DHT pens VLCC double

DHT Holdings has confirmed speculation it is ordering VLCCs after signing a contract for two newbuildings in South Korea.
Svein Moxnes Harfjeld, CEO of DHT.

Svein Moxnes Harfjeld, CEO of DHT.

New York-listed DHT is paying $92.7m each for the tankers at Hyundai Heavy Industries, it said in a statement today.

DHT, which was first revealed to be booking VLCCs by TradeWinds in mid-November, will take delivery of the vessels in July and September 2016.

An option for a third vessel for delivery in the fourth quarter of 2016 is also included, the owner said in a statement.

Funding for the tankers is already in place, with a $110m equity issue completed today.

The price falls within the $92.5m to $93.5m range indicated when Metrostar penned two VLCCs at HHI in September. It has since firmed up two options at the yard.

As TradeWinds has reported, VLCC newbuilding interest has spiked amid a recent rate rally and signs of an increase in prices in the absence of fresh orders.

DHT’s expansion plan has proven a hit with investors. Claren Road Asset Management, the Carlyle Group, Tufton Oceanic, Canyon Capital Advisors, Anchorage Capital Group and QVT Financial all took part in the equity issue.

Other names participating include RS Platou, Eika Capital Partners, Oslo Asset Management, Awilco Invest, Odin Forvaltning and Hadron Capital.

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