Hong Kong-Listed Titan Petrochemicals Group has agreed to sell a single-hull very large crude carrier (VLCC) for a $17.9m loss
Hong Kong-Listed Titan Petrochemicals Group has agreed to sell a single-hull very large crude carrier (VLCC) for a $17.9m loss and is ?actively considering? further vessel sales.
The oil services company, which operates several tankers and a shipyard in southeast China, said it will sell the 265,243 dwt, 1988-built Titan Neptune for $24m to Panama-based Golden Sunray S.A..
The buyer has paid $10m on 1 December and will pay the remainder upon delivery of the ship which is expected to be done by the end of December at Tanjung Pelepas Port in Malaysia.
Titan will record an unaudited loss of $17.9m from the sale based on the net book value of the ship of $42.6m back in October this year. It intended to use the proceeds to acquire operating assets.
Chairman Tsoi Tin Chun said in a statement that the sale represents ?a good opportunity to realise the value of the ship? and ?the board of directors is actively considering further disposals of its own fleet.?
Titan owns eight costal tankers and four VLCCs, of which two are deployed as floating storage units. It also operates two chartered-in VLCCs. Its transportation fleet capacity is about 1.43m dwt after this ship sale.
The firm said its strategy is to shift business focus to ship repair and oil storage to reduce its previous exposure to the volatile VLCC market which remains poor.