Trafigura to Spin Out Publicly Traded VLCC Tanker Company Volare Shipping
Commodities trading giant Trafigura is spinning out a newly public company, Volare Shipping, which will be an operator for VLCC tankers. The move comes as the crude oil tanker market is enjoying a major boom, and the new company positions Trafigura for further growth in the shipping sector.
Trafigura highlights that it has built one of the world’s leading shipping operations. It currently manages approximately 500 vessels across multiple segments, including around 250 oil tankers. It reports that the operations execute approximately 5,250 voyages per year across all segments of shipping.
The new company will take over ownership of Trafigura’s current VLCC construction program, initially having a fleet of six Very Large Crude Carriers, each 318,000 dwt, as well as eight newbuild orders which are due for delivery between May 2027 and October 2028. When the fleet is completed, it will have a total capacity of approximately 4.4 million dwt and will be among the youngest and most technically advanced fleets in the publicly traded VLCC sector.
The company is building tankers in China, highlighting that they are dual-fuel ammonia-ready and larger than standard tankers. The vessels can carry greater cargo volumes. They are also fitted with additional internal tank coating and heating systems, enabling them to transport a wider range of cargo types. The ships will be commercially managed by Trafigura.
“Trafigura's growing footprint in the VLCC segment has revealed a clear opportunity to invest further in modern tonnage, alongside outside investors. Long-term fundamentals in crude oil transportation remain supportive, and a dedicated, listed company gives Volare Shipping investors direct exposure to the sector,” said Andrea Olivi, Global Head of Shipping at Trafigura and Chair of the Board of Directors of Volare Shipping.
In connection with the launch of the new company, Trafigura has retained Clarkson Securities and Fearnley Securities to conduct a private placement. The company expects to raise at least $500 million through the offering. The company will remain majority-owned by Trafigura and will apply for listing on Euronext Growth Oslo. They expect to begin trading around October 5.
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The offering highlights that investors will gain exposure to a high-specification fleet of commercially managed vessels. It will also provide access to the capital markets, which Trafigura says will give Volare Shipping “a strong platform from which to grow and expand.” The new company is being incorporated in Singapore.
Analysts noted that the listing comes as the sector is experiencing record rates caused by the disruptions in the Middle East tied to the war with Iran. Speaking to the Financial Times, Trafigura said it expects this is the beginning of a new trend as Middle Eastern oil companies are buying tankers to control their exports. They anticipate it will translate to higher earnings and asset prices. Analysts at Clarksons had recently predicted that tanker operators were at the start of a strong cycle expected to last several more years.
