ESL Shipping sheds Supramax vessels

ESL Shipping sheds Supramax vessels

Photo ESL Shipping

ESL Shipping has signed a memorandum of understanding with HGF Denizcilik Limited Sirket, a Turkish shipping and logistics company, to sell two of its Supramax class vessels named Arkadia and Kumpula. This decision is a part of ESL Shipping’s program to support and accelerate its low-carbon growth strategy.

The vessels are scheduled to be delivered in April-May 2024 and the sales price is set at $37.1 million, which will be paid in full in cash. Taking into account the carrying amount of the vessels and the cost of selling them, a sales loss of around €7 million ($7.6 million) is expected.

With the sale of the two Supramax vessels, ESL Shipping will turn its focus to Handysize and Coasters vessels as it further develops the partnership strategy with the current and future customer base. The operating profit of the Supramax vessels in 2023 stood at €1.6 million, down from €5.7 million a year prior.

Read also: ESL Shipping targets renewables and project cargo

“The sale of the two Supramax vessels is well aligned with ESL Shipping’s low-carbon strategy. It also stabilises ESL Shipping’s profit generation and frees up capital for Aspo’s and ESL Shipping’s future strategic growth efforts,” says Rolf Jansson, CEO of Aspo Group and Chairman of the Board of ESL Shipping.

Two 1A ice-strengthened Supramax vessels, each with a capacity of 56,000 dwt, were originally acquired in 2012. The length of each vessel is 197 metres, and the maximum draft with a full cargo is 13.0 metres. Both ships, m/s Arkadia and m/s Kumpula, have been operated 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,“ says Mikki Koskinen, Managing Director of ESL Shipping.

Author: Adnan Bajic

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