Okeanis Eco Tankers has struck deals to sell two 2019-built VLCCs, Nissos Santorini and Nissos Antiparos, to John Fredriksen’s Frontline for $180m, and to buy another VLCC pair under construction at Hyundai Heavy Industries from Ioannis Alafouzos-controlled Kyklades Maritime for $194m.
The deal with Frontline was concluded on a charter-free basis, and is anticipated to be completed by latest November 2021. The sale is expected to generate net proceeds of approximately $40m after repayment of lease financing outstanding at delivery.
The resale 300,000 dwt scrubber-fitted VLCCs are of eco-design, expected for delivery in Q1 2022 and Q2 2022. The vessels are designed to operate on alternative fuels, including biofuel, and to be retrofitted to consume lower carbon fuels such as LNG or methanol.
The anticipated capital structure of the resale VLCCs should reduce daily cash breakeven costs by $3,100 per ship and accelerate equity build-up by around $1m per year per ship.
After the Frontline transaction, Okeanis intends to propose a shareholder distribution of $20m to 23m and to pay $17m to Alafouzos, representing the difference between the acquisition price and $177m. The company has also agreed to defer repayment of 20% of the resale VLCCs, settled between Alafouzos and the shipyard to any date before the end of June 1, 2024 at a cost of 3.5% fixed interest.