Two prominent tanker players have disposed of more aged tankers in the busy secondhand market while welcoming younger tonnage.
Market sources said Greece’s NGM Energy sold the 150,000-dwt suezmaxes A Melody and A Symphony (built 2001) for almost $14.8m each to Asian interests.
The price tag was deemed highly favourable to the Moundreas family-controlled company, which bought the sisterships from DS Tankers in April 2019 for close to $12m each.
“Asians are lapping up everything that floats,” one shipping player said.
Riding on unabated buying interest, mostly from Asia, NGM has been divesting vintage tanker assets in recent months.
TradeWinds reported that since October the company has agreed to sell the 319,000-dwt Perfect (built 2003), the 309,200-dwt VLCC Voyager I (renamed Phoenix X, built 2003), the 299,000-dwt Commodore (renamed Kin A, built 2000), the 159,900-dwt suezmax Lion King (renamed Akin I, built 2000), the 105,500-dwt LR2 Amalfi (renamed Lidinia, built 2003), and the 70,400-dwt panamax Promoter (renamed Oreo, built 2002).
NGM separately bought the 105,300-dwt aframax Pamisos (renamed Baroness, built 2011) in December and a pair of 10-year-old suezmax sisterships from lenders of Greek peer Stamatis Molaris in February.
One of the suezmaxes, the 158,600-dwt Suez Fuzeyya (built 2011), was almost immediately flipped to Ridgebury Tankers and renamed Ridgebury Elizabeth B.
Aframax sales
Meanwhile, Idan Ofer’s Eastern Pacific Shipping has reportedly sold the 106,000-dwt Sulu Sea (built 2005) for $14m and the Celtic Sea (built 2003) for $12m to Hong Kong interests.
Constructed by Sumitomo Heavy Industries, the aframaxes are fitted with scrubbers and ballast water treatment systems.
VesselsValue estimates the younger ship is worth $12.9m and the older $10.5m.
The Singapore-based outfit has been shedding some of its oldest aframax tankers as it focuses on a young, eco-friendly fleet, TradeWinds understands.
In March, brokers said Eastern Pacific had sold the scrubber-fitted, 105,000-dwt Nectar Sea and Koro Sea (both built 2008).
The Sumitomo-built Nectar Sea was reportedly sold for $16m, and the Namura Shipbuilding-constructed Koro Sea for $16.5m.
Meanwhile, Eastern Pacific is receiving four LR2s from New Times Shipbuilding in 2021. Two of them, the 110,000-dwt Atlantic Blue and Atlantic Gold, were delivered earlier this year.
The company also recently bought the 50,300-dwt MR Overseas Gulf Coast (built 2019) from Overseas Shipholding Group.
Buoyant activity
Secondhand tanker prices have been resilient amid healthy activity in recent months despite weak spot earnings.
But opinions remain mixed on whether asset values will pick up soon, given an uncertain demand picture during the Covid-19 pandemic.
Optimists expect tanker values to be supported by a forecast rise in spot rates from summer, firm demolition rates, and strong buying appetite from players involved in risky trades.
But others point to downward pressure from low charter rates as daily earnings in most segments are still below break-even levels for most shipowners.
“Crude tanker markets are really poor now. Even the small rally we had one month ago has fizzled and rates are falling again,” one of the more pessimistic players said.
Ireng Ang contributed to the article.
