Navig8 Group chief executive Nicolas Busch has expressed regret at how tragic circumstances have boosted tanker markets.
Product carriers in particular have benefited from route disruptions caused by Russia’s invasion of Ukraine.
“The sudden escalation in Russia’s aggression against Ukraine in February — ending nearly 80 years of peace in Europe — is having a profound effect, both regionally on Ukraine’s people and their way of life, and globally in terms of economic impact,” Busch said in the annual report of Navig8 Group’s investment company Navig8 Topco Holdings.
He explained that rising inflation has been stoked further by rapid rises in fuel and energy costs, which are feeding widely through supply chains to commodities and threatening living standards.
“For some, it is limiting access to the very basics of day-to-day life,” the UK-based principal said.
“With a tanker market already close to supply/demand balance, the inefficiencies arising from changed trading patterns, and sanctions applied to Russian businesses, assets and certain commodities, have sparked higher earnings in a tightened market," Busch added.
And he concluded: “While this recovery is overdue, the catalyst for it is most unwelcome.”
Navig8 Topco’s annual report reveals net earnings of $20.7m in the fourth quarter ended 31 March, turning around a $14.1m loss for the same period last year.
Revenue increased by $278.2m year-on-year to $1.05bn.
The group owns vessels and manages others.
Another new addition
It has been busy adding third-party tankers in the last few months.
The latest addition to commercial management is Greek owner Prime Bulk’s 73,000-dwt Clyde (built 2004), the group said.
This is the first time Prime Bulk has consigned a ship to Navig8.
The ship was acquired from Hafnia in April.
