General Maritime's Q4 gain plunges 79%
General Maritime Corp, the third-largest US oil-tanker owner, said fourth-quarter net income fell 79 per cent as a smaller fleet and lower shipping rates cut into revenue.
Net income dropped to US$22.4 million, or 71 US cents a share, from US$104.6 million, or US$2.78 a share, in the year-ago period, New York-based General Maritime said in a statement. The company announced a one-time dividend of US$15 a share to shareholders of record as of March 9.
The Baltic Dirty Tanker Index, a measure of rates for vessels on several routes around the world, averaged 1,198 points in the quarter, 42 per cent lower than the average ranking in the same period a year ago. Crude oil demand, the driver of tanker lease rates, has slowed from 2004 when rates reached records.
World oil-demand growth slowed to one per cent in 2006, according to the latest report from the International Energy Agency, an adviser to 26 oil-consuming nations. Oil-tanker rates set records in 2004 when oil-demand growth rose by 3.8 per cent.
General Maritime was expected to earn 79 US cents, the average estimate of 14 analysts compiled by Bloomberg. The company's revenue more than halved to US$52.6 million in the quarter.
Overseas Shipholding Group Inc and OMI Corp are the biggest US-based tanker owners.
OMI said earlier this week that its fourth-quarter profit fell 45 per cent to US$61.5 million, due in part to a 19 per cent drop in spot-market lease rates for its Suezmax tankers.
Teekay Shipping Corp, the world's largest oil-tanker owner, said on Feb 21 that its fourth-quarter net income dropped 58 per cent to US$60.3 million, or 81 US cents a share, from US$144.6 million, or US$1.85 a share.
Overseas Shipholding is expected to report its earnings on today.
General Maritime's fleet earned, on average, US$34,410 a day, down 5.8 per cent from US$36,538 a day in the year-earlier period. The company operated about half of its ships in the spot market, where rates to ship oil vary by voyage. The average spot- market rate for its Suezmax tankers was US$36,650 a day for the quarter, down 23 per cent from $47,608 a day a year earlier.
Average spot rates for its Aframax tankers fell 4.6 per cent to US$33,264 a day from US$34,860 a day in the fourth quarter 2005. The company has a break-even point of US$12,000 a day for its whole fleet.
General Maritime owns 19 tankers, including nine Suezmax tankers, which can transport about one million barrels of oil, and 10 Aframax tankers, which can ship about 600,000 barrels. In a move to modernise its fleet, General Maritime sold more than half of its ships within the last year. The company owned 26 tankers in the year-ago period.
As of Dec 31, on average, its fleet is now 9.5 years old, compared with 10.9 years in the quarter a year ago.
General Maritime announced a regular dividend payment of 62 US cents a share, payable to shareholders of record as of March 9.
The company pays most of its cash flow in a quarterly dividend. Only interest expenses and a reserve fund set aside for vessel acquisitions and fleet maintenance are withheld.
Net income dropped to US$22.4 million, or 71 US cents a share, from US$104.6 million, or US$2.78 a share, in the year-ago period, New York-based General Maritime said in a statement. The company announced a one-time dividend of US$15 a share to shareholders of record as of March 9.
The Baltic Dirty Tanker Index, a measure of rates for vessels on several routes around the world, averaged 1,198 points in the quarter, 42 per cent lower than the average ranking in the same period a year ago. Crude oil demand, the driver of tanker lease rates, has slowed from 2004 when rates reached records.
World oil-demand growth slowed to one per cent in 2006, according to the latest report from the International Energy Agency, an adviser to 26 oil-consuming nations. Oil-tanker rates set records in 2004 when oil-demand growth rose by 3.8 per cent.
General Maritime was expected to earn 79 US cents, the average estimate of 14 analysts compiled by Bloomberg. The company's revenue more than halved to US$52.6 million in the quarter.
Overseas Shipholding Group Inc and OMI Corp are the biggest US-based tanker owners.
OMI said earlier this week that its fourth-quarter profit fell 45 per cent to US$61.5 million, due in part to a 19 per cent drop in spot-market lease rates for its Suezmax tankers.
Teekay Shipping Corp, the world's largest oil-tanker owner, said on Feb 21 that its fourth-quarter net income dropped 58 per cent to US$60.3 million, or 81 US cents a share, from US$144.6 million, or US$1.85 a share.
Overseas Shipholding is expected to report its earnings on today.
General Maritime's fleet earned, on average, US$34,410 a day, down 5.8 per cent from US$36,538 a day in the year-earlier period. The company operated about half of its ships in the spot market, where rates to ship oil vary by voyage. The average spot- market rate for its Suezmax tankers was US$36,650 a day for the quarter, down 23 per cent from $47,608 a day a year earlier.
Average spot rates for its Aframax tankers fell 4.6 per cent to US$33,264 a day from US$34,860 a day in the fourth quarter 2005. The company has a break-even point of US$12,000 a day for its whole fleet.
General Maritime owns 19 tankers, including nine Suezmax tankers, which can transport about one million barrels of oil, and 10 Aframax tankers, which can ship about 600,000 barrels. In a move to modernise its fleet, General Maritime sold more than half of its ships within the last year. The company owned 26 tankers in the year-ago period.
As of Dec 31, on average, its fleet is now 9.5 years old, compared with 10.9 years in the quarter a year ago.
General Maritime announced a regular dividend payment of 62 US cents a share, payable to shareholders of record as of March 9.
The company pays most of its cash flow in a quarterly dividend. Only interest expenses and a reserve fund set aside for vessel acquisitions and fleet maintenance are withheld.
