World News
DHT Holdings to Retrofit Eight More Tankers With Scrubbers
Tanker firm DHT Holdings is set to retrofit scrubbers to eight more of its ships.
The firm has committed $25 million to the retrofit programme, with installations scheduled for between the fourth quarter of this year and the first quarter of 2023, it said in an earnings release on Thursday.
That averages at $3.13 million per scrubber installation. Scrubber installations for VLCCs have been quoted at as much as $6 million apiece in the past.
The vessels to be retrofitted are the DHT Colt, DHT Jaguar, DHT Leopard, DHT Lion, DHT Panther, DHT Puma, DHT Stallion and DHT Tiger. The vessels are all VLCCs, built between 2015 and 2018.
"The combination of lower cost and the current higher fuel spreads makes this a compelling investment," the company said in the statement.
"The investment will be funded with liquidity at hand hence no new debt will be issued.
"Following the completion of this project, the Company will have 23 vessels fitted with scrubbers."
The price spread between VLSFO and HSFO -- a measure of the fuel-price savings to be made by using a scrubber with HSFO -- has widened considerably this year since the Russian invasion of Ukraine.
The global average spread stood at $240.50/mt on Wednesday, according to Ship & Bunker pricing, compared with $101.50/mt a year ago.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 647.00 | 8.50 | 779.00 | 29.50 |
| Rotterdam | 608.00 | 11.00 | 764.50 | 24.50 |
| Houston | 636.50 | 8.00 | 807.50 | 5.00 |
| Fujairah | 649.50 | 4.00 | 888.50 | 11.50 |
| Global 20 Ports Average | 665.50 | 6.50 | 870.50 | 14.50 |
| Global 4 Ports Average | 635.50 | 3.50 | 810.00 | 17.50 |
| Global Average Bunker Price | 725.00 | 2.50 | 925.50 | 8.00 |
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