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Gener8 Maritime, Inc., a U.S.-based transporter of crude oil, reports that net income declined by $62.3 million, or 48.1 percent, to $67.3 million in 2016.

Net income for the last three months of 2016 was $5.8 million compared to $45.5 million during the corresponding period in 2015.

The decline in full-year net income was recorded despite a $57.5 million jump in net voyage revenues to $392.1 million. Fourth-quarter net voyage revenues dipped just over $1 million to $99.6 million.

Full-year operating expenses jumped $93.2 million, or 51 percent, to $275.9 million, and, as a result, operating income declined by $35.7 million, or 23.5 percent, to $116.3 million.

Fourth quarter operating expenses also rose, by $26.0 million to $76.3 million, which saw operating income drop to $23.3 million compared to $50.4 million the previous year.

Eco vessels

In its financial results, Gener8 highlighted the performance of its 'Eco' VLCC newbuild vessels. During the last quarter of 2016, Eco VLCC operating days to rose to 77 percent, compared to 29 percent in the prior-year period.

Gener8 has taken delivery of five Eco newbuild VLCCs since the end of the third quarter of 2016. The Gener8 Miltiades, the Gener8 Noble and the Gener8 Theseus were delivered during the fourth quarter of 2016, and the Gener8 Hector and the Gener8 Ethos were delivered after the end of the quarter.

"As we continue to receive vessels from our newbuilding program, it becomes increasingly apparent that a two-tier market exists favouring modern, 'Eco' vessels. For the second consecutive quarter, our 'Eco' VLCCs earned between 10 percent and 15 percent more on an average daily TCE [time charter equivalent] basis than our non-'Eco' VLCCs," said Peter Georgiopoulos, chairman and chief executive officer of Gener8 Maritime.

"Following the completion of our newbuilding program expected this year and assuming no further changes to our fleet, the dwt weighted average age of our fleet will be 4.9 years, and our VLCCs will have an average age of just 2.7 years, giving us the youngest and most modern VLCC fleet among our public company peers," Georgiopoulos added.

On the issue of bunker prices, Georgiopoulos noted: "Marine fuel prices have been steadily increasing over the last year, highlighting the fuel efficiency of our 'Eco' design vessels, which have quickly become a significant driver of the favourable TCE rates we have been able to achieve in a relatively weak rate environment. We believe this advantage will become more pronounced over time."