Iino makes huge $26m profit on VLGC sale as rates jump 55% in a week
Japanese owner reported to have sold gas carrier to Ravi Mehrotra’s Foresight as market rebounds further
Japanese owner Iino Kaiun is banking a significant profit from the disposal of a 13-year-old VLGC against a background of strongly recovering rates.
The company said it had agreed to sell the 80,186-cbm Lotus Gas (built 2008), with the handover taking place between mid-May and mid-June.
The shipowner added that the gain on the deal will be ¥2.9bn ($26.2m).
Iino said it was not revealing a price or book value due to confidentiality obligations with its counterparty, which it added was an overseas company. But brokers put a price tag of $48m on the deal. UK shipbroker Clarksons identified the buyer as Ravi Mehrotra’s Foresight Group, which is listed as owning two aframax tankers.
The company has not commented on the deal.
VesselsValue assesses the ship to be worth $46.2m
Newbuildings on the way
The sale leaves Iino with 19 smaller LPG carriers, as well as tankers, although two VLGCs are on
order in South Korea and Japan for delivery this year and in 2023.
Iino said the vessel was sold to “effectively utilise management resources and improve asset
efficiency”.
Clarksons Platou Securities put VLGC spot rates at $29,800 per day on Wednesday, up 55.5% in a
week, following a recovery from a low of around $7,000 earlier this year.
The Baltic Exchange is assessing freight rates at $46.50 per tonne, up 69% from a low of $27.50 per
tonne on 5 March.
No Suez Canal effect
“The Suez Canal has little impact on this market given the reliance of US exports through the
Panama Canal and via the Cape [of Good Hope],” Clarksons Platou said, referring to the six days of
delays caused by the grounding of the Evergreen Marine-operated, 20,388-teu containership Ever
Green (built 2018) in the waterway on 23 March 2021.
The investment bank added that rising freight levels have been much more driven by demand, with
higher activity from the US Gulf to Asia.
“That said, there are also delays at Far East discharge ports which are supporting the market, and
brokers have also reported there is a fair number of vessels heading to dry dock,” Clarksons Platou
said.
VLGC spot rates had increased 25% last week, according to Cleaves Securities.
“Discharge delays in Far Eastern ports and emerging end-March and April cargoes ex-USG has
significantly reduced the tonnage list in the west,” Cleaves head of research Joakim Hannisdahl said.
