Norway's Viken Shipping is seeing success with its strategy to concentrate putting its ships on long-term charter to oil companies.
The Bergen-based tanker owner has reported a pre-tax of $24.4m for 2019, an improvement on a $22.7m profit in 2018. The privately-owned company said its operating revenue increased from $175m to $196m.
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Viken operates a fleet of 20 crude, product and chemical tankers. Its deals with oil companies are often structured with a rate floor and a profit-share element. The charters are typically for five to seven years in duration.
Through joint venture company Viken MOL, where Japan’s Mitsui and Co is a 50% partner, Viken controls five shuttle tankers that are on long-term charter to Transpetro of Brazil.
The company has avoided ordering new tankers unless such long-term employment is in place.
Viken Shipping, which also is involved in joint venture Viken Crude with Norway's Frederik Wilhelm Mohn, was set up by Tom Chr Steckmest in 1993. He and his family own the majority of the shares, while board chairman Hans Olav Lindal owns around 17%.
Together with UK-based partner Nigel Hill, Viken also owns the shipowning company Woodstreet Shipholding, which buys and operates distressed assets.
In March, Viken and its partners bought the 112,000-dw tanker Aquabliss (built 2019), reportedly for $56m, and fixed it for five years to Gunvor's Clearlake Shipping for at least five years. This ship is being renamed Aurviken.
The tanker owner is also in the process of selling the 12,800-dwt tanker Askviken (built 2005). Brokers said this vessel is going to a Middle East-based buyer for $3.5m.
