News bulletin – tanker shipping

NEWS BULLETIN

TANKER SHIPPING

STEALTHGAS PAYS TO FOCUS

StealthGas has reported 2021 revenues of $150.2m, up 3.6 per cent on the previous year, largely as a result of lower bareboat activity and more exposure to the spot market. After taking an impairment loss of $44.6m, most of which relates to the spin-off of the company’s non-gas tanker activities, StealthGas reported a net loss for the year of $35.1m, compared to net income of $10.2m in 2020.

“Year 2021 has been throughout its course demanding, as it required shipping companies to adapt to the pressures arising from the ongoing Covid-19 pandemic, along with inflationary pressures as an outcome of rising energy prices,” remarks board chairman Michael Jolliffe. “Regrettably, the Russian war outbreak in Ukraine has made our global reality uncertain with considerable effects on humanitarian, geopolitical and economic aspects; LPG trade will not remain unaffected, and we may see direct effects such as changes in trade patterns as well as indirect ones such as further increases in energy prices, and various other costs that may increase such as insurance war risk premiums.

“Our year ended with a profit of $10.2m excluding impairment charges, a decent performance when taking into consideration the large increase in our voyage costs, crew costs related to the Covid-19 pandemic as well expenses for drydocking again due to Covid-19 yard restrictions,” Jolliffe adds. “Going forward we cannot predict our market’s reality especially in such erratic times; however, our sizeable fleet, our market’s strong fundamentals, LPG rates improvement in the fourth quarter of 2021 along with our healthy capital structure are the strong points upon which we will rely, despite any market disturbances we may face.” www.stealthgas.com

VLGCS IN DEMAND

Some of the major operators of very large gas carriers (VLGCs) have taken advantage of strong secondhand values to sell off their older ships. BW LPG, for one, has sold its 2006-built VLGC BW Trader, one of the oldest gas carriers in its fleet. The 78,600-m3 unit was delivered to its new owners in March; BW LPG says it will book a gain of some $2m on the deal.

“This sale is in line with our strategy of seeking to optimise our assets through the cycles and gives further strength to our balance sheet and liquidity position,” says Anders Onarheim, CEO. After the transaction, BW LPG now has a fleet of 39 VLGCs, of which 12 have been retrofitted with dual-fuel engines capable of running on LPG.

Similarly, Avance Gas has agreed the sale of the 2008-built VLGC Providence, its second divestment of an older carrier this year. The sale is part of Avance’s overall strategy to renew and update its fleet and has come at a good time as secondhand values are currently strong: this deal is expected to generate some $24.3m in net cash proceeds and a book profit of $4.8m.

Dorian LPG has completed the previously announced sale of its 2008-built VLGC Captain Nicholas ML. As the ship was debt-free, the transaction has generated cash proceeds of $48.1m.

Dorian also reports that it has arranged sale and bareboat charter deals for two 2015-built VLGCs in its fleet, Cratis and Copernicus, with a Japanese financing counterparty. The transaction has generated $100m, half of which has been used to pay down debt. The nine-year deals include purchase options. www.avancegas.com www.bwlpg.com www.dorianlpg.com

NAVIGATOR EDGES UP

Navigator Holdings has reported annual operating revenue for 2021 of $403.6m, up from $332.5m the year before, with adjusted EBITDA rising by 25 per cent to $155.8m. Both figures have been improved as a result of the acquisition of vessels sailing in the Unigas pool following Navigator’s acquisition of Ultragas, which added $24.1m in revenues for the year as a whole. In addition, average timecharter equivalent rates improved from $21,573 per vessel per day in 2020 to $22,145 in 2021.

Navigator Holdings also notes that its ethylene export terminal at Morgan’s Point, Texas achieved fourth quarter throughput of 241,500 tonnes, compared to 125,300 tonnes in the same period 2020.

