Sweden-based Concordia Maritime announced that the second quarter of 2023 was largely dominated by continued vessel sales. The company sold the product tanker Stena Penguin, while agreements were signed for the sale of another two vessels, the 2011-built Stena Premium and 2009-built Stena Progress.
At the end of May, the 2010-built Stena Penguin was delivered to her new owners. This transaction had a positive liquidity effect of approximately 215 million Swedish kronen after repayment of the bank loan.
After the end of the second quarter of 2023, Concordia Maritime has also agreed on the sale of the vessels Stena Premium and Stena Progress.
In accordance with the company, these sales are being conducted with the conviction that, given the strong market, the time is right to “cast off” and sell tonnage of the type and age that Concordia Maritime has had.
With the sales that have now been agreed, the company will have repaid all loans and will have a net cash position, something that looked highly unlikely at the beginning of 2022.
Concordia Maritime’s chief executive Erik Lewenhaupt believes that the outlook for the tanker market remains positive for autumn, but with a tense geopolitical situation, a defiant OPEC and an uncertain international economy, things can change quickly.
“Which is why we have chosen to act now,” Erik Lewenhaupt said.
“As always, timing is important, both when buying and selling. In the tanker market, the price level is high and it may be appropriate to let the market cool down before investing.”
Erik Lewenhaupt highlights the fact that in dry cargo, asset values have come down slightly due to a weak freight market. As far as the offshore wind is concerned, the chief executive notes that prices are rising, but demand is growing strongly.
“We are not closing any doors but looking broadly at both the tanker and other segments. Some projects are concrete and discussions are in progress with potential partners, while other paths are at an earlier stage,” he added.
According to Concordia Maritime, the tanker market remained strong in the second quarter of 2023. Average earnings per day for an MR tanker employed in the spot market amounted to approximately $22,700. However, the trend was declining and in June and July rates averaged around $16,200 per day.
The drop in earnings also affected the rates for shorter time charters. A 12-month contract for an MR tanker was valued at $30,000 per day in April but fell to $25,250 per day in June.
The slightly weaker end to the quarter is partly explained by a tightening of OPEC production quotas and continued economic uncertainty, particularly in China, said the chief executive.
