Concordia Maritime Sells Three Tankers
Sweden-based shipowner Concordia Maritime announced it has sold three product tankers to a European buyer for above-market prices.
The company said Friday that it has entered into an agreement for the sale of the 65,200 dwt vessels Stena Primorsk, Stena Performance and Stena Provence, all built in 2006 at Croatia's Brodosplit Shipyard. The ships are expected to be delivered to their new owner during the fourth quarter of 2022.
"The agreed price is significantly above the market valuations made mid 2022," Concordia said, noting that soaring freight markets have lifted prices for secondhand product tankers in recent months. Tonnage older than 10 years has risen the most in percentage terms, according to Concordia. "Since the end of March 2022, benchmark prices for a 15-year-old MR vessel (47,000 dwt) have risen by around 70%. Behind the development is a strong tanker market as a result of, among other things, changed trading patterns due to the war in Ukraine and a high demand for ships," the company said.
Erik Lewenhaupt, CEO of Concordia Maritime, "The sale of the vessels is made primarily to take advantage of the increased ship valuations. We are now seeing a massive interest in second-hand tonnage. The tanker market is cyclical and our business model includes both purchases and sales of vessels. Here, timing is absolutely crucial. Right now we are getting paid very well for our oldest ships."
The sale is expected to have a positive liquidity effect of approximately $30 million. In accordance with existing bank agreement, the surplus from the sale will be used for accelerated repayment of loans and thereby strengthening the company financially.
After the sale of the three ships, Concordia Maritime's fleet consists of four ships built in 2009-2011.
