Shipping Corp of India looking to Buy Suezmax Tankers

STATE-OWNED Shipping Corporation of India is looking to purchase secondhand suezmax tankers as it steps up its fleet expansion plans.

News ID: 71919

Date: 28 January 2017 - 12:49

According to MANA, in the tender document, SCI said it was interested in acquiring seven- to 11-year-old suezmax tankers. Potential vendors have to submit their offers by February 15. It did not specify the number of vessels it was seeking to acquire.

The most recent sale of this type of vessel was earlier this month, when a 157,700 dwt suezmax tanker built in 2010 was sold for $36.5m, according to VesselsValue.

The tender, if successful, will add to SCI’s well-diversified fleet of crude tankers, which includes medium range, long range, aframax and suezmax tankers, and very large crude carriers.

The latest tender follows one earlier this month, when SCI sought a secondhand liquefied petroleum gas carrier of 10 to 15 years of age. The tender for the very large gas carrier closed on January 23 but the company did not disclose if it had been awarded.

SCI already has two LPG tankers of 17,601 dwt each and jointly owns three liquefied natural gas tankers, of which two have a cargo capacity of 138,000 cu m and the third has a capacity of 155,000 cu m.

Additionally, it owns 17 bulk carriers and five containerships.

As the current oversupply of vessels — with yet more newbuildings to be delivered — prompts potential sellers to lower their prices, well-funded likely buyers are able to take advantage and grow their fleets.

However, the woes afflicting the maritime industry have also been affecting SCI.

It reported a loss of Rs200m ($2.9m) for its fiscal second quarter to September 30, with weakness across all segments.

SCI had posted a net profit of Rs1.6bn in the year-ago period. Its revenue during the period contracted by almost one-third year on year to Rs7.59bn from Rs10.91bn.Its tanker segment — which comprises crude and product carriers, gas carriers and phosphoric acid carriers, and accounts for more than half its revenue — was weaker but continued to remain profitable.