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 | 567.50 | 3.50 | 700.00 | 14.50 |
| Rotterdam | 512.50 | 4.00 | 695.00 | 17.50 |
| Houston | 556.00 | 6.00 | 679.00 | 1.00 |
| Fujairah | 562.50 | 2.50 | 755.00 | 0.00 |
| Global 20 Ports Average | 589.00 | 3.00 | 764.50 | 3.50 |
| Global 4 Ports Average | 552.00 | 3.00 | 699.00 | 2.50 |
| Global Average Bunker Price | 635.50 | 1.00 | 811.50 | 11.00 |
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