Euronav’s VLCC Luxembourg Sold for Conversion

Euronav’s oldest double – hulled VLCC Luxembourg is bidding farewell to worldwide VLCC trading fleet as it heads for conversion.

VLCC Luxembourg, built in 1999, was sold for for USD 28 million. The capital gain on that sale of about USD 6 million will be recorded at delivery. The net cash proceeds available to Euronav after the mandatory repayment of its debt obligation will be USD 5 million.

The 299,150 DWT vessel will be converted into a FPSO by her new owner and will therefore leave the worldwide VLCC trading fleet. The firm price of this sale reflects on the company’s strategy to set up an offshore department capable of understanding the needs of potential offshore buyers as well as having always maintained the ship well above industry standards.

The vessel is foreseen to be delivered to its new owner between 1 May 2014 and mid June 201 4 which should allow for two more profitable voyages prior to her delivery.

[mappress]
Press Release, January 16, 2014