Odfjell Exits European Short Sea Market Following Sale

Stolt Tankers B.V., a division of Stolt-Nielsen Limited, has been announced as the buyer for three parcel tankers sold by Odfjell Tankers AS. The sale marks Odfjell’s exit from the European short sea market.

Stolt Tankers B.V.,has agreed to purchase the Bow Balearia, Bow Bracaria and Bow Brasilia three 5,800 dwt fully stainless steel tankers.  The ships, which were built in 1997-1998 and are sister ships of three tankers currently operated by Stolt Tankers, are expected to join the Stolt-Nielsen Inter-Europe Service by the end of August 2015.

The three ships were the last remaining vessels in Odfjell’s trade in the European short sea market. The tankers are being divested as a part of the company’s cost-cutting and efficiency program which includes exiting from unprofitable trades. The sales will result in an accounting loss for Odfjell, but the company has said the transaction will have a positive effect on the group’s liquidity and profitability.

Commenting on the purchase, Hans P. Feringa, President of Stolt Tankers, said, "We are pleased to have acquired these well priced, high quality assets, which enhance the scale efficiency of our fleet of European regional parcel tankers.  The ships are a perfect fit with our current fleet, the contract portfolio we serve, and our goal of providing our customers with the quality, reliability and service flexibility that their supply-chain needs demand."

The three ships are highly specialized, with 20 duplex stainless steel tanks, ICE class 1A and fitted with nitrogen generators.  They are sister ships to Stolt Tankers' R5 class, which consists of Stolt Razorbill, Stolt Kingfisher and Stolt Pelican.

Further terms of the transaction were not disclosed.