The deal to acquire two new chemical tankers was too good for Stainless Tankers to refuse.
Alex Karakassis, chief executive at the Oslo-listed shipowner, said the purchase of the 20,000-dwt Marmotas and 20,800-dwt Monax (both built 2005) for a total of $27m followed a “unique set of circumstances” and was not the sort of thing the market should expect going forward.
“If you look at current market rates and compare the transactions, this is an excellent price we’re getting,” Karakassis said on Stainless Tankers’ third-quarter earnings call.
“They’re in the money from day one.”
He said the ships were already managed by its largest shareholder, Tufton Investment Management, and trading in the Womar pool, where five of Stainless Tankers’ ships already trade and earn above-market rates.
Karakassis added that Stainless Tankers had the capacity to boost its loan to pay for the ships in a market that had softened through the summer, lowering asset values.
He said the sellers were not selling for market-related reasons and that the ships, despite their age, were in very good condition and had just undergone retrofits and special surveys.
“Just all the stars are aligning here. That’s why we’re doing this transaction,” Karakassis said, noting that he intends this as a “one-off event” as the company’s ultimate strategy is to sell the fleet in several years.
He noted that the current target for disposing of the fleet would be in 2026, though that is not a firm date.
Including the two new vessels, Stainless Tankers has nine ships, with the Marmotas and Monax the oldest. It has three built in 2007, two in 2008 and another pair in 2009.
On the call, Karakassis said he believes chemical tankers with stainless tanks can trade beyond the assumed 25-year useful life and that, despite the age and non-eco design of the company’s fleet, the new Carbon Intensity Indicator rating rules from the IMO would not be a threat.
He said the currently fleet has a B rating and that the ships’ engines have been de-rated in recent years, to limit top speed.
For the third quarter, Stainless Tankers reported a $1.9m profit, against $11.7m in revenue.
Its shares closed at NOK 46 ($4.11), down NOK 1.99 since the open but up NOK 1.20 from the previous close.
