Arne Fredly’s Hunter Group struck an upbeat note on both the tanker market and its financial progress as it closes in on the sale of two of its eight VLCC newbuildings.
Hunter revealed last week it was set to sell two of the tankers under construction at DSME for $98m each, which would be the highest figure paid for such ships in half a decade.
In its first quarter report today Hunter said negotiations to finalize the sale were at an advanced stage.
The VLCC newcomer, which will place its tankers under the management of compatriot OSM, has debt financing of $420m in the bag for the newbuilds and raised over $79m from a private placement last week.
Should the sale of the two tankers close Hunter said it would not require any further financing on its remaining fleet of six VLCCs.
The company will take delivery of its first four ships in September and October this year, having last week moved up the arrival dates for the series without disclosing specific details.
While analysts note Hunter’s first quarter results are a non-event with just a modest profit from advisory fees, it did predict a strong market for crude tankers in the second half of the year.
The return of refineries after maintenance, the expected ramping up of distillate output ahead of IMO 2020 and the potential comeback of Opec+ barrels were all noted as supportive factors.
“We believe the supply demand balance will improve significantly in favour of owners as newbuilding deliveries are expected to slow significantly, while a substantial number of vessels will be taken out of trading to install scrubbers,” Hunter said.
“All in all, everything is shipshape and Bristol fashion,” it concluded in its outlook.
