New public VLCC platforms created in Norway to surf the anticipated tanker market upcycle fuelled by IMO 2020 are well in the money on their newbuilding investments, according to data provided to TradeWinds.
Arne Fredly’s Hunter Group looks set to snare its first profit on its project, with the pending sale of two tankers from its orderbook at the highest price paid for such ships in half a decade.
However, it is fellow newcomer Okeanis Eco Tankers — backed by the Alafouzos family — that is sitting on the largest paper profit on VLCCs ordered since the start of 2017, according to figures from VesselsValue.
The Alafouzos family company has the largest book gains among all shipowners to have ordered new VLCCs since the start of 2017, ahead of fellow Greek owner John Angelicoussis, the figures suggest.
Okeanis listed on Oslo’s Merkur Market last summer with a fleet of eight VLCC newbuildings under construction at Hyundai Heavy Industries.
Rise on contract price
The initial ships in the series — the family’s first move in the VLCC market for more than a decade — were inked in late 2017 and the full eight were in the HHI book by the following April, TradeWinds reported at the time.
VesselsValue’s numbers show Okeanis placed the VLCCs for an aggregate of $654m. Today, it values the tankers — four of which have lease financing with Oslo-listed Ocean Yield — at $775m, marking a $121m rise from the contract price in South Korea, the data suggests.
The potential huge profits in the works for owners who have ordered VLCCs in the last 18 months was highlighted in the past couple of weeks after Hunter announced it was in the closing stages of selling two of its tankers for $98m each.
Should the sale close, and discussions are described as advanced, the figure would be the highest paid for a VLCC resale since early 2015, when Peter Georgiopoulos' General Maritime merged with Navig8 Crude Tankers.
While some were surprised by the potential windfall in store for Hunter, reported VLCC time charter activity is seen as supporting the upswing in values, others suggest.
Major profit
Angelicoussis, who is not known as an asset player given his preference for trading ships from the cradle to the grave, is still sitting on a major profit on the seven VLCCs that he has ordered at DSME since 2017, VesselsValue calculates. The seven ships were contracted for a combined $560m but are worth $109m more today, according to VesselsValue’s calculations.
Its analysts place Sinokor in third place, followed by China Merchants Energy Shipping, which is seen as $71m to the good on its six VLCCs contracted in the last year and a half.
Hunter stands fifth overall, according to the VesselsValue numbers, with eight VLCCs seen as $71m in credit right now.
Hyundai Merchant Marine is ranked sixth, with Hunter’s eco VLCC pool partner Hartree Partners next in line. VesselsValue suggests the four Hartree ships are today worth $55m more than their contract price.
Continuing the Greek presence in the top 10, Lemos family firm Enesel is calculated to be $48m up on its four VLCCs booked since the start of 2017.
Japanese pair Kyoei Tanker and NYK Line complete the top 10, both $46m to the good across three VLCC newbuildings.
