Performance Shipping sees 'firm' tanker market
Greek Aframax-class oil tanker owner Performance Shipping said today it expects disruptions to oil trade flows and constrained fleet growth to continue supporting freight rates.
The shift in trade patterns from the Russian oil trade and disruptions in the Red Sea, resulting in longer-haul tanker voyages and increased tonne-mile demand, continued to support rates in the second quarter of this year in conjunction with limited tanker supply growth, the company said.
Performance Shipping's average time charter equivalent (TCE) rate for the second quarter was $30,970/d, compared with an average $41,868/d for the same period in 2023.
Performance Shipping said it expects rates to remain "firm" and it will continue to balance exposure to short- and medium-term time charter contracts with the spot market. Aframax rates are generally lower globally than in 2022 and 2023, during the peak of disruption from the G7+ embargo on Russian oil imports, but remain above long-term historical averages.
The company has one of its seven Aframaxes operating in the spot market, under a pool arrangement, while the other six are under time charter contracts with anticipated fixed revenue of $61.1mn at the beginning of the third quarter. One time charter contract expires in August, and Performance Shipping expects to employ this tanker in the "promising" spot market into the seasonally strong autumn and winter periods.
The company has secured five-year time charters for three newbuild LNG-ready Aframaxes, which will generate gross revenues of $169.8mn, it said. It has one Long Range 1 (LR1) product tanker on order with an expected delivery between late 2025 and early 2027.
Performance Shipping made a profit of $10.2mn in the second quarter of 2024, down from $18.4mn in the same period of 2023. Revenue was $20.5mn in April-June 2024 compared with $31.5mn in the same period of 2023 because of a decrease in TCE rates and a drop in ownership days following the sale of P Kikuma in December 2023, the company said.
Related news posts
Thailand appoints Paetongtarn Shinawatra as new PM
Thailand appoints Paetongtarn Shinawatra as new PM
Singapore, 16 August (Argus) — Thailand appointed Paetongtarn Shinawatra as its new prime minister today, after dismissing former prime minister Srettha Thavisin for an ethical violation. Thailand's constitutional court dismissed Srettha Thavisin on 14 August for violating ethical standards by appointing a cabinet minister who was previously imprisoned. Paetongtarn Shinawatra, of the ruling Pheu Thai party, is the daughter of former ousted prime minister Thaksin Shinawatra, and was the sole candidate nominated for the position. A special parliamentary session on 16 August voted for the new prime minister, where Paetongtarn Shinawatra won 319 out of 493 votes. Thaksin Shinawatra's younger sister Yingluck Shinawatra also served as the country's prime minister from 2011-14. She fled into exile following widespread protests in 2014, which saw demonstrators seeking to overthrow the government, and the opposition claiming that the deposed Thaksin Shinawatra was still controlling the administration. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Agunsa offers biodiesel bunkers in Argentina
Agunsa offers biodiesel bunkers in Argentina
New York, 15 August (Argus) — Chile-based marine fuel supplier Agunsa, which also sells marine fuels in Argentina, is now offering biodiesel for bunkering in Argentina. Agunsa's subsidiary Total Bunkering — not affiliated with France's TotalEnergies — entered into a partnership with an unnamed local Argentinian supplier to procure used cooking oil methyl ester (Ucome), which it can blend with either very low-sulphur fuel oil (VLSFO) or with marine gasoil. The fuel is International Certification in Sustainability and Carbon (ISCC)-certified. It can be supplied via truck to the ports of San Nicolas, Campana, San Pedtro, Rosario and the Ternium-Siderar terminal. Globally, one of the most popular biodiesel blends is B30, a blend of 30pc Ucome and 70pc VLSFO. An Argentinean B30 biodiesel bunker blend could command a premium of about 80pc to the price of VLSFO, Agunsa told Argus . Buenos Aires, Argentina, VLSFO was assessed at an average of $599/t on 1-14 August, which would place B30 at around $1,078/t. By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Unplanned shutdown at Czech Litvinov refinery
Unplanned shutdown at Czech Litvinov refinery
