International Seaways closes $434m acquisition of six VLCCs

18 June 2018 (Last Updated June 18th, 2018 11:37)

US-based tanker company International Seaways (INSW) has completed the $434m acquisition of six 300,000 DWT very large crude carriers (VLCCs) from Euronav.

US-based tanker company International Seaways (INSW) has completed the $434m acquisition of six 300,000 DWT very large crude carriers (VLCCs) from Euronav.

The completion follows the initial agreement signed between the companies in December last year.

With an average age of two years, the acquired fleet comprises five 2016-built VLCCs and one 2015-built VLCC.

All these vessels were manufactured at Shanghai Waigaoqiao Shipbuilding.

International Seaways president and CEO Lois Zabrocky said: “The acquisition of these highly efficient modern sister ships underscores our success in executing on our stated strategy of growing and renewing International Seaways’ fleet during a low point of the cycle.

“Since completing our spinoff in December 2016, we have grown our fleet 23% on a deadweight tonne basis and reduced the fleet’s average age by close to three years, without diluting our shareholders.”

INSW financed the transaction with available liquidity and by assuming $311m of debt secured by the six vessels under a China Export and Credit Insurance (Sinosure) facility funded by The Export-Import Bank of China, Bank of China (New York Branch), and Citibank.

“We have grown our fleet 23% on a deadweight tonne basis and reduced the fleet’s average age by close to three years.”

Following the completion of this transaction, INSW fleet now comprises 55 vessels.

It includes one ULCC, 14 VLCCs, two Suezmaxes, seven Aframaxes / LR2s, 12 Panamaxes / LR1s and 13 MR tankers.

The company also owns significant stakes in four LNG carriers and two floating storage and offloading service vessels through joint ventures.

INSW delivers energy transportation services for crude oil, petroleum products and LNG across the globe.

Zabrocky added: “Each of the ships acquired since our formation is named after a lighthouse: Montauk, Hatteras and Raffles.

“These six ships are expected to be named after lighthouses as well: Seaways Liberty, Seaways Hendricks, Seaways Diamond Head, Seaways Cape Henry, Seaways Triton, and Seaways Tybee.”