Norwegian player SKS Tankers Holding (SKS) is heaving its entire LR2 fleet into a new joint venture with ship financier Hayfin Capital Management.
Ten LR2 product tankers previously owned by the Bergen-based company have been transferred to a new structure involving Hayfin's wholly-owned GreenTankers Holding subsidiary, the two outfits said in a joint statement on Friday.
The ships, all sister vessels built between 2010 and 2012 at Hyundai Samho Heavy Industries will be just the “initial fleet” in what both partners intend to be a growing new platform.
"The partnership will benefit both partners at an exciting point in time for the product tanker market," the statement said, citing rapidly recovering oil demand in line with growing economic activity.
The ships will be operated in the SKS Pool. Kristian Gerhard Jebsen Skipsrederi (KGJS), SKS's parent company, will act as the venture’s commercial and corporate manager.
The transaction was concluded on 10 December, the two partners said without revealing any financial details.
The deal "follows KGJS’ tradition of teaming up with partners for key activities," KGJS chief executive Geir Mjelde said.
He added that technological transformation and decarbonisation require "scale and depth of competence".
Decarbonise 'any assets'
Hayfin and SKS have worked together for a long time, according to Andreas Povlsen, Hayfin’s managing director and head of maritime funds.
"This joint venture provides us with exposure to high-quality assets in a market with attractive growth prospects," Povlsen said, adding that the joint venture will have "a clear focus on using all available tools to decarbonize any assets under [its] joint control".
Hayfin invested in more than 65 vessels over the past five years, including tankers, bulkers, LNG carriers and offshore vessels.
Hayfin’s shipping connection was cemented in 2019 through a merger with Breakwater Capital, the alternative finance operation founded by Povlsen.
The fund was known to be investing in smaller product tankers so far this year, picking up the 50,000-dwt GH Parks (ex-MR Pat Brown) and GH Austen (ex-MR Aries, both built 2009), in March for a reported $30m en bloc.
In July, TradeWinds reported about Hayfin’s ambitious growth plans through UK-based Greenheart Management as in-house shipping desk for Hayfin’s maritime funds.
Greenheart’s tanker desk is headed by industry veteran Michael Friis.
