Oslo-listed investment company ADS Maritime has banked its last cash from a 20% holding in a Formosa Plastics VLCC.
The Norwegian operation bought into the 298,100-dwt FPMC C Melody (built 2011) in 2022, with the ship trading in the Navig8 VL8 pool.
The share deal was extended in 2023 to May 2024, and then again to 23 August, when it expired.
ADS said in its third-quarter results that during the first half of the year, the market for VLCCs was favourable, “resulting in solid cash flow” from the investment.
After the contract ended in August, ADS received a $337,600 refund of cash paid in as working capital in 2022.
The investment company also has a similar deal through a 20% stake in the 49,900-dwt MR tanker Ayoe (built 2020), controlled by Nissen Kaiun, which is also in a Navig8 pool.
The share contract is firm for 36 months until June 2025.
In the first six months, the market for MR tankers had also been positive, ADS said.
Cash flow was again solid, but during the third quarter the MR market weakened. Cash flow remained “marginally positive”, the firm added.
Nothing from MISC tankers
ADS received no dividend this quarter from its 5% holding in two companies controlling four modern shuttle tankers majority-owned by Malaysia’s MISC.
They are on long-term charters, mainly to Norway’s Equinor.
ADS’ total cash and cash equivalents were reduced by $1.5m to $8.4m on 30 September.
No new investments have been made in 2024, the company said.
Net profit was $277,000, down from $423,000 in 2023.
