Elcano Closes 2025 with Losses of $43.3 Million Due in Part to Weak LNG Market

Shipping Company Elcano reports in its annual report that 2025 “has been a year marked by significant economic and financial challenges,” although also “by strategic advances that strengthen the foundations for future growth and sustainability of the Group,” says its president, María del Rosario Martín Alonso. Elcano practices notable transparency in its management, as can be seen in the exhaustive detail of the document.

Elcano Group closed 2025 with a post-tax loss of $34.9 million and a pre-tax loss of $43.3 million. “This result is mainly explained by two factors. Firstly, negative exchange differences amounting to $17.4 million, arising from the conversion to dollars of debt denominated in euros in a context of strong depreciation of the dollar against the euro, which represents an accounting impact without effect on the Group's cash,” it adds.

Secondly, the only vessel currently operated in the spot market “has recorded losses due to the exceptional weakness of the liquefied natural gas (LNG) transportation market, characterized by very low and even negative freight rates. This situation has caused periods of inactivity and losses close to $15 million.”

The rest of the fleet has maintained stable performance, although certain operational incidents at the unloading terminals of two key clients have reduced the profitability of five vessels operating under long-term contracts.

As a result, the Group's EBITDA stood at $62.9 million ($71.2 million in 2024) and EBIT at $5.3 million ($16.9 million in 2024).

Among the milestones of the year is the incorporation of a new dry cargo vessel, acquired second-hand and backed by an eight-year long-term contract.

Additionally, a contract was signed with a top-tier international client for the operation of a new LPG vessel currently under construction, which is expected to enter service by the end of 2027 or early 2028.

In financial terms, Elcano Group has strengthened its structure through the issuance of bonds worth $115 million in the Norwegian market made in May 2026.

“This operation will allow for a reduction in corporate debt denominated in euros, reducing exposure to exchange rate risk and addressing the renewal of upcoming maturities. At the same time, we continue to advance in the partial refinancing of the debt associated with nine vessels, with the aim of optimizing the financial structure, strengthening liquidity, and reducing short-term corporate debt. These actions will allow the Group to meet its financial commitments in an orderly manner and aligned with its future cash generation capacity,” it states.

Elcano thanks “all the professionals in the Group for their commitment and dedication in a particularly demanding year” and also the financial entities and advisors “who accompany us in the financing and refinancing processes. Their support and trust are fundamental,” it concludes.

Vice President and CEO Juan Manuel Cordeiro explains that during the 2025 fiscal year, Elcano Group transported a volume of 28.9 million tons and 4.7 million cubic meters of liquefied gas. In aggregate terms, the total activity of the fleet amounted to 33.7 million tons equivalent, compared to 41.6 million in 2024.

“The evolution of the year mainly reflects a lower physical volume in oil transportation due to the reduced volume of Brazilian crude oil transported, partially offset by the stability of dry cargo and the good performance of chemical traffic,” it adds.

Regarding the transportation of oil and its derivatives, the volume transported reached 17.6 million tons, a level lower than the previous year. This reduction is mainly concentrated in crude oil, while petroleum products had only a slight variation.

“Nevertheless, this segment continued to be the main component of transportation activity in tons, representing approximately 61% of the total transported excluding liquefied gas,” it adds.

On the other hand, the volume of dry cargo transported reached 9.2 million tons, slightly above the previous year. This performance is particularly noteworthy following the reorganization of the fleet and the sale, in 2024, of the two Capesize units, which were almost exclusively dedicated to the transportation of iron ore.

The 2025 fiscal year reflects a significant recovery in the volume of bauxite, which reached 3.5 million tons, mainly explained by the incorporation, during the first quarter of the year, of the new Kamsarmax unit. Meanwhile, the volume of iron ore stood at 5.5 million tons, while coal represented 0.2 million tons.

In liquefied gas transportation, the volume transported was 4.7 million cubic meters during 2025, slightly lower than the volume transported in 2024, although within a reasonably stable range compared to previous years.

Activity remained supported by the four vessels in the LNG fleet, with smaller contributions in volume from the three LPG transport vessels.

Finally, our fleet of chemical vessels transported 2.1 million tons, slightly exceeding the volume recorded in 2024 and aligning with the level reached in 2023.

“This stability confirms the recurring nature of this segment, which continues to provide diversification against the greater volatility observed in other traffics,” highlights Cordeiro.

“The evolution from 2024 to 2025 shows a certain reorganization of the activity mix: oil and its derivatives reduce their relative weight, while dry cargo gains relevance within the transported tons, and chemicals and liquefied gases maintain a stable contribution, reinforcing the sought diversification among the different sectors,” concludes the CEO of Elcano Group.

Photos: Elcano Group