MOL is on track to sell a 14-year-old MR tanker as the Tokyo-listed shipping giant continues to reduce its exposure to the product sector.
According to brokers, the 45,700-dwt Pearl Express (build 2004) is going to Middle Eastern interests for $9.5m.
A source close to the matter told TradeWinds the sale is still being negotiated, but the Japanese shipping conglomerate declined to comment.
MOL has been shedding its product tanker tonnage in recent quarters, having stated it would focus on businesses that can bring stable returns on a long-term basis.
In its latest management plan published in April, the company said it aimed to reduce the size of its product tanker fleet as it deemed the sector “less specialised”, with volatile earnings.
Company reports showed its fleet was composed of 35 product tankers, totalling 2.09 million dwt as of 30 June, compared with 40 units totalling 2.41 million dwt a year ago.
Signs of recovery
News of the MOL sale comes as asset players look for signs of recovery in the depressed sector.
If the sale goes ahead, the price would be higher than the $7.92m estimated by VesselsValue, who predict its value would strengthen in April to December 2019.
But a similar product tanker, the 46,101-dwt Endeavour (built 2004), sold for $9m in June, according to Clarksons.
While spot earnings for product tankers have often dipped below operating expenses this year, some market players remain confident the sector will eventually recover with firming supply-demand fundamentals.
