Diamond S Shipping Inc. Announces Strategic Product Tanker Partnership With NORDEN
Diamond S Shipping Inc. announced a strategic partnership with NORDEN A/S (CPH:DNORD), DiaNor, to facilitate the commercial consolidation of two of the world’s largest owner/operators of product tankers. Diamond S will initially contribute 28 medium range (MR2) product tankers to the endeavor, which will be marketed and operated through the Norient Product Pool (“NPP”). Diamond S also intends to contribute its existing in-house commercial expertise in the product tanker space to the global network of NPP. Pro forma the contribution of DiaNor ships, the Norient Product Pool will manage approximately 150 tankers and become one of the largest operators of medium range (MR) product tankers in the world.
Craig Stevenson Jr., CEO & President of Diamond S, commented, “We are pleased to further continue the much needed consolidation of the tanker industry. The DiaNor partnership is an exciting new chapter for Diamond S. We believe it will create substantial value for both our shareholders and our customers. We have worked with Norden and NPP in the past and believe that they represent a state-of-the-art, world-class commercial organization. Adding our considerable capabilities to their extensive network should produce a clear leader in the product tanker space.”
NORDEN CEO Jan Rindbo says of the partnership, “We are delighted to enter this partnership with Diamond S, which will further strengthen our ability to provide efficient global transport solutions to our product tanker customers. Diamond S has been a valued partner of Norden in the past and we look forward to what we can create together in the future.”
DiaNor enables Diamond S and NORDEN to continue to serve their valued and existing clients via the NPP platform even better, by creating a well-managed, homogeneous fleet, ensuring flexibility and quality service to all parties. The combined fleet will create scale, expediting further development of the digital solutions already in play in both organizations as well as optimization including fuel efficiency, bunker purchasing and vendor contracts around the world.
“We are convinced that the scale created by the combined fleets as well as the people competencies will create great value to our stakeholders,” says Søren Huscher, Head of Tanker Operations at NORDEN. “The strong values upon which we are both built will be the backbone of our joint efforts.”
The management of the combined fleet of around 90 MR2 product tankers will be handled from NORDEN’s existing office locations in the U.S., Singapore and Denmark and become one of the largest within the segment.
TOP Ships Inc. Announces Acquisition of Two Scrubber Fitted ECO MR Tanker Newbuildings With Time Charters
TOP Ships Inc., an international owner and operator of modern, fuel efficient “ECO” tanker vessels, announced today that it has acquired 100% of the issued and outstanding shares of Santa Catalina Inc. and Santa Monica Inc., which are Marshall Islands companies that have entered into new building contracts for two ultra-high specification scrubber-fitted 50,000 dwt Medium Range (“MR”) product/chemical tankers under construction at Hyundai Mipo Dockyard Co., Ltd. in South Korea and scheduled for delivery during February 2020.
The Company has acquired the shares of both companies from an entity affiliated with the Company’s Chief Executive Officer, for an aggregate purchase price of $14.35 million. Following their delivery, the vessels will enter into time charters with Trafigura Maritime Logistics Pte Ltd. (“Trafigura”) for a firm duration of three years, with charterer’s option to extend for two additional years at. The Company is in the process of concluding financing agreements for both vessels.
The acquisitions were approved by a special committee composed of independent members of the Company’s board of directors, (the “Transaction Committee”). The Transaction Committee obtained a fairness opinion relating to the consideration paid in this transaction from an independent financial advisor.Evangelos Pistiolis, President and CEO of the Company, stated: “The new additions to our fleet are in line with our strategy of always operating latest technology ships and increase our gross revenue backlog for the fixed charter period of our vessels by $38.3 million, which as of June 30, 2019 stood at $165.3 million. Furthermore the quality of the charterer evidences the quality of the acquired vessels.”
Navios Acquisition to Add Product Tanker Quintet
Monaco-based ship owner and operator Navios Maritime Acquisition Corporation has inked an agreement to acquire five product tankers in liquidation of Navios Europe I.
The ships in question are MR1 tankers Perseus N, Star N, Hector N and LR1 tankers Aurora N and Lumen N.
On November 22, 2019, an agreement was reached to liquidate Navios Europe I, a company formed a few years ago to manage portfolios of vessels owned by HSH Nordbank.
As of September 30, 2019, Navios Acquisition had a receivable of USD 32.3 million from Navios Europe I.
This receivable along with debt financing will be used to finance the acquisition, the company said.
The agreement is subject to definitive documentation which is expected to be completed by the end of 2019, according to Navios Acquisition.
Navios Acquisition’s operating fleet currently comprises 38 vessels. In addition, the company is expected to take delivery of three VLCCs in 2020 and 2021.