Brokers continue to talk up values of modern secondhand VLCCs as rumours swept the market of a deal by Saudi Arabian state shipowner Bahri for two VLCCs.
The company was linked to a swoop for 2019-built vessels owned by Dubai-based Al-Iraqia Shipping Services and Oil Trading (AISSOT) at a very firm $114m.
AISSOT owns the 321,000-dwt Dijilah and Kirkuk (both built 2019).
They operate in the Tankers International VLCC scrubber pool.
The Samsung Heavy Industries ships were sold to the company by BW Group in 2018 as resales at $88m each.
Brokers were reporting talk of a price level of $110m last week for an unnamed 2019-built VLCC.
VesselsValue has an assessment of $106.6m on the Dejilah and $108.5m on the Kirkuk.
AISSOT lists eight VLCCs on its website. The other six are chartered in from owners like Navios Group and Thenamaris.
Bahri would have 40 VLCCs if the deals are confirmed.
That includes one of the oldest VLCCs in the company's fleet that several brokers have been reporting that Bahri is about to sell — the 303,100-dwt Harad (built 2001), which is fetching about $30m in a deal with unidentified Chinese or Far Eastern buyers.
In another, widely reported deal for older VLCC tonnage, clients of Singapore-based Amarine Ship Management are offloading the 301,000-dwt Jessica D (built 2004) to unidentified buyers for $32.5m.
Cleaves sale and purchase broker Einar Straume said there had been few confirmed tanker sales this week, but the Bahri rumours made “interesting reading”.
New high point
He argues that if this price is considered a market level, “values for modern VLCCs are certainly due an upwards revision”.
Direct comparisons are hard to come by, but Straume pointed to the massive sale by Euronav to Frontline of 24 VLCCs with an average age of 5.3 years.
The price worked out at $98m on average.
Nine of the ships ranged in age from four years to one.
Each of these was valued above $100m, with the 300,000-dwt Derius (built 2019) assessed at $107m.
In May, US-listed DHT Holdings of the US bought a 2018-built VLCC for just $94.5m.
AISSOT is 77.5% owned by AMPTC in Kuwait and rest by Iraqi Oil Tankers Company
The company has been contacted for comment. Bahri does not comment on market rumours.
Harry Papachristou contributed to this article
