DHT Holdings sells older scrubber-less vessel to improve fleet efficiency

August 30, 2022, by Ajsa Habibic

Crude oil tanker company DHT Holdings has entered into an agreement to sell its very large crude carrier (VLCC) DHT Edelweiss which is not fitted with an exhaust gas cleaning system (scrubber) in an effort to meet regulatory standards.

The company is selling the 2008-built VLCC to an undisclosed buyer for $37 million and expects to deliver the vessel during the third quarter of 2022.

The scrubber-less vessel is due for its third special survey and installation of a ballast water treatment system (BWTS) in the first quarter of 2023.

According to DHT Holdings, the sale will reduce the average age of the company’s fleet and improve its Annual Efficiency Ratio (AER) and Energy Efficiency Operational Indicator (EEOI) metrics.

The vessel’s outstanding bank debt of about $12.2 million will be repaid in connection with the sale and the company expects to record a gain of about $6.8 million in the third quarter of 2022.

DHT Holdings added that, after this sale and the recently announced retrofit program, the entire fleet will be fitted with scrubbers by the first quarter of 2023.

As reported by Offshore Energy, the company committed $25 million to retrofit an additional eight vessels with scrubbers.

Following the industry’s trend of investing in younger, eco-efficient ships, DHT Holdings also acquired two 2016-built scrubber-fitted VLCCs for a total of $136 million in 2021.

Driven by the increasing stringency of regulatory standards for sulphur oxide and nitrogen oxide emissions, shipping companies are offloading older vessels to cut costs.

Owners are turning to scrubbers installations as they have been a popular solution due to their capability to bring premiums to owners who continued burning high sulphur fuel oil (HSFO) against very low sulphur fuel oil (VLSFO).

According to a recent report by Acumen Research and Consulting, the global marine scrubber market is estimated to achieve a market size of $16.38 billion by 2030.