Oslo-listed shipowner SD Standard Drilling has sold its 33.3% holding in a VLCC jointly owned with Idan Ofer and George Economou.
The Norwegian company, controlled by tycoon Oystein Stray Spetalen, said its disposal of the 300,000-dwt Gustavia S (built 2020) valued the tanker at $93m.
The deal is part of a switch to greener investments in renewables.
The vessel was acquired in January 2020 for $106m as a resale at Daewoo Shipbuilding & Marine Engineering.
US owner Hartree Partners had ordered it for $83.5m in 2018.
VesselsValue rates the Gustavia S as worth $90.26m.
Standard Drilling will receive net proceeds of $14.1m for the equity stake in the vessel. The book loss will be $800,000 in the third quarter.
Money to be recycled
The cash, and money from any future divestments of the offshore fleet, will be directed towards more liquid investments within Standard Drilling's core sectors, the company said.
"The transaction follows Standard Drilling's renewed focus on more diversified and liquid investments within the shipping and energy segments," added chairman Martin Nes.
"We are gradually building up our investment portfolio, expanding the team of investment professionals and implementing the strategy with controlled risk. The sale of our VLCC holdings is an important part of this transition."
Standard Drilling took a $6.2m impairment last November after revaluing the VLCC and its platform supply vessel fleet.
Partners taking over holding?
The Gustavia S is owned by a company called Zeta Owners and operated by Economou's TMS Tankers.
It is likely Economou and Ofer have acquired the 33.3% stake in the ship.
"Over the last few years, the combination of low commodity prices, ESG [environmental, social and corporate governance] concerns and uncertainty around long-term demand has triggered an abrupt stop to investments in the fossil sector," Nes said.
"In fact, today many of these companies have an implied cost of equity in excess of 25%, making any new investments prohibited by the capital markets."
Standard Drilling believes that these dynamics, coupled with the long decarbonisation path the company has embarked on, set the stage for a commodity supercycle that could last three to five years.
"It is these opportunities with outsized return potentials that Standard Drilling seeks to take part in," said Nes.
The owner's investment portfolio increased to $46m at the end of October, including gains so far this year of $14m.
The largest holding is in drilling company Weatherford International.
