ESL Shipping to sell its supramax vessels
Published by Oliver Kleinschmidt,
Editorial Assistant
Dry Bulk,
ESL Shipping has signed a memorandum of understanding (MoU) to sell its two supramax class vessels Arkadia and Kumpula to companies belonging to HGF Denizcilik Ltd Sirket group, a Turkish shipping and logistics company. The sale of the vessels was part of a program announced in April 2023 to support and accelerate ESL Shipping’s low-carbon growth strategy.
The delivery of the vessels has been expected to take place in April-May 2024. The sales price is US$37.1 million and it will be paid fully in cash. Considering the carrying amount of the vessels and the cost to sell, the sales loss has been expected to be approximately €7 million.
Following the sale of the supramax vessels, ESL Shipping will continue to focus on handysize and Coaster vessels and further develop its partnership strategy with the current and future customer base. In 2023, the operating profit of the supramax vessels was €1.6 (2022: €5.7) million.
“The sale of the two supramax vessels was well aligned with ESL Shipping’s low-carbon strategy. It also stabilised ESL Shipping’s profit generation and freed up capital for Aspo’s and ESL Shipping’s future strategic growth efforts,” stated Rolf Jansson, CEO of Aspo Group and Chairman of the Board of ESL Shipping.
The two 1A ice-strengthened supramax vessels of 56 000 DWT were originally received in 2012. The length of the vessels is 197 m and the maximum draft with a full cargo is 13.0 m. Both m/s Arkadia and m/s Kumpula have sailed under the Finnish flag.
“As the traditional markets for our supramax vessels on the Baltic Sea and the Arctic have changed significantly, now is the right time to sell these vessels. The sale will support our roadmap towards green shipping and our ambition to bring fossil-free handysize vessels to the market. The sale enables us to allocate even more resources to accelerate the green transition,“ said Mikki Koskinen, Managing Director of ESL Shipping.
Where possible, the crews of the supramax vessels will be re-employed in ESL Shipping’s remaining vessels.
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Read the article online at: https://www.drybulkmagazine.com/shipping/19032024/esl-shipping-to-sell-its-supramax-vessels/
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