Jinhui Shipping & Transportation has resumed selling its veteran vessels as it focuses on a more efficient fleet.
The Oslo and Hong Kong-listed owner said it had agreed to offload its oldest ship, the 52,700-dwt supramax bulker Jin Feng (built 2004), to ETL Shipping in Singapore.
ETL is not listed with any vessels.
The Jin Feng fetched $8.08m, having joined the fleet in May 2021 from Taiwan Navigation for $10.8m.
Jinhui said the book value was $10.2m at 30 June, which would entail a $2.2m book loss after expenses.
The company’s oldest ships will now date from 2006.
The Hong Kong owner pointed out that the deal will still generate positive cash flow.
The aim was to “further strengthen liquidity”.
Proceeds will be used for general working capital.
The ship made $1.9m in profit in 2022.
Jinhui said it is continuing to renew the fleet with younger, more efficient ships.
It will have 23 bulkers after the sale goes through.
Five out, three in
Three supramaxes and two post-panamaxes built between 2001 and 2010 were sold last year and three 2014-built ultramaxes were brought in.
Jinhui logged a $6.51m second-quarter loss, down from a $20.3m profit for the same period in 2022, as the supramax sector lost much of the momentum it had a year ago.
Revenue dropped to $22.8m, from $50.6m a year earlier.
