Market

Semi-refrigerated / ethylene carriers

This sub segment includes semi-refrigerated and ethylene carriers from 8,000 cbm and up. The group had six ships in this sub segment where one is on a long term TC, while the other five has been operating in the spot marked, on short term TC and on consecutive voyage contracts.

The "Clipper Harald" is on a time charter (TC) until July 2019, and the charterer has an option to extend the contract for an additional eighteen months. This contract was extended by 5 years in 2013, commencing in July 2014, based on "Clipper Harald" retrofitting exhaust gas cleaning equipment (Scrubber) during the fall of 2014, enabling the vessel to comply with new emission regulations from January 2015.   

LGC/MGC

This sub segment is defined as fully refrigerated LPG ships from 59,000 – 60,000 cbm. The fleet consist of 9 LGC ships, where 3 were delivered in second and third quarter 2015. In addition one MGC of 38,000 cbm delivered in fourth quarter 2015 is also included in this sub segment. All ships operate on TC with varying length.  

The LGC newbuilds represent a new type of LGC, with a shorter hull to avoid waiting time in certain areas, and there is considerable amount of development done in order to create the most energy efficient vessels possible. Changes including hull shape, propulsion technology, antifouling technology and cargo systems. Furthermore, the newbuilds are the first LGC LPG carriers in the world with fully integrated exhaust gas cleaning system for both the main and auxiliary engines. This means that the ships comply with all existing environmental standards in Emission Control Areas (ECA) from 2015, and the new expected global standards in 2020.

The average earnings on TC basis showed a continuous positive trend with improvements from 2014, where earnings for 2015 were about 20% higher compared to 2014. The significant increase comes from better contracts for existing ships, as well as very good contracts for the newbuilds delivered in 2015. The LGC segment has benefited from the strong LPG market, and from favourable changes in trade patterns for Ammonia.

VLGC

This sub segment is defined as fully refrigerated LPG ships of 75,000 – 84,000 cbm. Solvang has a total of 5 ships in this sub segment with further two newbuilds in order. The group has two Panamax VLGC ships of 75,000 cbm, one VLGC of 82.000 cbm, and two VLGC ships of 84.000 cbm.

The Panamax VLGC’s are purpose built for transporting LPG from the Atlantic Ocean and Gulf of Mexico to the west coast of Central America. As a result of these features, the Panamax VLGC’s have achieved better TC earnings than the VLGC fleet in general. The "Clipper Victory" is on TC to August 2016, while the "Clipper Sirius" is on TC to January 2017.

The 82,000 cbm VLGC "Clipper Sun" is on a TC until October 2016. "Clipper Quito" a 84,000 cbm vessel, is on TC to December 2016, and the "Clipper Posh", a 84,000 cbm vessel, is on TC to December 2018.  

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