Denmark's AP Moller Maersk, reporting first quarter results, said its Maersk Tankers unit performed better during the period helped by improved market conditions.
Maersk Tankers operates in the crude and oil product segments and manages a fleet of more than 150 vessels.
"The improved market impacted all segments positively in Q1," Maersk said.
It said the LR segment performed better than the same period last year on a strong transatlantic market, while the MR segment was hit by refinery maintenance in key markets.
"The Handy segment benefited from a stronger market in the Baltics and in the Black Sea/Mediterranean region," Maersk said.
First quarter profit was $28 million after a loss of $15 million in the same period last year, helped by improved rates.
It said TCE (time charter equivalent) earnings increased on average 5% in Q1 in the product segment and as much as 92% for the VLCC segment, while administrative expenses have been reduced by 17%.
Maersk Tankers said plans to renew its fleet continued during the quarter.
To renew the product fleet, two MR newbuilds were ordered. Maersk said that the newbuild program consisted of six MR vessels to be delivered in 2016 and 2017.
Maersk said the two new build MR vessels order was placed with South Korean shipyard Sungdong Shipbuilding & Marine Engineering for an undisclosed sum.
The company says its MR investment aligns with its continued strategy to focus on the oil product segments.
Earlier this year Maersk Tankers CEO Morten Engelstoft said the company had sold its fleet of 15 VLCCs to Antwerp, Belgium-based Euronav NV for $980 million.
Engelstoft said he saw more years of pain ahead for crude tankers, while the product tanker sector would probably be the first to recover.
An MR tanker can carry about 30,000-40,000 mt of oil products or about 35,000 mt of crude.
Giving forward guidance in its Q1 results Wednesday, Maersk said Maersk Tankers would continue to see improved market conditions.
It said that the unit in which its tanker division is placed, expected a full year 2014 profit above its 2013 level.