Dear fellow shareholders,
We established ADS Crude Carriers Plc in mid-2018 during a low point in the tanker market and 2019 is thus our first full year of operation.
During the past 12 months:
- Our ships were upgraded with exhaust emissions cleaning systems (scrubbers) ahead of the implementation of IMO 2020;
- We maintained top-class (CAP-1) rating following dry dockings and intermediate surveys for all three of our vessels;
- And we delivered on our commitment to return earnings to shareholders in the form of quarterly dividends.
I write this letter at a time where a pandemic disease known as Covid-19 or the Corona virus has impacted the life of every person on the planet. Our immediate priority is the safety, health and wellbeing of all of our people and their families. Our seafarers have been significantly impacted as crew changes are for the time being not possible. I would like to thank both the crew who remain onboard for longer and the crew at home waiting to sign-on for their hard work, positive attitude and understanding.
I do not know what the long-term economic consequences of this virus will be, but short-term it is clear that it will have a major impact on the financial markets and world trade. This does not necessarily mean that the tanker market will be weak, as the supply and demand ratio of tankers is influenced by many factors, a number of which are dynamic and unpredictable, such as oil price and contango, storage, sanctions, and security issues. The VLCC market is volatile and, hence, hard to forecast.
If the market is to be strong over the next couple of years – as many market analysts have forecast – our Company will be well positioned to generate significant profits and cash flow. Our vessels have a low cash break-even and we will deliver all free cash back to our shareholders as dividends.
I am grateful to have you onboard as co-owners in ADS Crude Carriers Plc.
Bjørn Tore Larsen,
Chairman