International Seaways Updates on VLCC Acquisition and MR Vessel Sales

Maritime Activity Reports, Inc.

March 8, 2018

Image: International Seaways

Image: International Seaways

 International Seaways, one of the largest tanker companies worldwide, said it acquired a 2010-built VLCC for $53 million, the Seaways Raffles, which commenced trading in the Tankers International pool, during the fourth quarter of 2017.

During the fourth quarter, the company, which provides energy transportation services for crude oil and petroleum products in International Flag markets,  sold a 2004-built MR, which was delivered to buyers in November 2017. 
The Company also sold a 2002-built MR, which delivered to buyers in January 2018, and a 2004-built MR, which delivered to buyers in February 2018. Net proceeds received from the two ships delivered to buyers in 2018 totaled $17.9 million.
Additionally, the Alexandros II, a chartered-in vessel, was redelivered to her head owners during the fourth quarter.
"During the fourth quarter, the Company entered into a binding letter of intent to acquire the holding companies for six 300,000 DWT VLCCs with an average age of 1.7 years from Euronav NV  in connection with the closing of Euronav’s announced acquisition of Gener8 Maritime, Inc. (GNRT)," said a statement.
The purchase price for the six-vessel acquisition is $434 million, inclusive of assumed debt. The six vessels that INSW has agreed to acquire include five 2016-built VLCCs and one 2015-built VLCC, each constructed at Shanghai Waigaoqiao Shipbuilding Co. 
In connection with the transaction, the Company intends to assume the debt currently secured by the acquired vessels, with an outstanding balance of $311 million (as of March 31, 2018), maturing between 2027 and 2028, and carrying a fixed annual interest rate of LIBOR plus 2.0%.
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