockings and planned installations of scrubbers and ballast water treatment systems,” DHT said.
Looking into Q3 the low rate scenario is continuing and DHT has 64% of available VLCC days booked at an average of $22,100. The company will continue to bring forward drydockings in the quarter with scheduled offhire expected to range from 80 – 100 days.
Source: Seatrade Maritime