Formosa Plastics Marine Corp (FPMC) has put another two product tankers on the sales block as the Taiwanese owner continues its selling spree amid fleet renewal efforts, according to industry sources.
TradeWinds understands that FPMC, part of Formosa Plastics Group (FPG), is looking for buyers for the 74,862-dwt FPMC P Eagle and FPMC P Fortune (both built 2009) after selling three similar vessels.
No bidding deadline
“The deadline [for submission of bids] is not fixed yet. They can do April or May delivery,” said a market source dealing with FPMC.
The combined value of the two STX Offshore & Shipbuilding-constructed LR1s is estimated by VesselsValue to be $39.62m.
According to the valuation platform, the LR1 tankers FPMC has sold are the 70,426-dwt FPMC P Alpine (built 2004) and Formosa Falcon (built 2005) and 74,862-dwt FPMC P Glory (built 2009).
The MRs are the 45,672-dwt Formosa Sixteen (built 2007) and 46,872-dwt FPMC 17 (built 2009).
The feeder boxships sold are the 1,118-teu Formosa Container No 5 (built 2006), FPMC Container 9 and FPMC Container 10 (both built 2009).
All the vessels have been sold since September.
The FPMC P Alpine and Formosa Falcon reportedly went to Winson Oil for nearly $16.4m enbloc, although some said the deal might have been completed at $14m. Winson Oil did not comment.
The FPMC P Glory has emerged in the fleet of Greece's Centrofin Management under the name Apanemo.
Purchase by newcomer
TradeWinds understands the buyer of the Formosa Sixteen is Greece's Monte Nero Maritime, a company that set up shop in Athens last year. The vessel was said to have been sold for $13.5m, although several brokers reported it fetched $8m.
The Qingshan Shipyard-built sisterships FPMC Container 9 and FPMC Container 10 were sold to Contships Management at about $6.5m each last October. They have been renamed Contship Era and Contship Fox.
In December, Contships also emerged as the buyer of the Formosa Container No 5, which was renamed Contship Don.
A Formosa group spokesman confirmed that FPMC is selling some ships but was unable to provide further details.
“FPMC is selling some ships approaching the age of 10 to15 years as they become a bit too old for the company. This is mainly for fleet renewal,” the spokesman said.
According to Clarksons, FPMC has an orderbook of six 48,800-dwt product tankers due for delivery from Guangzhou Shipyard International in 2019 and 2020.
IMO 2020 concern
FPMC, which has a diversified fleet of about 60 ships, built much of its shipping capacity betweeen 2000 and 2010, partly to meet the group's needs.
FPG’s Mailiao complex, comprising oil-refining unit Formosa Petrochemical Corp and coal-fired power generator Mai-Liao Power Corp, came online in phases in the late 1990s and 2000s.
However, the company is concerned about the fuel performance of its vessels with IMO 2020 set to push up bunker costs. Formosa Petrochemical has not been selling many oil products on a cost-and-freight basis, which means less-than-expected vessel needs for FPMC.
“FPMC is adjusting its business model [with the vessel sales],” the spokesman added.
