THREAD #OOTT $HUNT

A pair of one-year-old VLCCs controlled by Norway’s Hunter Group have been sold on subjects to Abu Dhabi’s state-run energy company Adnoc.

The 300,000-dwt, scrubber-fitted Hunter Laga and Hunter Saga (both 2019) have been committed to a sale at $84m each.

Arne Fredly-controlled Hunter said in March that it had fixed the Hunter Laga (built 2019) for six months at $80,000 per day to a trading house. The company said earlier that Hunter Saga would be trading in the spot market in the Tankers International Scrubber Pool.

Brokers described the $84m price tag as “cheap”, pointing to a VLCC newbuilding which sold in August for $90m. One VLCC market player contrasted the price to the $106m paid in January by a shipowning trio which paid $106m in March for Hartree’s 300,000-dwt newbuilding Gustavia S

But he highlighted that the Gustavia S deal was done when rates for modern VLCCs hit highs in the upper $200,000 per day range, which contrasts with today when spot earnings barely cover operating expenses. If the sale goes through, it would leave Hunter with five trading VLCCs.

Adnoc L&S has been tendering for modern VLCC tonnage for some time. The company started the process in late 2019 in what was then a rising market but the business stalled before being revived this year.

Brokers said Adnoc had requested a vessel built from 2018 onwards for delivery this year and had indicated some flexibility to look at 2021 handover dates. Adnoc is in talks with shipyards for up to 6 VLCCs and 8 aframax LR2 tanker newbuildings.

Yards have quoted on three firm VLCCs with options on a similar number of ships. Similarly bids went in on four LR2s and a quartet of optional vessels. The company is expected to finalise the newbuildings within this year.

END

Source: TradeWinds

$HUNT +7.12% on the news.

REMINDER: Here is the fleet list from $HUNT's website.

If they only have 7 Vessels and have sold two of them, it does seem to imply a liquidation. Will the company be sold at close to NAV? Is this an arbitrage opportunity? Inquiring minds want to know.

Norwegian forums are discussing the implications here:

https://finansavisen.no/forum/thread/113631/view/0/0?page=3

and here:

https://finansavisen.no/forum/thread/113631/view/0/0?page=4

The discussion is ongoing, last message posted 5 minutes ago. Go forth, use Google Translate & prosper.

$HUNT