Norway's Hunter Group has 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 deal starts following its current charter that expires at the end of December.
The counterparty has not been disclosed.
"The time charter contributes to a further de-risking of future cash flows and secures time charter coverage into the second quarter of 2021," Oslo-listed Hunter said.
"With four vessels on time charters and three vessels operating in the spot market we believe Hunter Tankers is well positioned going forward."
The company added that 80% of available vessel days for the second half of 2020 have been booked at $56,000 per day.
This compares to $11,000 per day achievable in the spot market from the Middle East to South Korea on Monday.
Charter rates falling
In the summer, Hunter fixed the 300,000-dwt Hunter Frigg, the last of its VLCC newbuildings from Daewoo Shipbuilding & Marine Engineering, for between six and eight months at $40,000 per day.
Last month, the 300,000-dwt Hunter Disen was booked by an unnamed charterer at $38,000 per day for between five and seven months, showing how term numbers are weakening.
Norwegian investment bank Fearnley Securities has a sell recommendation on Hunter and a target price of NOK 3 per share, against NOK 3.24 on Monday.
Three of Hunter's charters extend into 2021 at an average rate of $35,000 per day.
"Given demand uncertainties and volume risk over the coming six to nine months we believe adding coverage makes a lot of sense as it prevents earnings dilution (ie covering operating cost and asset depreciation) and potential cash burn in what we believe could be some challenging months ahead," Fearnley said.
TradeWinds has reported a pair of Hunter VLCCs have been sold on subjects to the shipping interests of state-run energy company Abu Dhabi National Oil.
The 300,000-dwt, scrubber-fitted Hunter Laga and Hunter Saga (both built 2019) have been committed to a sale at $84m each.
Fearnley said it was still awaiting confirmation of the sales, leaving an estimated net asset value in Hunter of NOK 4.20 per share.
"With $52.5m of debt per vessel, the sale would release more than $60m of equity, leaving a 2020 cash balance in excess of $100m or nearly 50% of the current market cap," the investment bank added.
"We believe the net proceeds could be distributed or used for share repurchases in order to reduce the NAV discount."
The Hunter Laga (built 2019) was fixed for six months in March at $80,000 per day to a trading house.
