Hunter Group shareholders will be receiving a one-off payout after the Norwegian company confirmed a deal to sell two of its modern VLCCs.
The Oslo-listed shipowner has agreed to dispose of the 300,000-dwt, scrubber-fitted Hunter Laga and Hunter Saga (both built 2019) for a combined $168.4m, or $84.2m each.
The confirmation comes nearly three weeks after TradeWinds reported a sale had been arranged on subjects at $84m to state-run energy company Abu Dhabi National Oil.
Hunter has not named a buyer, but said the deal will complete in December.
Cash to be shared out
"Upon completion of the transaction, the board of directors intends to propose a distribution of excess capital to the shareholders of Hunter Group," the company said on Thursday.
Hunter has been contacted for further information.
VesselsValue assesses the pair as worth a little over $81m each.
Brokers had described the $84m price tag as "cheap", however, pointing to a VLCC newbuilding which sold in August for $90m.
The Hunter Laga was fixed for six months in March at $80,000 per day to a trading house.
Norwegian investment bank Fearnley Securities said the sales would release more than $60m in equity after debt of $52.5m per vessel is repaid.
This will leave a cash balance in excess of $100m for 2020, or nearly 50% of the current market cap.
Fearnley had tipped the proceeds to be distributed or used for share repurchases to reduce the net asset value discount.
The investment bank estimates a steel value in Hunter of NOK 4 per share, against a trading price of NOK 3.28 on Thursday.
"We see excess cash of circa NOK 1 per share available for distribution," Fearnley added.
"Both vessels are 2019 vintages, turning two years in a few months’ time. Compared to the delivered cost of $85m, we estimate that the vessels have sailed in circa $100m each including sales price," analysts Espen Landmark Fjermestad, Peder Nicolai Jarlsby and Ulrik Mannhart said.
Five VLCCs left
The disposals leave Hunter with five modern VLCCs. The company sold the first of its original fleet of eight tankers to SK Shipping last year for $98m.
On Monday, TradeWinds reported that the company fixed another VLCC into 2021 to "de-risk" its cash flow.
The Arne Fredly-backed shipowner said the 300,000-dwt Hunter Idun (built 2020) has been chartered out over four to six months at $30,000 per day.
The company added that 80% of available vessel days for the second half of this year have been booked at $56,000 per day.
Adnoc's shipping Adnoc Logistics and Services has been tendering for modern VLCC tonnage for some time
The company started the process late last year in what was then a rising market, but the business stalled before being revived this year.
