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Friday, July 19, 2024

Concordia Maritime Sells Two Product Tankers

Maritime Activity Reports, Inc.

August 4, 2023

(Photo: Christian Badenfelt / Concordia Maritime)

(Photo: Christian Badenfelt / Concordia Maritime)

Concordia Maritime on Friday announced it has entered into an agreement to sell two of its product tankers. 

The vessels are the 65,200 dwt Stena Progress and the 65,200 dwt Stena Premium, built in 2009 and 2011 respectively.

After repayment of loans and liabilities to related parties, the transaction generates a liquidity supplement of approx. SEK 100 million (approximately US$9.5 million), Concordia Maritime said. The remaining debts are current operating liabilities.

“With the sale, we continue to take advantage of the strong market and the high prices for older vessels. As previously announced, we are working intensively to chart the company’s future direction and business. The work is progressing and we have high hopes of being able to present more information during H2 2023,” said Concordia Maritime CEO Erik Lewenhaupt.

Since 2021, Stena Progress and Stena Premium have been on a five-year charter to Stena Bulk, which in turn has chartered out the vessels on a combination of short and medium-term contracts. On the sale date, both vessels were on contracts that run until autumn/winter 2024. The transaction means that the buyer takes over responsibility for these contracts from Stena Bulk. The sale price is affected by the buyer’s expected earnings for the vessels during the remaining contract period.

After the sale, the Concordia Maritime fleet will consist of one vessel, Stena Polaris, which has been chartered out on a bareboat contract to U.S. Crowley Government Services Inc. since early 2022. Crowley has in turn chartered the vessel to U.S. Military Sealift Command. The contract with Crowley includes extension options until the end of 2026.