Arendal Dampskibsselskap (ADS) has pledged to stick with shipowning as the company looks to sell one of its last wholly-owned vessels.

Bjorn Tore Larsen, ADS' controlling shareholder, has denied market rumours that the company now is focusing only on VLCC owning spin-off ADS Crude Carriers, which is listed on the Oslo Merkur market.

Cyprus and Arendal-based Larsen insisted that the company does not plan to exit private shipowning, adding that he is optimistic for the prospects both for tankers and bulkers.

The talk emerged amid reports that ADS is looking to sell its privately-owned, 76,000-dwt bulker ADS Arendal (built 2004). The Sasebo Heavy Industries-built vessel is on its way to China, where it will be available for inspection by prospective buyers.

The ship could likely fetch close to $8m today. ADS bought the vessel in 2014, when it was the Lowlands Nello, for $17.2m.

A sale would leave ADS with just one wholly owned vessel: the 73,400-dwt bulker ADS Galtesund (built 2007).

ADS set up ADS Crude in 2018 when John Fredriksen’s SFL Corp bought a 17.2% stake in the venture.

Subsidiary ADS Shipping Ltd took a 10.6% stake in ADS Crude, which bought three 2002-built VLCCs from SFL and plotted further acquisitions.

At the same time, ADS' privately owned fleet has been reduced. In October 2017, it sold the Imabari Shipbuilding-constructed, 76,000-dwt bulker ADS Kristiansand (built 2008) to Safety Management of Greece for $14.9m. ADS had bought the vessel for $14.8m.

In an off-market deal in September 2019, ADS sold the 107,000-dwt tanker ADS Oslo (built 2003) to Buena Lintas Lautan of Indonesia for $13.5m.

The Norwegian company continued to unload its last privately-owned tanker. Last month, ADS announced the sale of the 290,000-dwt ADS Stratus (built 2002) for $23.6m to an undisclosed buyer.

Brokers said the tanker went to United Arab Emirates-based Koban Shipping, which has renamed it Calliope.

ADS, which was established in 1857 and is among Norway’s oldest shipowners, is also the manager of four shuttle tankers with small stakes in the vessels. The ships are controlled by AET and on long term-charter to Norway's Equinor.

Larsen has a 51% stake in the OSM Group, which is one of the world’s largest shipmanagement companies. Last year, he sold a 49% stake of this outfit to Oaktree Capital Management for an undisclosed price.

ADS is part of Cyprus-based BT Larsen & Co. At the end of 2019, the shipowner had book equity of NOK 118m ($13m).