Net revenues were influenced by three basic factors including: 1) a somewhat stronger charter market for Aframaxes, 2) an unimproved market for Handy-sized product carriers, and 3) the maturity and termination of four long-term bareboat charters and reemployment with time charters. The shift from bareboat to time charters was also reflected in significantly higher operating expenses.
Despite the comparison with the first quarter of 1999, Management was encouraged by the increase in first quarter 2000 net income compared with the fourth quarter of 1999, when net income was $0.87 million.
Thus far, the second quarter of 2000 has continued the strong upward trend for Aframax charter rates, while products carriers have shown only modest improvement. Most industry observers forecast that year-to-year comparisons will be favorable for most tanker sizes for the remainder of 2000. MIF Management shares this optimism, particularly for modern, well-managed fleets.
MIF recently reaffirmed its confidence in the future of the tanker industry and its emphasis on the basic strategy of a young and growing fleet. Earlier this month, MIF concluded an agreement to purchase three Suezmaxes to be built and delivered by Hyundai in 2002. These new vessels will add further balance to the existing fleet of sixteen vessels comprised of seven Aframaxes, eight product tankers, and one VLCC with an average tonnage age of 7.5 years.
MIF will hold its annual general meeting in Athens on the 9th of June.