Jinhui Shipping and Transportation has agreed to sell one of its old tankers, named "Jin Xing," to Heng Fa Shipping. This ship, built in 2007 and with a capacity of 55,496 tons, will be sold for $14.6 million. This deal is part of the fleet renewal plan of this Hong Kong-based company.
Details of the Deal and Transfer of Ownership Timing
An agreement for this deal has been signed between Jinhui and Heng Fa Shipping, and the transfer of ownership of this ship is expected to take place between October 20 and November 30. This ship has been owned by Jinhui since its construction in 2007, and the company estimates that it will gain a profit of approximately HKD 52 million (about $6.7 million) from this sale.
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Financial Impacts and Changes in the Fleet
By selling this tanker, Jinhui Shipping aims to reduce short-term debts and improve liquidity. The company currently has 19 tankers, including 16 owned and 3 leased. The Ang family, which controls Jinhui, is currently reshaping its fleet. This change includes selling old ships and investing in larger and more modern vessels.
The sale of this tanker is seen as a step towards renewing Jinhui's fleet and reflects the company's strategic changes in response to market needs and its financial improvement. Given the global market and current trends in the shipping industry, updating and modernizing the fleet can help this company remain competitive and continue to improve its financial performance.
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