The company has sold three of its P-MAX tankers, which are wider MR tankers designed to work in shallow waters.
When the container market was at its height and tanker markets were in the doldrums, Concordia looked into converting its P-MAX vessels in to 2,110 teu container vessels. The project was subsequently abandoned as tanker rates began their own recovery and the outlook for the container sector cooled.
Stena Primorsk, Stena Performance and Stena Provence, will all be delivered to their new European owner in Q4 for prices “significantly above” market valuations made in mid-2022, said Concordia. The trio are all 65,200 dwt vessels built in 2006, and their sales will boost the company’s liquidity by $30m, it said.
The sale comes as the tanker market looks to be in the early stages of recovery, which has been reflected in asset prices. “Since the end of March 2022, benchmark prices for a 15-year-old MR vessel (47,000 dwt) have risen by around 70 %. Behind the development is a strong tanker market as a result of, among other things, changed trading patterns due to the war in Ukraine and a high demand for ships,” said Concordia.
The sale of its older vessels leaves Concordia Maritime’s fleet at four ships built between 2009 and 2011. The company plans to use the proceeds from the sale for early loan repayment.
"The tanker market is cyclical and our business model includes both purchases and sales of vessels. Here, timing is absolutely crucial. Right now we are getting paid very well for our oldest ships," said Erik Lewenhaupt, CEO of Concordia Maritime.
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