Since the end of the year, Navigator has sold its 2000-built 20,000-m3 ethylene carrier Navigator Neptune for $21.0m and its 1999-built 8,600-m3 LPG carrier Happy Bird for $6.1m. navigatorgas.com

TEAM SELLS UP TO MLEP

Maritime Logistics Equity Partners (MLEP), formed this past November by Easterly Asset Management, has emerged as the buyer of Team Tankers’ last three owned chemical tankers. The 24,000-dwt, coated vessels, all built in 2008/9, have now joined Womar Pools, along with MLEP’s four existing stainless steel tankers. They have been renamed Easterly Hawk, Easterly Osprey and Easterly Falcon.

“The new acquisitions show the appeal of our focus on benefitting from the substantial dislocations and opportunities in international shipping markets by acquiring and making available for hire pre-owned chemical tankers,” says Darrell Crate, CEO of MLEP. “We’ve seen that the demand for such tankers has the potential to generate a high level of income for investors and we continue to seek new investment opportunities in the shipping sector.” MLEP has set itself a target of build a fleet of between 15 and 25 tankers. easterlyam.com/maritime-logistics/

EXMAR FIRM IN LPG

Exmar has reported 2021 revenues of $148.2m on an IFRS basis, down from $285.2m in 2020; EBITDA dropped from $177.5m to $51.3m and profit after tax fell from $92.0m to $11.6m. Exmar’s core gas shipping activities performed better, with revenues up 2 per cent at $137.7m and operating EBIT swinging from a 2020 loss of $7.8m to a profit of $26.9m, largely as a result of impairment charges in the prior year.

Revenues improved following the delivery of two VLGC newbuildings employed under timecharter, partially offset by the sale of two older midsize vessels. Exmar notes volatility in the VLGC sector, though its ships in this size band are all covered by timecharters. Elsewhere in the LPG market, rates were stable compared to 2020. LNG shipping rates were high due to geopolitical tensions, Exmar reports. exmar.be

SEATRANS BUILDS FOR THE FUTURE

Seatrans Chemical Tankers has ordered two 12,500-dwt stainless steel chemical tankers from Kitanihon Shipbuilding for 2023 delivery. The new vessels will have 18 cargo segregations, thermal oil heating and be suitable for the carriage of propylene oxide. “With a flexible cargo tank figuration, these vessels will be perfect for our parcel trade between northern Europe and the Mediterranean,” Seatrans say, adding that the new ships will be an important step in the renewal of its fleet.

The new ships will be built to the highest standards of environmental protection, fuel efficiency and safety, Seatrans adds. They will comply with IMO’s Tier 3 NOx and SOx emissions requirements and the Phase 3 EEDI compliance level. seatrans.no

ANOTHER ADDITION FOR THUN

Thun Tankers has taken delivery of Thun Britain, the second of two 4,250-dwt ‘NaabsaMAX’ product tankers ordered from Ferus Smit against a long-term charter with Geos Group and designed to work in shallow-draught ports in the UK.

“With two high quality NaabsaMAX size tankers we can offer increased flexibility in this niche segment,” says Joakim Lund, CEO of Thun Tankers. “These tankers have been built to the absolutely latest design, enabling Geos Group and their clients access to the most efficient and sustainable transport solution available in this segment.”

Thun Tankers has also ordered another vessel in its Vinga series of 18,000-dwt dual-fuel product tanker, which will be the tenth. It is due for delivery from China Merchants Jinling Shipyard in 2024 and will join the Gothia Tanker Alliance network under the technical and commercial management of Furetank. As well as being able to use LNG or liquefied biogas (LBG) as fuel, the ships are also fitted with a battery hybrid propulsion system.

“It is very good news that Erik Thun continues to engage in the development of Gothia Tanker Alliance. It helps us reach ever greater environmental benefits,” says Lars Höglund, CEO of Furetank. “With this vessel, we will operate 15 dual-fuel tankers of the highest environmental standard. It increases the efficiency of our logistics and reduces climate emissions, as we always have a vessel in the right position for every transport and thereby minimise the time in ballast.” thuntankers.com