Sinotrans Shipping sells VLCC at a loss

The VLCC Yangtze Friendship will be sold at a price of $61.8m to New Enterprise Shipping Company, majority owned by an independent third party and 49% owned by Sinotrans & CSC Holdings, parent firm of Sinotrans Shipping.

The oil tanker is expected to be delivered to the new owner on or around 10 February.

“Since the group is not principally engaged in the business of oil tanker services and does not possess expertise in the operation of oil tankers, the company is of the view that it is in the interests of the company and its shareholders as a whole to enter into the disposal,” Sinotrans Shipping announced.

“The group intends to use the sale proceeds from the disposal for general working capital purposes and for any future acquisition of new vessels when suitable opportunities arise,” it added.

Sinotrans Shipping owns and operates dry bulk vessels and containerships, with a focus on dry bulk vessel chartering.