Higher Tanker Rates Push Gener8 Back to Black

zoom  U.S.-based operator of crude oil tankers Gener8 Maritime, Inc. recorded an adjusted net income of USD 36.5 million for the three months ended September 30, 2015, up from a net loss reported in the same period last year of USD 13.3 million. The increase in adjusted net income was primarily assigned to an increase in the companys net voyage revenue, resulting from higher rates and lower fuel costs compared to the prior year. Net income for the three months ended September 30, 2015 was USD 33.2 million compared to a net loss of USD 14.3 million for the prior year period. We are pleased with our operating and financial results for the third quarter of 2015, as we delivered a strong financial performance. During the quarter, we took delivery of our first eco VLCC vessel in our newbuilding program, the Gener8 Neptune, which entered the Navig8 VL8 Pool.  In addition, as of November 1, 2015, we took delivery of both the Gener8 Strength and the Gener8 Athena, which also have entered the Navig8 VL8 Pool. We continue to deliver on our growth plan as stated during our IPO, said Peter Georgiopoulos, Chairman and Chief Executive Officer of Gener8 Maritime. Adjusted EBITDA for the three months ended September 30, 2015 increased by USD 42.2 million to USD 48.3 million compared to the same period in 2014. As of September 30, 2015, the companys cash balance was USD 244.6 million, up from USD 147.3 million from December 31, 2014 and the companys net debt was USD 546.1 million. For the nine months of 2015, Gener8 Maritime recorded adjusted net income of USD 104.8 million, against an adjusted net loss of USD 24.5 million in 2014. The increase in adjusted net income was primarily due to an increase in the Companys net voyage revenue due to increased rates and lower fuel costs. Adjusted EBITDA for the nine months increased for USD 83.9 million to USD 116 million year-on-year. We continue to take advantage of what we believe to be a tightly balanced tanker market resulting in strong spot rates.  We are excited to have closed over $1.6 billion in financing, encompassing a refinanced facility for our fleet on the water, a Korean ECA facility for the Korean newbuildings, and a bilateral loan for the first Chinese newbuilding. We look forward to utilizing our dynamic platform and balance sheet to grow our Company and maximize shareholder value in the future, said Leo Vrondissis, Chief Financial Officer. As of November 1, 2015, Gener8 Maritimes fleet was comprised of 47 tankers, including one time chartered-in VLCC and 46 owned vessels comprised of 28 vessels on the water, and 18 eco VLCC newbuildings with expected deliveries through February 2017. The newbuildings are expected to more than double the companys owned fleet capacity to 10.8 million DWT. As of November 1, 2015, nine of the companys VLCC vesselswere deployed in Navig8 Groups VL8 Pool, all 11 of the Companys Suezmax vessels were deployed in Navig8 Groups Suez8 Pool and all four of the Companys Aframax vessels were deployed in the Navig8 Groups V8 Pool. The company expects to deliver into the VL8 Pool each of the newbuilding VLCCs as they deliver.