Nordic Shipholding sells tanker fleet amid volatile market

Denmark-based shipowner Nordic Shipholding has put the company’s three remaining vessels up for sale after failing to find a merger partner.

Image courtesy: Nordic Shipholding

Since November 2020, the firm has held extensive discussions with potential merger partners and lenders in order to secure long-term viability.

However, such merger talks have been stalled and the company’s management has agreed to sell the vessels in accordance with the agreement with the lenders.

“Given the volatility in the sale and purchase market for these vessels, it is probable the Group may recognise a further write-down of the vessels’ carrying value in the range of US$4 – US$5 million in this financial year,” the company stated.

Furthermore, the company expects that various stakeholders will finance the business to secure that the plans of selling the vessels run without problems.

In August 2020, Nordic Shipholding revealed that the discussions on a potential merger with an unidentified tanker firm have been delayed due to the impact of the COVID-19 pandemic.

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Copenhagen-listed Nordic Shipholding owns five product tanker vessels, four handysize tankers and one LR1.

The handysize tankers are employed in the Hafnia handy pool, and the LR1 unit in the Hafnia LR1 pool (formerly Straits pool), both operated by Hafnia, Copenhagen.