Details have begun to emerge on the outcome of the auction of the last Xihe Holdings-owned VLCC, which was sold via a judicial auction in early January.
The result of the sealed tender auction conducted in Singapore shows that despite no sign of improvement in the low rates being earned by large tankers — some older non-scrubber units are said to be losing money — buying interest still remains strong.
Officially there has been no notification on the auction result auction for the 318,600-dwt crude carrier Wu Yi San (built 2012), but numerous brokers have been reporting that the ship went for $38.5m.
This price was described by market observers as being strong for a long laid-up VLCC for which statutory annual class surveys, machinery maintenance and overhauls are overdue.
At the time the vessel was auctioned, it was estimated to be worth $46m, according to a snapshot valuation by VesselsValue. MSI Horizon puts its average value for the current quarter in a range of between $40.4m and $47.9m.
The Wu Yi San's buyer remains unknown, although market sources who were following the auction process reported that a number of the "Big Name" tanker owners who had previously acquired Xihe-owned VLCCs, along with other parties from Greece and China had inspected the vessel.
Greek owners have been especially prolific buyers of VLCC tonnage recently, but market sources told TradeWinds that there has been quite a lot of buying interest for the Greek-owned, 318,300-dwt Sea Lynx (built 2004).
Some brokers report that the ship's owner, Pantheon Tankers, has already agreed to sell the Hyundai Samho-built vessel for about $32m.
TradeWinds, however, understands that no deal has been concluded yet and that potential sale discussions are still ongoing. As in the case of other VLCCs sold lately, high scrap values are limiting the downside for suitors who seek to acquire it for further trading.
Other factors speaking for the Sea Lynx are that it is equipped with a ballast water treatment system and that it has been owned for several years by a company known for maintaining its vessels well.
