Oslo-listed ADS Crude Carriers has moved into the second stage of its development with the sale of one of its three elderly VLCCs.
The Norwegian company said on Wednesday it had agreed to offload the 290,000-dwt ADS Stratus (built 2002) for a firm $25.5m as talk grows of a second wave of storage deals for big tankers.
The unnamed new owner will take delivery on or around 17 September when the ship has completed its current spot voyage.
VesselsValue assesses the vessel as worth $24.5m for further trading and at $14.5m for scrap.
Tanker buys launched company in 2018
The trio was acquired from John Fredriksen's SFL Corporation in 2018 for a combined $67.5m as the Arendals Dampskibsselskab (ADS) spin-off debuted on the Oslo exchange.
ADS fitted scrubbers to the vessels last year and then took advantage of booming markets this year to rack up healthy profits.
The shipowner had made back 68% of its $12m retrofit investment by 30 June.
In last month's second quarter results statement, ADS Crude Carriers chairman Bjorn Tore Larsen stressed the company's commitment to the tanker sector.
Despite a drop in rates in the third quarter, Larsen said: "We remain long-term positive and committed to the tanker market beyond the economic lives of our existing fleet.
Investments on the cards
"We will pursue investment opportunities in the tanker sector as we continue our focus on cash flow, dividends and operational excellence."
ADS has been contacted for further information on future strategy and the potential for disposing of its other tankers.
The second quarter profit was described as "strong" once more.
ADS said it had logged net earnings of $8.6m, up from $600,000 in the same period last year.
Revenue grew to $21m from $11m in strong markets, with the average rate for its veteran vessels standing at $64,300 per day.
"Yet again we deliver on our commitment to return a high proportion of earnings and declare a total distribution of $7.75m, meaning this is the second consecutive quarter for which we have distributed over 90% of net profits," Larsen added.
New blood recruited
Two of its ships operated spot during the period, with another on a six-month charter.
In June, parent group ADS brought in experienced investment banker Marius Halvorsen to focus on growth, with the company telling TradeWinds to "watch this space" as far as further developments go.
In April, Halvorsen made a shock departure from Fearnley Securities, where he was chief executive.
Halvorsen is viewed as a key contributor in its drive for growth, both in relation to ADS Crude Carriers and ADS.
