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Brightoil ditches plan to sell 15 tankers as VLCC market improves

Energy logistics and bunker supply firm Brightoil Petroleum has ditched an earlier announced plan to sell 15 oil tankers in view of the recent upturn in the VLCC market.

“The company notes that since early October this year and up to current date, the VLCC sector is experiencing a strong up-going market,” Brightoil stated.

It mentioned that the Baltic Tanker Index from Arabian Gulf to China has reached $4.26m equivalent to TCE $54,000 per day, compared to that of the first quarter of 2018 with an average of TCE $18,294 per day and the second quarter with an average of TCE $14,354 per day.

“The group believes that the strong market trend will continue in 2019 and wants to continue pursuing the shipping business and maintains stable cash income for the group,” Brightoil said.

Read more: Petrolimex seeks to wind up Brightoil’s Singapore unit

Hong Kong-listed Brightoil, whose shares have been suspended from trading since October last year, announced in July this year a plan to sell its Zhoushan Oil Storage and Terminal Facilities and 15 tankers including VLCC, aframax and bunker tanker. These intended sales were meant to bolster its financial strength.

At present, privately-owned Brightoil is working with a Chinese bank to formulate a package of financing and debt optimisation adjustment plans for the company to optimise its debt structure and enhance liquidity.

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