Hunter Group Signs Charter for Eco-Design VLCC
Norwegian shipowner Hunter Group has entered into a three-year back-to-back charterparty for an eco-design and scrubber fitted Very Large Crude Carrier (VLCC) with an internationally renowned counterparty.
Delivery of the 2016-built vessel is expected to take place during March/April 2024.
The company will charter the vessel in at a fixed rate of $51,000 per day, before subsequently chartering the vessel out on a floating index-linked spot rate contract.
"This agreement is yet another strong example of our ability to execute on our strategy in order to capitalize on the dislocation between time-charter rates, ship values and the expected strong rate environment. We believe these transactions will provide significant cashflow and value creation for Hunter Group and its shareholders over the coming years," says Erik Frydendal, CEO of Hunter Group ASA.
When the vessel is delivered, the company will have two eco-design and scrubber fitted VLCCs on similar three-year back-to-back charterparties.
"We will continue to monitor the tanker markets, hunting for more accretive opportunities. The order book for newbuild VLCCs is at a 30-year low, oil demand is growing, a substantial portion of the fleet is approaching retirement age and the number of vessels that can be delivered in the next three years is limited by shipyards being fully booked and focusing on higher margin segments," added Frydendal.
The index-linked spot rate, which on 16 January 2024 was approximately $56,000 per day, is based on the recognized VLCC benchmark TD3C and enables the company to capture every daily VLCC spot market movement with maximum utilization.
