Concordia Maritime announces the sale of 2 product tankers

August 11 2023 Print This Article

Concordia Maritime AB has entered into an agreement regarding the sale of the product tankers Stena Premium and Stena Progress. The sale results in a liquidity surplus of approximately MSEK 100.

Stena Progress and Stena Premium were built in 2009 and 2011, respectively, and both of 65,200 dwt. Delivery is estimated to take place during the third quarter of 2023. After repayment of loans and debts to related parties, the transaction generates a liquidity supplement of approximately MSEK 100. The debts that remain are current operating liabilities.

"Through the sale, we continue to benefit from the strong market and the high price level for older ships. As previously communicated, intensive work is underway to outline the company's future direction and operations. The work is progressing and we have good hopes of being able to present more information in the second half of 2023", says Erik Lewenhaupt, CEO of Concordia Maritime.

Since 2021, Stena Progress and Stena Premium have been subcontracted on a five-year charter to Stena Bulk, which in turn subcontracted the vessels on a combination of short and medium-term contracts. At the time of the sale, both vessels were employed on contracts that extend until autumn/winter 2024. The buyer of the vessels takes over the responsibility for these contracts from Stena Bulk with the transaction. The sales price is influenced by the buyer's expected earnings for the vessels during the remaining contract period.

After the sale, Concordia Maritime's fleet consists of one vessel, Stena Polaris , which since the beginning of 2022 is outsourced on a bareboat contract to American Crowley Government Services Inc. Crowley in turn leases the vessel to the US Military Sealift Command. The contract with Crowley includes options for extension until the end of 2026.