London, 15 August (Argus) — The 108,000 b/d Litvinov refinery in the Czech Republic was shut down on 15 August following an energy supply issue, according to market sources. The refinery will be down for at least five days, the sources said. The refinery's operator, Orlen Unipetrol, has yet to respond to a request for comment. Litvinov receives Russian Urals crude through the Druzhba pipeline system and produces multiple refined products and petrochemicals including transport fuels and bitumen. The shutdown will significantly disrupt transport fuel supply in the Czech Republic, requiring increased imports from neighbouring countries. On 29 July, Orlen Unipetrol declared force majeure on petrochemical products polyethylene and polypropylene because of a cooling system malfunction at Litvinov. The company said an outage at a cooling water system supplying its ethylene cracker had resulted in an emergency shutdown of the unit. The company subsequently lifted the force majeure on 7 August as the cracker outage was short-lived. It is unclear if today's refinery shutdown will have any impact on the company's petrochemical operations. By Fenella Rhodes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
UK to exclude SAF from China biodiesel investigation
UK to exclude SAF from China biodiesel investigation
London, 15 August (Argus) — The UK has proposed revising the scope of its an anti-dumping investigation into China-origin biodiesel and hydrotreated vegetable oil (HVO) to explicitly exclude sustainable aviation fuel (SAF). The investigation, which was launched on 5 June, was never intended to include SAF, but the UK's Trade Remedies Authority (TRA) subsequently asked interested parties for feedback on whether it should be included after it was brought to its attention that SAF could be considered to fit the description in the initial notice. That notice stated that the inquiry would cover "fatty-acid mono-alkylesters or paraffinic gasoils obtained from synthesis or hydrotreatment of non-fossil origin, in pure form or as included in a blend" in the period from 1 April 2023 to 31 March 2024. The TRA has now proposed amending the description to explicitly exclude "sustainable aviation fuel, in pure form or as included in a blend". But there will be no change to the commodity codes as a result of the revision. The written scope of the investigation is the primary focus at this stage, with the commodity codes serving merely as reference points and not binding criteria, according to the TRA. SAF should be excluded from the investigation because it has distinct production processes and raw materials compared to HVO and fatty acid methyl esters (Fame), limited interchangeability with road transport fuels, a higher selling price and a different regulatory framework under the UK's SAF mandate starting in January 2025 , the TRA said. SAF also benefits from a tax rebate for aviation use, making it economically unviable for road transport use, and has a different customer base, it said. Interested parties have until 21 August to submit any comments, after which the TRA will make a final decision on the scope of the investigation. The investigation follows an application by the Renewable Transport Fuel Association (RTFA) on behalf of UK biofuels producers Argent Energy and Olleco, which alleged that exports from China to the UK were below market value, adversely affecting the UK biofuels industry. The RTFA advocated for including SAF, HVO and Fame in the investigation, citing their potential interchangeability and the minimal amount of investment needed to increase production of HVO and SAF in the UK. But Chinese biofuels producer Ecoceres argued that SAF should be excluded, arguing that it is not interchangeable with Fame and there is limited supply-side substitutability. Ecoceres also pointed out that the UK did not have a domestic SAF industry during the period under investigation, which means that imports from China could not have caused injury. The airline group IAG also supported excluding SAF, emphasising the aviation industry's reliance on imports due to limited global production capacity. The UK government officially confirmed last month that subject to parliamentary approval it will introduce a SAF mandate starting next year. Obligated suppliers will have to deliver a 2pc share of SAF in 2025, increasing to 10pc in 2030, 15pc in 2035 and 22pc in 2040. The obligation will remain at 22pc from 2040 "until there is greater certainty regarding SAF supply", the government said. Under the mandate, hydrotreated esters and fatty acids (HEFA) SAF can be used to meet 100pc of SAF demand in 2025 and 2026, but it will be capped at 71pc in 2030 and 35pc in 2040. HEFA is the most common type of SAF today, and is expected to account for over 70pc of global production by the end of the decade, according to Argus data. By Evelina Lungu Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more