Sale of Positions in Chartered-in Suezmax Vessels

Concordia Maritime is selling the positions previously taken in four chartered-in Suezmax vessels. The economic value corresponds to an EBITDA of  $5.3 million.

As part of the fleet positioning ahead of the gradually stronger market that was expected, Concordia Maritime participated in period charters of four Suezmax tankers. Concordia Maritime’s share was 50 percent. Stena Bulk accounted for the remaining 50 percent and the owner of the ships also had a profit-sharing entitlement.

As anticipated, the stronger market has now materialized and the positions have a clear economic value. Concordia Maritime has today agreed with Stena Bulk to sell the shares in the above-mentioned period charters January 1 2019 to the end of the charter period. This means that the economic value of the positions, USD 5.3 million, will be realized during Q4 2018. The valuation is based on the companies’ share of the difference between the cost of the period charter and the estimated income from these positions.