Shipowner Euronav is being linked to an order VLCC tonnage with a contract for up to three vessels worth over $278m at Hyundai Heavy Industries.
Hyundai shipyard group Korea Shipbuilding & Offshore Engineering Co (KSOE) said on Monday it had signed a KRW 208bn ($185.8m) deal with a European company to build two 300,000-dwt VLCCs that will be constructed at Hyundai Samho Heavy Industries Co.
These two firm vessels will be due for delivery from the fourth quarter of 2022.
The deal includes an option for an additional vessel, KSOE said.
Newbuilding sources told TradeWinds they understand that Euronav is the owner behind the contract for the two conventionally-fuelled VLCCs. Euronav has been contacted for comment.
Building new
If confirmed, the newbuildings will mark a change of tack for Euronav, which had been seen competing for VLCC resales earlier this year.
In January, the company narrowly missed out on two 2016-built scrubber-fitted VLCCs that were bought by DHT Holdings from Awilco Eco Tankers for $68m each.
In early 2020, Euronav bought four VLCCs under construction at Daewoo Shipbuilding & Marine Engineering for delivery this year. The quartet — which was originally ordered by South Korea’s Sinokor Merchant Marine — cost Euronav $93.5m each.
This week’s HHI order prices the Euronav newbuildings at $92.9m each.
This illustrates how VLCC newbuilding prices have rebounded in recent months.
Clarkson Shipping Intelligence Network figures show that prices were around $92m in January 2020 but during last year they slipped back to $85m during the fourth quarter closing in December at $85.5m. Since then, they have inched back up, hitting $90.50 by the end of the first quarter.
The broker lists the current VLCC orderbook at 82 vessels or 9.6% of the fleet.
