International Seaways sells two ships for green recycling

International Seaways, a New York-based tanker company, has sold two veteran Panamaxes for green recycling.

The duo, with an average age of 19, was delivered to its buyers in April 2022 and comprises one vessel from 2002 and one from 2004. The buyers of the vessels and the yards where the vessels would be dismantled have not been disclosed.

The tanker shipping company said the sale was made as part of its fleet optimization program and to capitalize on historically high recycling values.

“Net proceeds from unencumbered vessels were approximately $14 million. All recycling was done in accordance with the Hong Kong Convention,” the company said in its business results for the first half of 2022.

The convention covers the design, construction, operation and maintenance of ships, as well as preparation for ship recycling to facilitate safe and environmentally friendly recycling.

As part of the fleet optimization push, International Seaways also sold its four remaining Handysize vessels, built in 2006, which generated net proceeds of approximately $30 million in total, after debt repayment.

A 2008-built MR vessel was also sold, generating net proceeds of approximately $10 million, after debt repayment and savings on the installation costs of the third special survey and water treatment of ballast estimated at around $3 million.

Additionally, in June 2022, the company sold its 50% stake in two Floating Storage and Offshore (FSO) vessels to joint venture partner Euronav NV for $140 million.

The transaction has been approved by North Oil Company, the operator of the Al Shaheen field, whose shareholders are Qatar Energy and Total E&P Golfe Limited. The two FSO vessels have been serving the Al Shaheen field continuously since 2010.

INSW’s net profit for the first half of 2022 was $56.0 million, compared to a net loss of $32.1 million for the first half of 2021.

“We capitalized on oil markets that were the strongest we have seen since before the pandemic, based on strong demand, supply constraints and depleted inventories as the world grapples with security. energy. Demand for refined petroleum products, particularly gasoline and middle distillates, has exceeded supply even though refinery utilization is well above pre-pandemic levels,” Lois K. Zabrocky, President and CEO of International Seawayssaid.

After just over a year since our transformational merger which has tripled the size of our fleet and diversified our tanker portfolio with the addition of over 40 product carriers, Seaways is well positioned for the strong underlying fundamentals which , we believe will strengthen oil tanker markets over the next few years. a few years. We anticipate continued rising demand, limited fleet growth and increased use of longer distances between oil supply sources and demand destinations.