World News
Widening VLSFO-HSFO Price Spread Sees Dorian LPG Pay Back 48% of Scrubber Costs
Shipping company Dorian LPG has reported improved earnings for its scrubber-equipped vessels on the back of the widening spread between VLSFO and HSFO.
The company saw improved voyage economics of $3,500/day in the fourth quarter of 2021 for its scrubber-equipped fleet, with that figure rising to more than $6,000/day more recently, it said in an earnings report published on its website this week.
The company's scrubber investment programme "has cumulatively paid back 48% of total CAPEX, notwithstanding the COVID-19 outbreak and the oil-market collapse events in calendar 2020," it said in the statement.
The firm paid an average of about $150/mt less for HSFO than for VLSFO in the fourth quarter.
The global average VLSFO-HSFO spread was about $122/mt in the fourth quarter, according to Ship & Bunker's G20 Index of prices at 20 leading bunkering ports, up from about $104/mt in the third quarter.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 579.00 | 12.50 | 633.00 | 0.00 |
| Rotterdam | 520.50 | 4.50 | 619.50 | 9.00 |
| Houston | 507.00 | 1.50 | 636.50 | 2.00 |
| Fujairah | 567.50 | 10.00 | 763.50 | 5.00 |
| Global 20 Ports Average | 591.00 | 6.50 | 726.00 | 2.50 |
| Global 4 Ports Average | 543.50 | 7.00 | 663.00 | 3.50 |
| Global Average Bunker Price | 635.50 | 8.00 | 803.50 | 2.50 |
Popular Now More
-
Sep 25The firm has arranged an $80 million debtor-in-possession financing facility to fund a restructuring process and allow it to continue normal operations in the meantime. -
Sep 26Gulf Petrochem FZC is seeking a reversal of the sale and AED 100 million in damages, a source tells Ship & Bunker. -
Sep 25The new manager was previously a senior commodity market manager for EY in London.