Brightoil signals return to the shipping sector, starts reorganisation of debt
Hong Kong-listed Brightoil Petroleum (Holdings) Limited (Brightoil) on Wednesday announced several developments signalling its return to the shipping sector and reorganisation of debt.
It has decided to terminate the commercial negotiation of the sale of 15 vessels, it said in a note on the Hong Kong Stock Exchange.
“The Company notes that since early October this year and up to current date, the Very Large Crude Carriers (VLCCs) sector is experiencing a strong up-going market,” it notes.
“Baltic Tanker Index (TD3C) from Arabian Gulf to China has reached USD 4.26 mil equivalent to TCE USD 54,000 per day; compared to that of the first quarter of 2018 with an average of TCE USD 18,294 per day and the second quarter of 2018 with an average of TCE USD 14,354 per day, the Group believes that the strong market trend will continue in 2019 and wants to continue pursuing the shipping business and maintains stable cash income for the Group.”
Brightoil Shipping Singapore Pte. Ltd. (BOSS) and Shell International Eastern Trading Company, meanwhile, on Friday (16 November) entered into charter agreements in relation to BOSS’s VLCCs and Aframax tankers, adds Brightoil.
According to the company, BOSS has a total of five modern VLCCs and four Aframax tankers.
“The average VLCC fleet age is less than six years old and is trading worldwide. The average Aframax fleet age is less than nine years old and is trading far east,” it notes.
“These agreements between BOSS and Shell will commence by the end of this year. This indicates the strong commitment from BOSS to form a strategic relationship with Shell.”
Moving forward, Brightoil said it is working with a lead bank under the overall guidance and coordination lead by the People's Bank of China to formulate a package for financing and debt optimisation adjustment plans.
The banking development, currently at the “preliminary stage”, will be focused on optimising the company's debt structure while enhancing liquidity.
Petrolimex Singapore Pte Ltd has submitted a winding up petition against Brightoil Petroleum (S’pore) Pte Ltd at the High Court of Singapore; the hearing of the winding up application is scheduled at 10.00 am (Singapore time) at the Open Court at the Singapore High Court on 23 November, 2018.
Related: Brightoil: Plans to sell Zhoushan oil storage terminal, 15 vessels
Related: Petrolimex in winding up application against Brightoil at Singapore High Court
Photo credit: Brightoil Petroleum (Holdings) Limited
Published: 22 November, 2018
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