Turkish-controlled tanker owner Advantage Tankers is moving into the VLCC segment with the purchase of two 10-year-old ships from China VLCC.
The Geneva-headquartered company confirmed it has bought the 297,000-dwt New Medal and the 296,000-dwt New Globe (both built 2009).
European brokers said Advantage is paying $41m to $42m for each of the Chinese-built ships in an enbloc deal.
But a filing from China Merchants Energy Shipping, the parent of China VLCC, said the ships were sold for CNY 521m ($74.1m) in total — much lower than market expectations.
Some brokers said the deal was concluded a while ago but is only surfacing now.
Estimates from VesselsValue and Maritime Strategies International put the value of the Jiangnan Shipyard-built New Medal at between $44.7m and $47.5m.
The Bohai Shipbuilding Heavy Industry-constructed New Globe is estimated to be worth $43.1m to $43.5m.
Those estimates come as large vessel values have soared, with the Baltic Exchange assessing the value of a five-year-old VLCC was worth more than $75.1m on 29 November, up from $73.7m at the end of last month and a leap from $64.1m at the end of 2018.
Expanding Advantage Tankers already has Chinese-built ships in its fleet with six suezmaxes built at Jiangsu Rongsheng Heavy Industries.
The company also has five MR tankers built at Hyundai Mipo Dockyard (HMD) and five aframaxes built at Samsung Heavy Industries.
Last year, Advantage Tankers was linked to an order for four 113,000-dwt ships at South Korea’s Samkang M&T yard, but it appears no deal was finalised.
Advantage, which was set up in 2014, is controlled by Gulsun Nazli Karamehmet-Williams, the daughter of Geden Holdings owner Mehmet Emin Karamehmet.
