China’s EGPN has turned a profit on the sale of a VLCC that it bought just six months ago.
Zhang Yun, director of EGPN, confirmed to TradeWinds that his company has sold the 305,700-dwt Eastern Juniper (Ex-KHK Vision, built 2007).
“The Eastern Juniper was trading Middle East Gulf to Indian routes before we decided to sell [the tanker] for profit-taking,” said Zhang.
He did not disclose the sale price of the DSME-built crude carrier or the buyer’s identity. Clarksons has reported that the VLCC was sold to Middle Eastern interests for $36.5m.
EGPN is believed to have made a profit of $5.5m from Eastern Juniper as it was reported to have paid $31m to Hong Kong shipowner Tai Chong Cheang Steamship for the ship.
Zhang earlier said the company bought the VLCC as it believed a rebound in the wet trade was imminent due to the recovery in oil consumption. It was also banking on the disruption to global supply chains, which affected the container ship and bulker markets, to cascade to tankers.
Meanwhile, EGPN has bumped up its fleet with three chemical tankers and two supramax bulk carriers.
Zhang said his company has bought the 57,000-dwt bulkers — Mandarin Trader (built 2011) and Mandarin Crown (built 2012).
He did not disclose the purchase price of the supramax bulkers but online database VesselsValue lists the duo as being owned by Singapore’s Dasin Shipping. The market value of the younger bulker is $17.89m while the current value of Mandarin Trader is $17.41m.
Zhang said EGPN has also acquired the 13,499-dwt Chinese-built chemical tankers Ocean Eel (built 2019), Ocean Cod and Ocean Bass (both built in 2018). He did not disclose the purchase price of the trio, but VesselsValue lists the market value of Ocean Eel as $15.06m, Ocean Cod at $14.97m and Ocean Bass at $14.82m.
Zhang added that he expects vessel assets values to continue strengthening amid global inflationary pressures and a growing appetite for buying ships, especially those in smaller vessel segment.
EGPN, which currently owns one chemical carrier — the 12,200-dwt Eastern Iris (ex-Crane Argo, built 2010) and one MR tanker, the 50,400-dwt Eastern Kalmia (ex-Ocean Pluto, built 2007) - will be putting the three new chemical tankers into the Maersk and Heidmar pools.
The tankers were previously owned by Nan Jin Maritime, an SPV under Hin Leong-linked Xihe Group. EGPN’s Eastern Kalmia was also formerly owned by Xihe. It was reported to have bought the product carrier at the end of last year for $9.9m.
Headquartered in Beijing, EGPN was set up in 2014 through a joint venture between Zhang’s Great Pacific Navigation and nickel ore trader Eastern Ocean Transportation, owned by two of his former classmates, Li Qing and Wu Qing Ming.
EGPN operates more than 30 vessels. The company owns around 10 ships including one capesize bulker. It is also due to take delivery of two supramax bulk carriers from Chengxi Shipyard this year and in 2023.
