Another project completed!
The low markets in 2017 and 2018 led to many shipowners seeing themselves benefiting from selling ships for recycling. In 2018, we registered the highest levels of Aframax ships that were sold for dismantling in several years. This made us consider the ideal timing for investing in the Aframax segment. In January 2019, we thus facilitated the purchase of a 2003-built Aframax for our investors.
Due to a positive sentiment in the rates and the market, we chose to place the ship in a spot pool during the duration of the project. The spot pool delivered earnings of between USD 13,457 and USD 53,165 during the life of the project, which was well above the ship’s break-even levels.
When the market reported guide values for 2003, Aframax built on well above the entry value, we began to actively look for interested buyers. This culminated in a sale where investors in EMF XVI saw a rise in value of the ship of USD 4,750,000.
1,5 years later, we are proud to announce that investors in EMF XVI are left with an overall effective return of 69%.
Today, we are experiencing a negative stimulus in the market in the wake of Covid-19 measures that have sent several ship classes down to what we believe are underpriced levels. With the lowest order book since 1996 and the oldest fleet since 2002, we consider today’s levels to be an excellent buying opportunity in the tanker market.