Norway's Odfjell remains in no hurry to offload its only two gas carriers after taking full control of the ships.
The Oslo-listed chemical tanker owner acquired partner Celsius Shipping's stake in joint venture Odfjell Gas, which owns the 9,000-cbm ethylene ships Bow Guardian and Bow Gallant (both built 2008).
Speaking on a conference call with analysts, Odfjell chief executive Kristian Morch confirmed the company is not looking to retain the vessels.
"Having two gas carriers is not a strategic investment," he said.
"If there is a way to sell those well, we will consider it."
Earning money
The vessels, which have been on the sales block for nearly two-and-a-half years, were fixed to Brazil's Braskem in November for 18 months.
Odfjell revealed the duo brought in $3.8m on a time charter equivalent basis in the first quarter.
"We have placed them on good-earning time charters, so there's no rush," Morch added. "So for the right opportunity we will sell the gas carriers."
The company refinanced four of its chemical tankers to fund the acquisition from Celsius.
The ethylene pair is assessed as worth about $17m each by VesselsValue.
Morch said there is a combined debt of $21m on the vessels.
Not happy
Odfjell posted a loss of nearly $16m in the first quarter in weak markets.
Morch said it was "not a quarter we are very happy about", but he added the company operated well in a difficult environment.
He pointed to pandemic restrictions that have tightened in Singapore and elsewhere. "The biggest challenge we have is being able to move seafarers around," the CEO said.
Contract of affreightment nominations are stable and the company is adding "meaningful volumes" to its portfolio, Odfjell said.
The clean product market has "not really picked up", but Morch said he is seeing increased activity in speciality chemicals, with rates beginning to rise.
Swinging back?
Morch was asked at what rate level MR tankers would leave the chemical tanker trades and return to carrying oil products.
He said this was difficult to say but a "normal-ish" rate would be $15,000 per day.
"If we reach that point tonnage will swing back," he added.
Clarksons Platou Securities said MR tanker rates surged 28% on Wednesday to $9,200 per day for conventional vessels and $12,400 for eco-vessels. There was significant activity in the Atlantic, with US Gulf to Europe diesel exports staging a sharp recovery overnight, the investment bank said.
"Tonnage availability has tightened for several regions, particularly in the Mediterranean," Clarksons Platou added.
