Free cash flow
Previously, we discussed crude tanker companies’ EBITDA. In this article, we’ll discuss their FCF (free cash flow). FCF, which is operating cash flow minus capital expenditure, represents the cash a company can generate after spending money to maintain or expand its asset base.
- In all four quarters of 2017, Teekay Tankers (TNK) had positive FCF. In the first quarter of this year, this situation changed. Teekay Tankers had negative operating cash flow in the first quarter, which turned its first-quarter FCF negative—it reported FCF of -$6.4 million.
- In 2017, DHT Holdings’ (DHT) operating cash flow was lower than its capex, leading to it recording its second consecutive year of negative FCF. The company was delivered seven vessels in 2017, which increased its capex. The situation was the same in the first quarter, with DHT Holdings recording FCF of -$1.8 million.
- Last year marked Nordic American Tankers’ (NAT) second consecutive year of negative FCF. In the first quarter, NAT recorded FCF of -$13.1 million.
- Euronav (EURN) earned FCF of $33.4 million in 2017, marking its third consecutive year of positive FCF. In the first quarter, its FCF was -$49.6 million.
- Navios Maritime Midstream Partners (NAP) had FCF of $18.3 million in 2017, marking its fourth consecutive year of positive FCF. The situation remained the same in the first quarter, with NAP reporting FCF of $22.2 million.