Brazil’s Petrobras has reportedly sold another tanker for scrap in its continued efforts to clear out old tonnage.
Brokers said the 153,000-dwt Ataulfo Alves (built 2000) was sold at $430 per ldt, or nearly $10m, on an "as-is" basis in Indonesia.
Controlled by Petrobras shipping arm Transpetro, the Hyundai Heavy Industries-built shuttle tanker has a demolition value of $9.95m, according to VesselsValue’s estimate.
Petrobras, Brazil’s national oil company, has sold more than a dozen tankers for demolition via auctions in recent months.
The outfit was previously reported to have sold the 153,000-dwt Cartola (built 2000) at $388 per ldt in late November.
Andre Chiarini, Petrobras’ trading and logistics chief, said in a December conference that his company planned to remove a total of 17 tankers from its fleet.
“If necessary, we will look for new ships or chartered-in ships. It depends on our plans that are coming later on," Chiarini said then.
In an emailed statement to TradeWinds, Transpetro confirmed the sale but added that the deal allows the buyer to either scrap or operate the ship. It did not name the new owner.
As per corporate policy, the ships sold by Transpetetro recently need to be recycled by ship breakers certified under the Hong Kong Convention, the statement said.
Changing market dynamics
The reported sale comes as demolition rates continue to strengthen and secondhand prices weaken.
Among other tanker deals, Seven Islands Shipping was said to have sold the 147,000-dwt Crimson (built 1998) to Chinese interests for $11.5m. The Indian shipowner did not return an email seeking confirmation.
Built by Samsung Heavy Industries, the suezmax is expected to remain trading, as its next special survey is due in 2023.
“The secondhand market is pretty bad and prices are softening. But there is still demand for vessels for further trading if their special surveys are not imminent,” a broker said.
Old ships are often trading at a discount of $2m or more before their special surveys in the secondhand market, as their buyers need to invest in ballast water treatment systems if they want to continue operating the vessels.
But demolition rates have risen by nearly 50% since July, with healthy demand from ship breakers due to a steel shortage.
This might have prompted some owners — including Eurotankers — to send their ships to scrapyards amid weak charter rates recently.
“It appears to be only a matter of time before activity picks up, with current scrap price levels likely to become attractive for owners as they increase relative to secondhand rates,” Clarksons Research said in a note.
