Höegh Autoliners score another bargain

Höegh Autoliners score another bargain

Höegh TrapperHöegh Autoliners

Höegh Autoliners have again pounced at the opportunity to buy a vessel at a cut price as it brought Höegh Trapper under its ownership. Pursuant to bareboat charter party Höegh Autoliners declared an option to buy the vessel for $53.2 million from Ocean Yield. The vessel’s market value, estimated by three different brokers, was at $96 million by the end of the third quarter. 

The company said it is now working on financing the purchase of the vessel. Höegh Trapper was built in 2016 with a capacity of 8,500 CEU. The vessel is a sister vessel to Höegh Tracer, which the company declared a purchase option for in August 2022. It also follows the purchase of Höegh St. Petersburg in October.

The vessel is one of the largest and most environmentally friendly PCTCs in the world and will continue to be a part of Höegh Autoliners’ deep-sea network upon transfer of the ownership. The transaction will enable the realisation of additional value gains from the lease options, as well as reduce the cash cost and allow for better capacity cost control in an overheated charter market.

Per Øivind Rosmo, CFO of Höegh Autoliners, said, “Höegh Trapper is the fourth bareboat chartered vessel where we declare a purchase option in 2022. By taking direct ownership of the vessel, we demonstrate our commitment to serve and build a long-term relationship with our customers based on a fleet we own and control. Bringing home Höegh Trapper means that we will have ownership of all 6 Horizon class vessels built at Xiamen Shipbuilding Industry in 2015 and 2016. These vessels are among the largest and most fuel efficient PCTCs sailing the oceans and are together with the Aurora class vessels under construction an important part of our ambition to continue to reduce our carbon intensity and our journey towards being carbon neutral by 2040”

Author: Adnan Bajic

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