Euronav Inks Sale and Leaseback Deal for VLCC Quartet

Image Courtesy: Euronav

Antwerp-based tanker owner and operator Euronav NV has entered into a five-year sale and leaseback agreement for four very large crude carriers (VLCCs) with investment vehicles advised by Wafra Capital Partners Inc., a private equity partnership.

The vessels included in the deal are the 2006-built Nautilus, and 2007-built Navarin, Neptun and Nucleus. Featuring 307,284 dwt each, the VLCCs joined their new owners on December 22, 2016.

Euronav has leased back the four vessels, which were built by China’s Dalian Shipbuilding Industry (DSIC), under a five-year bareboat contract at an average rate of USD 22,000 per day per vessel.

At the expiry of each contract the VLCCs will be redelivered to their new owners.

Euronav said that the transaction, which assumes a net en-bloc purchase price of USD 186 million, produced a capital gain of about USD 37 million and should be booked as an operating lease under IFRS.

“This transaction has the advantage of increasing our liquidity position for 2017 whilst maintaining our exposure to a market that, we believe, will be interesting over the next five years,” Hugo De Stoop, CFO of Euronav, said.

After repayment of the existing debt, the transaction generated in excess of USD 100 million free cash.

Share this article

Follow World Maritime News

In Depth>

Events>

<< May 2017 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31 1 2 3 4

3RD ANNUAL WRECK REMOVAL CONTRACTS AND OPERATIONS SEMINAR

A comprehensive guide to legal and operational aspects of wreck removal incidents…

read more >

BARI-SHIP2017

At Bari-Ship you will meet not only the owners and leaders of these companies, but also the entire spectrum of managerial, operational and production staff…

read more >

Nor-Shipping 2017

Nor-Shipping is the leading maritime event week. Their top-quality exhibition, high-level conferences and prime networking opportunities…

read more >

2ND ANNUAL PORTS AND TERMINALS INSURANCE SEMINAR

DETAILED GUIDANCE ON HOW THE INSURANCE MARKET IS CHANGING, HOW RISKS ARE ASSESSED AND WHAT…

read more >