Strong first quarter freight rates and vessel sales buoyed Bermuda-registered Bona Shipholding Ltd. to a $10.8 million profit for the three months ended March 31, the shipping company said on Friday.

The company has also said it has initiated a fleet renewal programme.

During first quarter 1997, Bona said its aframax and panamax OBOs obtained rates well ahead of the prior year.

In first quarter 1996, Bona made $244,000.

But 167 off-hire days in the recent quarter hurt earnings by $3 million.

Company president Rudolph Agnew said: "The strong market for aframaxes in the Caribbean and Atlantic continues into the second quarter but is not expected to remain at this level throughout the summer.

"Bona believes, however, that the average rate for 1997 will be above those obtained last year.'' On fleet renewal, Bona has signed contracts with Samsung Heavy Industries for three new aframax tankers.

The vessels, to cost about $130 million in total, are scheduled for delivery in 1999.

The building contract can be extended to provide additional vessels and will be the core of the company's fleet renewal programme.

"The higher cargo intake, lower operating costs and better employment opportunities of the new ships, all contribute to higher operating margins,'' Bona said.

"The trend toward customers requesting double hull ships for important contracts is accelerating and in order to remain a preferred supplier, Bona needs to provide the tonnage required.'' The vessels are modern 113,000 dwt double hull tankers with a total carrying capacity of 800,000 barrels of crude oil.

In other results, the company said consolidated operating profit before depreciation, amortisation and sales gain was $17.6 million compared to $19.6 million in first quarter 1996.

Operating profit, which included $9.2 million ship sales profit, was $15.0 million compared to $6.8 million. Assets were $660.2 million compared to $755.6 million.

Freight revenues were $45.8 million compared to $47.1 million while voyage expenses were $13.6 million compared to $9.1 million.

Cash flow from operations was unchanged at $13.1 million. Per share earnings were 38 cents compared to one cent.

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