Concordia sale of three P-MAX vessels

Sep 16 2022

In a strong tonnage market, Concordia Maritime has entered into an agreement for the sale of the three product tankers, Stena Primorsk, Stena Performance and Stena Provence, all built in 2006 and of 65,200 dwt. The sale is expected to have a positive liquidity effect of approximately USD 30 million. The surplus will be used for repayment of loans.

The buyer is based in Europe and delivery is expected to take place during the fourth quarter of 2022. The agreed price is significantly above the market valuations made mid 2022.

Second-hand prices for product tankers have risen sharply in the past six months as the freight market has soared. Tonnage older than 10 years has risen the most in percentage terms. Since the end of March 2022, benchmark prices for a 15-year-old MR vessel (47,000 dwt) have risen by around 70 percent. 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.

"The sale of the vessels is made primarily to take advantage of the increased ship valuations. We are now seeing a massive interest in second-hand tonnage. 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," says Erik Lewenhaupt, CEO of Concordia Maritime.

In accordance with existing bank agreement, the surplus from the sale will be used for accelerated repayment of loans and thereby strengthening the company financially.


Previous: Poten’s Opinion : Changing Tanker Trades Down Under

Next: Exxon Valdez Capt. Joseph Hazelwood dies at 75

Related News

Seafarer satisfaction “lowest in 8 years”

(Apr 29 2022)

From COVID to the Ukraine conflict and contractual concerns, global issues have massively impacted seafarer welfare and morale.

CSM and MHSS unite to support seafarers impacted by war in Ukraine

(Apr 21 2022)

Columbia Shipmanagement, together with its owning company and its clients, have raised an unprecedented €1.4 million and assembled a team of 320 psychologists, mostly from Ukraine, to aid traumatised families of seafarers who have been impacted by th...

Seafarer lives don’t need to be risked during lifeboat drills

(Apr 21 2022)

Seafarers are dying needlessly in lifeboat accidents when maritime legislation doesn’t actually require vessels to be manned during drills.

Body of missing crew member from exploding tanker in Thailand found

(Mar 17 2022)

The missing crew member from the “Smooth Sea 2” oil tanker, which suffered an on board explosion and fire while moored at the IRPC pier in Samut Prakan province, has been found dead, while at least 200 nearby houses have been affected.

Crew on gas tanker seek help after 13 months at sea

(Mar 10 2022)

Five crewmen of a liquefied petroleum gas (LPG) tanker were brought ashore by the navy and labour officials after one of them requested help, saying he had been 13 months at sea without shore leave.

Aug-Sept 2022

MEPC78 and tankers - AET - ESG reporting - Tanker Operator Athens report: SIRE 2.0 and seafarer shortage - electric propulsion on tankers