Sweden’s Concordia Maritime has struck a deal with an undisclosed Greek-based buyer for the sale of its 2005-built product tanker, Stena Paris.
The 65,000 dwt P-Max tanker, built by Brodosplit Shipyard in Croatia, is scheduled for delivery at the end of July 2022, with the sale expected to have a positive liquidity effect of around $5m.
Concordia said the surplus will be used for accelerated repayment of loans in accordance with the existing bank agreement. Last October, the Stena-backed firm entered into binding agreements with its banks regarding new loan terms and conditions for eight of its ten P-MAX vessels. The agreement came after the company had earlier revealed that its liquidity had been substantially reduced, putting it at risk of breaching covenants in its loan agreements.
The company added that asset values for tankers have risen during the spring in line with the positive freight market and that the agreed price is significantly above the market valuations at the end of 2021.
“The sale of Stena Paris is made primarily to take advantage of the increased ship valuations and improve the company’s financial position, but in addition there is also an age factor. The Stena Paris was the first ship to be delivered in the P-MAX series. It is now almost 17 years ago and in a strong secondhand market for mature quality tonnage, we are therefore now taking the opportunity to sell our oldest vessel,” said Erik Lewenhaupt, CEO of Concordia Maritime.