Belgian tanker owner Euronav has entered into an agreement for the acquisition of three resale VLCC newbuildings, currently completing construction at DSME in South Korea. The total purchase price for the three vessels is $280.5m
All three vessels will be fitted with scrubbers and ballast water treatment systems and are expected to be delivered early in the fourth quarter, January and February 2021 respectively.
According to Euronav, the vessels are ex-yard resales, which do not add to existing vessel supply.
“Euronav actively looks to regularly rejuvenate its fleet and enhance its operational strength on which this transaction delivers. Upon delivery these vessels will also reduce the average age of our VLCC fleet,” the company said in a release.
The company will fund the acquisition with existing borrowing facilities and debt capacity.
“The large tanker fundamentals remain constructive despite substantial headwinds surrounding economic activity linked to the Corona Virus that we believe and hope will be temporary. Current disruptions to the freight market have provided an opening for Euronav to be opportunistic and deliver what we believe will be long term value for our stakeholders. This transaction demonstrates our flexibility and our capacity to seize opportunities thanks to a strong balance sheet and a robust liquidity position,” said Hugo De Stoop, CEO of Euronav.