Hafnia, the product tanker arm of Singapore-based BW Group, has sold a 14-year-old LR1 ship amid fleet renewal efforts.
Brokers reported that the company recently sold the 75,000-dwt Hafnia Europe (built 2006) for about $11.3m to unknown interests.
When contacted by TradeWinds, Hafnia said the report was “pretty close to the actuals” but refrained from commenting further.
VesselsValue estimates the Onomichi Dockyard-built ship is worth almost $13.4m.
The lower-than-expected sale price is believed to reflect the vessel's special survey due later this year and that it will need a ballast water treatment system to be installed during dry-docking.
Trading volume in the secondhand tanker market has been thin amid market uncertainty in recent weeks.
While asset prices appear to be bottoming out in some tanker segments, freight markets remain volatile due to an uneven recovery in oil consumption during the Covid-19 pandemic.
“It is possible to see that the logistical operation of manufacturing and distributing vaccines is taking time and for as long as this situation persists, the demand for clean products and crude oil will be affected,” brokerage BRS said in a research report.
“Overall post-Covid adjustments will likely only accelerate from mid-2021 onwards. Therefore, owners will need to be patient and wait for global oil demand to fully recover.”
Getting rid of old tonnage
Oslo-listed Hafnia has stated it may sell aged vessels so there can be room for more eco and dual-fuel product tankers.
The company said fleet renewal will be pursued either through charters, newbuildings, secondhand deals, or mergers and acquisitions.
Hafnia has already acquired a 50% stake in two LR2 dual-fuel vessels on long-term charters to Total.
In the third quarter of last year, the company sold the 75,000-dwt Hafnia America (built 2006) for $11.6m.
The ship was acquired by Athens-based Paradise Gas Carriers, a joint venture of Greek shipowner Constantinos Tsakiris and the Vasilopoulos family set up in 2013.
“We have a constant focus on trying to optimise on the fleet” based on business requirements and the age profile, Hafnia chief executive Mikael Skov said in a conference call in November.
“[We] always focus on keeping a modern fleet for Hafnia.”
According to the company website, Hafnia still owns three MRs and two LR1s with an average age of 17 years, one 14-year-old LR1, and four MRs and six LR1s aged 13 years following the latest sale.
