Odfjell wants to buy five more tankers

odfjell tankerBowFlower Tanker, photo: Odfjell

Odfjell intends to buy five more chemical tankers

Total price tag is around NOK 1.7 billion. Odfjell SE has signed a letter of intent with the Chemical Transportation Group (CTG) for the purchase of five of the ten vessels of 25,000 deadweight tons tankers that the group is building. The ships are equipped with 24 stainless steel tanks and are built at the AVIC Dingheng yard in China, Odfjell states in a press release.



Pool of 15 ships

CTG will still own five ships. The ships will be included in a pool of 15 chemical tankers in Odfjell’s existing fleet of chemical tankers of similar size. The pool will be commercially managed by Odfjell Tankers.

The five vessels have a agreed price of USD 40 million a piece, equivalent to NOK 350 million, upon delivery from the yard, and will be delivered from June 2017 to May 2018.

Odfjell compass

In total, Odfjell therefore will have to pay about NOK 1.7 billion for the vessels.

– This transaction will be in line with our strategy, “the Odfjell Compass” and will almost fulfill our fleet ambitions, says CEO of Odfjell, Kristian Mørch, in the press release.

He recently told of this strategy at Odfjell’s first capital market day in Bergen. The goal of the chemical tanker company is a fleet of one hundred ships.

The Odfjell fleet already consists of 76 ships. Ten are on order.

– Together with other recently incorporated initiatives for fleet renewal, this agreement will ensure that Odfjell can continue to offer competitive and efficient service to our customers, Mørch continues.

The transaction is subject to final negotiations, comprehensive documentation and customary contractual terms.


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