Maersk agrees to buy two vessels from Torm
Maersk Tankers, part of Danish oil and shipping group A.P. Moller-Maersk said on Friday it had acquired two product tanker vessels from struggling peer Torm, Reuters reports. Maersk Tankers said in a statement it would take over two LR2 (Long Range) product tankers in the fourth quarter of 2011.
The parties had agreed not to disclose the sales price, but according to Maersk, the vessels had been acquired at "attractive" levels.
"Growing our fleet at attractive price is in alignment with Maersk Tankers' strategy to reinforce our market leading position in the LR2 segment," said Maersk Tankers' chief commercial officer Klaus Rud Sejling in a statement.
The company's strategy is to grow at the bottom of the cycle through buying second-hand tonnage, Maersk Tankers said.
The shipping industry will face tougher financing conditions in the next 24 months as banks tighten credit lines with more asset sales and ship seizures expected as a rout in seaborne earnings also takes its toll.
Shipping companies especially in the crude oil tanker and dry bulk sectors, hit by weak earnings and an oversupply of vessels, have already found it hard to find financing.
"Maersk is right buying into the product tanker market and there will be more opportunities to acquire assets," said Pareto analyst Martin Korsvold.
"We will see more downwards pressure on assets as the banking market is very difficult at the moment," Korsvold said.
"Some don't have enough cash to make collateral and you will see bankruptcies," Korsvold said. He added particularly the crude tanker market would be affected.
The sale had no impact on Torm's profit and loss statement, but would have a positive effect on the liquidity of about $20 million, Torm said. The sale would not change Torm's financial guidance for 2011, it said.
The parties had agreed not to disclose the sales price, but according to Maersk, the vessels had been acquired at "attractive" levels.
"Growing our fleet at attractive price is in alignment with Maersk Tankers' strategy to reinforce our market leading position in the LR2 segment," said Maersk Tankers' chief commercial officer Klaus Rud Sejling in a statement.
The company's strategy is to grow at the bottom of the cycle through buying second-hand tonnage, Maersk Tankers said.
The shipping industry will face tougher financing conditions in the next 24 months as banks tighten credit lines with more asset sales and ship seizures expected as a rout in seaborne earnings also takes its toll.
Shipping companies especially in the crude oil tanker and dry bulk sectors, hit by weak earnings and an oversupply of vessels, have already found it hard to find financing.
"Maersk is right buying into the product tanker market and there will be more opportunities to acquire assets," said Pareto analyst Martin Korsvold.
"We will see more downwards pressure on assets as the banking market is very difficult at the moment," Korsvold said.
"Some don't have enough cash to make collateral and you will see bankruptcies," Korsvold said. He added particularly the crude tanker market would be affected.
The sale had no impact on Torm's profit and loss statement, but would have a positive effect on the liquidity of about $20 million, Torm said. The sale would not change Torm's financial guidance for 2011, it said.