Latvian Shipping, a subsidiary of trading giant Vitol, is said to be selling the remaining two 37,000-dwt product tankers in its owned fleet.
The Riga-based company has tentatively agreed to sell the Kandava and Krisjanis Valdemars — ice-class vessels delivered from Hyundai Mipo Dockyard in 2007 — to European interests at $11.8m each, several brokers report.
There have been rumours that Atlantica Shipping is behind the purchase. However, when contacted by TradeWinds, an official from the Norwegian owner shot down the talk as “wrong information”.
'A good price'
“Compared with the sales of their sisterships, it looks like [Latvian Shipping is getting] a good price for them,” a broker said.
This is a pretty niche market … not many vessels of this size are in the market
A shipbroker source
Last November, Latvian Shipping sold the 37,000-dwt Kazdanga and Kraslava (both built 2007) to Monaco-based Gestion Maritime for $11m each.
“This is a pretty niche market … not many vessels of this size are in the market,” the broker added.
Most of the 35,000-dwt to 40,000-dwt product tankers in operation today were built in the 2000s. After 2010, such MR tankers generally have a capacity of nearly 50,000 dwt.
Asset prices of product tankers have gradually firmed up in recent months as the secondhand market remains active, but quick gains are unlikely because of the large number of vessels seeking buyers, according to some market sources.
If the latest deal goes through, all the vessels in Latvian Shipping’s owned fleet will be 52,000-dwt product tankers, according to databases.
Managed-fleet growth
While Latvian Shipping’s pool of owned vessels shrinks, the company has been taking in ships owned by Vitol and its affiliates under technical management.
The efforts to enlarge Latvian Shipping’s managed fleet come after Vitol delisted it in February 2018, having acquired nearly all of its shares.
Latvian Shipping currently manages 35 crude and product tankers, including its owned fleet and some vessels in which Vitol has interests. Last June, it managed 28 ships.
The company has stated its plans to expand the tally to 40 tankers by 2020, according to the LETA news agency.
Vitol declined to comment on its shipping activity.
