GMS has splashed nearly $20m on two product tankers, but there is no word on its plans for them.
According to shipbroking giant Clarksons, Dubai-based GMS bought the 51,274-dwt PTI Amazon and 51,218-dwt PTI Rhine (both built 2007) for $9.8m each. As a cash buyer of ships for demolition, the company typically, but not always, buys ships to recycle.
Chief executive Anil Sharma did not respond to a request for comment from TradeWinds on GMS' plans for the ships, which were bought at a discount on their estimated market value but above scrap value assessments.
VesselsValue suggested the selling price for each ship was $9.7m.
The valuation platform estimates the PTI Amazon is worth $11.9m and the PTI Rhine is worth $11.8m, while its estimated demolition value is $6.5m each.
Scrapping has picked up in recent weeks amid low rates and high asset prices.
In its weekly report, Clarksons reported that the 47,262-dwt D&K I (built 1998) was sold for $640 per ldt, or $5.9m, and the 37,808-dwt Banyan Pride (built 2002) for $595 per ldt, or $5.7m.
Both are product tankers.
In a handful of instances in recent years, GMS has flipped ships for further trading.
In April 2020, as tanker rates skyrocketed amid a depressed oil price, GMS bought the 300,400-dwt Ghawar (built 1996) from Bahri for $19.5m, then sold it to a Singapore company for use as floating storage.
The sale price was reported to be $21m.
In 2019, GMS bought a bulker from H-Line and sold it to a private Chinese owner for an undisclosed price. That was after it had bought two containerships for $6m before moving them for further trading.
In those cases, rates were rising as scrap prices were on the decline.
As it stands, tanker rates are low but improving, with many in the market expecting further jumps alongside increasing oil demand.
Clarksons' database lists the PTI Amazon and PTI Rhine as the oldest vessels in the fleet of Hong Kong-based Parakou Shipping, which has been contacted for comment.
The PTI Amazon's registered owner is Triple H No 2 and the PTI Rhine's is Triple H No 1. Both companies share a Seoul address with Hyundai Glovis, the ships' commercial manager.
