Odfjell Nets Gain of $18m on Ship Sale

Odfjell has entered into an agreement to sell MT Bow Santos (19, 997 dwt, stainless steel, built 2004 in Japan) with a net gain of $18m. The vessel will be delivered to its new owner, Star Tankers AS (a company owned by Torkel Alendal) in December 2008.

Simultaneously Odfjell has entered into a bareboat charter with the new owner for a period of 5 years with options to purchase the vessel. Odfjell Ship Management will be the technical and crewing manager for the vessel.

Odfjell has been working on ways to strengthen the equity ever since the damaging Norwegian retroactive tax was imposed last year. This process has become more challenging due to the financial crises. Despite the difficult markets, we are pleased to have arranged the sale of MT Bow Santos, says Terje Storeng, President/CEO of Odfjell SE.