Players in the Far and Near East have spent close to $300m this month to pounce on older LPG vessels offloaded by some of the biggest names in the business.
This persistent buying interest propels prices to levels occasionally described by brokers as “huge”, amid an ongoing boom for seaborne oil and gas that is expected to continue in 2023.
This primarily applies to a $118m en bloc deal for a pair of 14-year-old, very large gas carriers (VLGC) believed sold by BW LPG.
Athens and London brokers report that the world’s largest owner and operator of such ships has offloaded the 84,600-cbm BW Austria (built 2009) and 82,500-cbm BW Odin (built 2009) for about $59m each.
Contacted by TradeWinds, a BW LPG spokesperson said it is standard company policy to not comment on “market speculation”.
BW LPG, however, is known to be a frequent seller of ships in that age. Brokers seem assured that the BW Austria and BW Odin are heading to FGAS Petrol of Vietnam, which will take delivery of them in the second quarter of next year.
The BW Austria and BW Odin are fitted with open-loop scrubbers, which allows them to run on cheaper fuel oil. Their price, nevertheless, is still impressive.
By comparison, German owner Neu Gas Shipping reportedly fetched about $20m less by selling a pair of similarly aged VLGCs a couple of weeks ago — the 75,000-cbm sisterships Karoline N and Ronald N (both built 2009).
The price difference to the one achieved by BW LPG seems stark, even accounting for the fact that the Karoline N and the Ronald N are smaller than the BW Austria and BW Odin and aren't equipped with a scrubber either.
Neu Gas didn’t respond to a request for comment. A sale of the two ships would leave the company with a single ship, the 82,300-cbm Fritzi N (built 2009). Sources suggest that ship has been sold as well, in a sale-and-leaseback finance deal earlier this year.
Exmar, Zodiac are cashing in
Keen buying interest is driving prices up for smaller gas carriers as well.
Back in August, Belgium’s Exmar LPG was reported selling the 34,000-cbm Bastogne (built 2002) to Middle Eastern interests for between $19m and $20m.
That deal, however, failed — only to be replaced by another one this week at a higher level of about $23.5m. The new price reflects both improved market conditions and the fact that the Bastoge will change hands after completion of special survey and a drydocking.
Exmar didn’t respond to a request for comment. The Bastogne is its oldest ship and the company a few months ago ordered up to four midsize LPG carrier newbuildings at Hyundai Mipo Dockyard.
Another midsized gas carrier, the 37,000-cbm Gaschem Aachen (built 2003), proved very profitable for clients of Hartmann Shipping, who scored a neat asset play with it.
Several brokers report the Gaschem Aachen as sold for $22.5m.
The ship last changed hands about two years ago when BW LPG sold it for about $14.8m. TradeWinds is told that the vessel has been merely managed by Hartmann since, without being owned by the German company.
The Gaschem Aachen is expected to be delivered to its new, probably Middle Eastern owners, when its ongoing charter expires in the spring of 2023.
Manta widens gas footprint
Turkey’s Manta Denizcilik is said to the buyer of the 34,500-cbm Berkshire (built 2008) — one of four LPG carriers in the huge, mixed fleet of Zodiac Maritime.
The deal was concluded in early December at a price slightly above $33m and the vessel is due to be delivered to its new owners in January.
This is the second LPG carrier that Manta, or clients thereof, are buying this year.
In July, TradeWinds identified the Istanbul-based company as the buyer of the 38,500-cbm Eco Nebula (renamed Salacak, built 2007) — a ship previously co-owned by US-listed StealthGas and joint venture partners.
The seller of the Berkshire, Zodiac, seems to be in end-year fleet cleaning mode. As TradeWinds reported earlier this week, the Eyal Ofer company has also scrapped its oldest bulker and is lining up the sale of its oldest tanker as well.
