DHT Holding Disposes of Oldest VLCC Trio
- Business & Finance
Crude oil tanker company DHT Holdings has joined its counterparts in the shedding of outdated tonnage as part of its fleet renewal strategy.
The company said that it has inked a deal with an undisclosed single buyer to sell its three oldest very large crude carriers; DHT Utah and DHT Utik, both built 2001, and DHT Eagle built in 2002, for a total price of USD 66.5 million.
DHT plans to use about USD 33.5 million from the proceeds to repay bank debt.
The company expects to deliver the DHT Utah and DHT Eagle to its new owner before the end of 2017 and the DHT Utik in January 2018.
The tanker owner anticipates to record a book loss of about USD 3.5 million in the fourth quarter of 2017 in connection with the sale. The loss is primarily related to the DHT Eagle.
Subsequent to the sale, the average age of DHT’s fleet of VLCCs is 6.1 years.
Following the sale, DHT has a fleet of 27 VLCCs, 23 in the water and four under construction scheduled for delivery in 2018, as well as two Aframaxes.