Arne Fredly’s Oslo-listed pure-play VLCC company Hunter Group has secured time charter contracts for three of its VLCCs.
The Hunter Atla, Hunter Laga and Hunter Freya have each entered into six-month time charter agreements on an average dayrate of around $80,000 per day. The contracts will commence immediately, following completion of their current spot voyages.
Hunter said the high rates will significantly de-risk the company’s second and third quarter cash flow.
“These are extraordinary high rates in what is normally a low-season for oil tankers, and reflects the incredible market created by the ongoing OPEC+ price war. No one knows how long this price war will last, and locking in these stellar rates on part of the fleet seems like a prudent move in these uncertain times,” Cleaves Securities commented.
“The vessels will be redelivered in what is usually the start of the seasonally strong winter market, where we forecast VLCC spot rates could average around $100k/d for 4Q20E. Might not sound like much these days, but rest assured that investors should rejoice if such rates are sustained over time,” Cleaves Securities added.
Hunter Group ordered a total of eight VLCCs at DSME in 2018, and later sold one to South Korean owner SK Shipping and another three to Ship Finance International under sale and leaseback arrangements. The company currently has three VLCCs under construction at DSME.