Exmar Reports Strong Earnings for VLCCs
Belgium's Exmar, the Nicolas Savery-led shipowner, reported strong earnings for the very large gas carriers (VLCCs), and midsize gas carriers for the the third quarter of 2019.
The current trading fleet of Exmar in the VLGC segment is the 83,300 m³ BW TOKYO. During the quarter the vessel has been extended to a first-class counterpart at a profitable rate to Exmar in line with strong market fundamentals.
The two 88,000 m³ next generation dual fuel newbuildings with a long-term charter to Equinor are progressing according to schedule with expected delivery second and third quarter 2021, respectively.
Exmar as player in the midsize market with a market share close to 20% has increasingly started to benefit from tightening freight markets with every renewal being concluded at higher levels.
The market has moved from low USD 500,000 per month at the beginning of the year to in excess of USD 800,000 per month now.
With the 2020 IMO rules soon to be implemented the performance difference between our modern fleet and the average midsize carrier is increasing and will enable us to obtain a premium for these vessels. Our coverage for 2020 is now 56%.
The operating result (EBIT) in the third quarter of 2019 was USD 5.5 million. The EBIT for the LPG Division in the third quarter of 2019 was USD 4.1 million compared to USD 1.0 million in the third quarter of 2018.