Chemoil sells its VLCC

SINGAPORE-listed international bunker supplier Chemoil has sold the VLCC it bought to provide short-term storage at Singapore for US$26.5m. The 225,000 dwt Anand Sea has been bought by Glory Town Investments Limited.

Chemoil’s Chief Financial Officer, Jerome Lorenzo said: “In view of the earlier than scheduled commencement of our land based storage terminal, the fuel oil market being back-dated until the end of this year and the anticipated decline in the second hand tonnage market, we have considered it to be commercially prudent to dispose the floating storage facility given the attractive purchase offer.”

The company currently leases 46,099 metric tonnes of land based storage capacity at Vopak in Singapore for fuel oil and blended products. The VLCC was originally acquired as a short-term measure to provide additional capacity until its terminal was completed. However, during Chemoil’s second quarter, the vessel experienced operational disruptions whilst stationed in Malaysian waters.

Mr Lorenzo said: “The transaction has been a timely and profitable opportunity. We look forward to strengthening our performance in Singapore during the next quarter and increasing Chemoil’s long-term market growth within the region.”

Source:Maritime Information Systems