Formosa Plastics Marine Corp (FPMC) is selling its elderly vessels as it gears up to take delivery of new ships.
The Taipei shipowner recently sold three MR tankers and has put two more up for sale, a source familiar with FPMC said.
The chemical product carriers “are getting old and it is replacing them with new ships”, he added.
Another shipping player said the sales are part of a large-scale FPMC campaign to dispose of tankers that do not serve its own cargo needs. The sales efforts are said to not be restricted to the MR segment.
FPMC has sold the 45,000-dwt FPMC 20, FPMC 21 and FPMC 22 (all built 2009) for $14m each. VesselsValue and Maritime Strategies International estimates values of between $17.6m and $23.6m for tankers with the STX Offshore & Shipbuilding-constructed trio's specifications.
One sale-and-purchase broker said he is not surprised that FPMC’s MRs fetched a lower price.
“These are not the standard MR tankers. FPMC 20 and FPMC 21 are epoxy-coated but have one zinc-coated tank, while FMPC 22 is fully zinc-coated,” he said. “Only chemical tanker players that are involved in MR ships will buy these vessels.”
TradeWinds understands that FPMC is also looking for buyers for its CSC Jinling-built, 46,800-dwt FPMC 19 (built 2009), which is 100% epoxy-coated. Also on the block is the STX-constructed, 51,000-dwt FPMC 23 (built 2010), which is fully zinc-coated.
Sources said FPMC has a plan to sell a total of seven MRs. The ships involved have been trading mostly in the spot market or on time charters of six to 12 months.
Own cargo only
"The company does not want to be doing third-party business and is planning to dispose of ships not carrying the company's own cargoes," another sale-and-purchase broker said.
With the sale of the FPMC 20, FPMC 21 and FPMC 22, the Formosa Plastic Corp subsidiary's MR tanker fleet is reduced to 15 vessels.
In 2017, FPMC contracted CSSC Offshore & Marine Engineering’s Guangzhou Shipyard International to construct six 49,000-dwt product tankers at a reported price of between $32m and $33m apiece. It is scheduled to take delivery of them this year and next. The MRs were ordered as part of its fleet-renewal and expansion programme.
In addition, FPMC has sold the 74,862-dwt LR1s FPMC P Eagle and FPMC P Fortune (both built 2009) to Centrofin for $16.13m each.
FPMC has a fleet of 50 vessels that includes tankers up to VLCC and bulkers up to capesize. It also owns LPG carriers and has a single feeder containership.
Meanwhile, the company is planning to make its debut in the stainless-steel chemical tanker sector. It was reported to be in contact with yards for up to four 19,500-dwt vessels.
