Scrubber-fitted VLCCs to get big premium: DHT
Scrubber-fitted very large crude carriers (VLCC) should see a time charter equivalent (TCE) premium of $12,500/d compared with VLCCs without scrubbers, according to vessel operator DHT, equal to an additional $4.5mn per year.
The New York-listed VLCC owner predicts it will recoup its $70mn investment in scrubber retrofits for 16 of its 27 VLCCs by the end of 2020. Scrubber installations have been completed on eight of the company's vessels, and two more are expected to be completed this week, the company said in its third quarter earnings release today. The retrofits have taken an average of 37 days.
Despite its expectations of premium rates for VLCCs with scrubbers, DHT has postponed the remaining six installations because of the current higher spot market for VLCCs. So far, DHT has booked 49pc of its fourth-quarter operating days at an average TCE rate of $61,700/d, more than double the $25,500/d rates the company achieved in the third quarter.
DHT reported a net loss of $9.4mn in the third quarter of 2019, compared with a net loss of $21.5mn in the same period in 2018. Revenue was up by 22pc to $58.9mn, partially because of higher year-over-year chartering rates.
source: Argus Media
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