Larine Tankers, affiliated with the Odfjell family, has sold its two LR1 tankers for $110 million to Emirati interests. This move is part of the company's exit from direct ownership of tankers and in response to high second-hand tanker market prices.
Details of the Deal and the Vessels
Shipowners have identified the sold tankers as Bluebird and Starling, both built in 2016 at the New Times shipyard in China. Estimates suggest that each of these tankers was sold for approximately $55 million.
According to fleet databases, Larine Tankers is identified as the registered owner of these two tankers under the Singapore flag and a deadweight of 74,000 tons, with no other vessels registered under this company. These tankers have been employed in Hafnia's LR1 fleet since February 2017, and given the reported sale, there may be changes in their commercial employment following delivery.
Implications and Tanker Market Status
This deal is seen as an exit from direct tanker ownership by Larine, nearly a decade after these vessels entered service. Additionally, this action reflects buyers' willingness to pay higher premiums for relatively modern tankers. Recent reports from shipowners also indicate the sale of the LR1 tanker Jag Sparrow, built in 2005, for over $23 million, highlighting the significant price gap between older and modern vessels.
Earlier this month, Belgian owner Transpetrol was also linked to the sale of its aframax tanker TP Affinity, built in 2016, to Turkish buyers for $73 million. Furthermore, Scorpio Tankers has agreed to sell three other older tankers for $180.5 million to advance its fleet renewal program.
The buyers of these two tankers have not yet been precisely identified, and no delivery date or deal closure has been announced. Larine Tankers is recognized as part of the private shipping interests of the Odfjell family, and Marianne Odfjell, a family member, has longstanding connections with Larine's investment structure.
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