A reported VLCC sale by Evangelos Marinakis shows tanker asset prices remain firm amid healthy earnings prospects, according to market participants.
Brokers reported that the scrubber-fitted, 320,925-dwt Miltiadis Junior (built 2014) was sold for between $69m and $70m.
No information is available on the buyer of the Liberia-flagged, Shanghai Waigaoqiao Shipbuilding-constructed vessel.
The Miltiadis Junior was arrested in South Korea for more than two months in 2018 during a legal fight between SK Shipping and Capital Ship Management, the Marinakis-controlled firm that owns and operates the vessel commercially.
Piraeus-based Capital Ship Management did not immediately respond to emails seeking confirmation of the sale and further details.
“This is a strong price when compared to currently prevailing levels, and especially so when compared to the five [South] Korean-built VLCCs which were sold by Brightoil last year,” researchers at Clarksons said in a note.
Brightoil, a distressed trading house based in Hong Kong, saw its entire fleet of VLCCs, aframaxes and bunkering tankers arrested and auctioned in several jurisdictions last year.
The 319,800-dwt Brightoil Glory, 319,900-dwt Brightoil Gravity and 319,700-dwt Brightoil Galaxy (all built 2012) and the 319,800-dwt Brightoil Gem and Brightoil Grace (both built 2013) were sold to multiple buyers for $294m in total, according to VesselsValue.
‘Fair market value’
All the vessels were built by Hyundai Heavy Industries. They were not fitted with exhaust gas cleaning technology when auctioned.
“The ships were of a similar age to the Miltiadis Junior and were auctioned for pricing that averaged around $10m less per vessel,” Clarksons said.
A London broker described the sale price of the Miltiadis Junior as “a fair market value”, adding: “Considering it is Chinese-built, the ship seemed sold pretty well.”
The sale-and-purchase market for VLCCs has stayed active in recent weeks, despite a sharp fall in oil demand because of the coronavirus outbreak.
Having already been unseasonably strong, spot earnings VLCCs are receiving a further boost from increasing Middle Eastern crude exports and floating storage demand, according to analysts.
The development is expected to support aged ships suitable for storing oil at sea, partly offsetting the downward pressure from falling demolition rates this year.
The 300,150-dwt Dewi Maeswara (built 1998) was last week reported to be sold for $19m but the information cannot be immediately verified.
Some brokers reported that Ridgebury Tankers sold the 306,300-dwt Ridgebury Purpose (built 2000) for $21m, but TradeWinds understands that the ship remains with the Connecticut-based owner.
In January, Ridgebury Tankers sold the 306,397-dwt Ridgebury Pride (built 2000) for about $25.3m.
