Yangzijiang Maritime orders 8 giant oil tankers, sells 4 smaller vessels in twin deals
The acquisition will be funded through a combination of equity co-investment and debt financing
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[SINGAPORE] Yangzijiang Maritime has signed contracts to acquire eight very large crude carrier (VLCC) newbuilds and sell four medium-range tankers, in a pair of transactions that the group said demonstrate its “proven capabilities and track record to originate, build, monetise and recycle capital across the maritime value chain”.
The eight VLCCs, of about 319,000 deadweight tonnes (DWT) each, will be constructed at a large Chinese shipyard with deliveries staggered across 2028, 2029 and 2030, said the company in a bourse filing on Thursday (Apr 16).
The acquisition will be funded through a combination of equity co-investment and debt financing.
Each vessel is built to Phase 3 Energy Efficiency Design Index standards under International Maritime Organization (IMO) regulations, and will be fitted with exhaust gas cleaning systems – commonly known as scrubbers – allowing the group to remain compliant with the IMO’s 0.5 per cent global sulphur cap while retaining the flexibility to burn high-sulphur fuel oil.
On the divestment side, the mainboard-listed company signed contracts to sell four newbuild medium-range tankers of 49,800 DWT each, with deliveries scheduled in 2027 and 2028.
The group said the transactions are expected to contribute positively to its financial performance, subject to completion, delivery schedules and applicable accounting recognition.
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The group said the sale transactions underscore its ability to generate capital gains through vessel monetisation, amid what it described as supportive industry fundamentals including fleet renewal demand and tightening vessel supply.
“This transaction reflects our disciplined approach in realising capital gains through timely asset monetisation at opportune points in the market cycle,” said Ren Yuanlin, executive chairman and chief executive of Yanzijiang Maritime.
“These transactions reflect more than a single asset sale, they demonstrate the strength and repeatability of our vessel monetisation strategy.”
Ren added that the deals would reinforce earnings visibility for FY2026 and FY2027, and that the group continues to see attractive opportunities across the maritime value chain supported by favourable industry dynamics and structural tailwinds.
Yangzijiang Maritime currently operates a fleet of more than 90 vessels, and has newbuilding orders for as many as 50 vessels in the pipeline.
Shares of the company closed S$0.01 or 1.5 per cent lower at S$0.675 before the announcement.
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