Seglem in JL fleet swoop

J Lauritzen has completed its second fleet sale in four months after disposing of its shuttle tanker business to Knutsen NYK Offshore.
Trygve Seglem

Trygve Seglem

The Trygve Seglem-led owner is likely to drop two of the three vessels down to its MLP spin-off KNOT Offshore Partners, a statement said.

Seglem says the three Lauritzen ships represent a good strategic fit for his company.

He points out two of the vessels were built at Cosco Nantong, a yard it is familiar with, and a third will slot comfortably into its pool should an existing charter not be extended.

“Twenty-thirteen has been a very good year for KNOT, both operationally and financially.  Consequently, our access to capital, both debt and equity, has improved markedly and we intend to pursue further growth opportunities in 2014,” Seglem added.

Second cash injection

Lauritzen says the sale of the 59,300-dwt Dan Cisne (built 2011), Dan Sabia (built 2012) and the 44,900-dwt Dan Eagle (built 1999) will boost its cash position by around $65m.

Jan Kastrup-Nielsen, president of Lauritzen, said: “When exiting shuttle tank we will have concluded our strategic objectives of adjusting our business portfolio while providing further funds for developing our core bulk and gas activities.”

Dan Cisne and Dan Sabia are attached to 12-year bareboat contracts with Transpetro, and are likely to be sold on to the listed arm of Seglem's group.

Dan Eagle is on a time charter with Petrobras which expires in August 2014, after which it could join Kuntsen’s handysize shuttle tanker pool, which already has four similar vessels operating today in the North Sea.

Late last year Lauritzen recorded a $125m cash gain on the sale of its products tankers to Hafnia. It invested $10m in the buyer as it listed on Oslo’s over the counter market.

Lauritzen entered the shuttle tanker business a decade ago when it took over Quantum Tankers.