Harry Vafias powers expansion drive past $1bn with six new tankers
Major Greek shipping family doubles its orderbook with six fresh tankers
Greece’s Vafias family is turning its fleet renewal focus to crude carriers after investing close to $800m over the past three years to expand in the dry cargo, product tankers and gas markets.
Stealth Maritime, the tanker arm of a shipping group with about 110 vessels spread across the five listed and private companies it controls, has ordered six tankers at two separate Hyundai yards.
The total estimated outlay of close to $575m comes at a time when major shipowners are turning their attention to tanker newbuildings.
Several shipping market sources in Europe and Asia relate that Hyundai Heavy Industries (HHI) is tasked with the construction of a pair of 165,000-dwt suezmaxes due for delivery in late 2028 for about $87m each.
Hyundai Vietnam Shipbuilding will construct four coated aframaxes due for delivery at the end of 2028 as well, for about $75m each.
The conventionally-fuelled ‘eco’, vessels will be built to latest, fuel-efficient specifications.
The order at Hyundai Vietnam for the 115,000-dwt aframaxes is formally split between two firm and two optional vessels.
The options, however, are expected to be declared in relatively short order, given tight slot availability at the yard.
Even though the aframaxes will be coated, Stealth is believed to be making the order with a mind to employ the ships in crude trades.
Earnings for such vessels have been performing very strongly recently and analysts expect them to continue to do so in the future.
This applies particularly to modern units, against the backdrop of tougher environmental standards and western sanctions that restrict the use of older ones.
The slower pace of decarbonisation after the IMO failed to adopt its Net- Zero Framework (NZF) is another factor playing into the hands of fuel-efficient but conventionally-fuelled vessels, such as the ones Vafias and several other Greek owners have been ordering.
Greek king of S&P
It is therefore not a surprise to see the Vafias group becoming active in the crude trade — a sector that had not been on the back burner of its investment strategy over the past few years.
According to TradeWinds data, the Greek owner has spent about half a billion dollars on secondhand acquisitions since early 2023 and another $390m on newbuildings.
This investment has gone towards secondhand bulkers, a few secondhand product tankers, as well as into four product tanker and two LPG carrier newbuildings.
It is equally not a surprise to see Harry Vafias pick the Hyundai group to double the size of his current orderbook with its first crude carrier newbuildings in several years.
Yards controlled by the South Korean conglomerate have already built 15 vessels for the Vafias group over the past decade. The latest batch of newbuildings raises that tally to 21.
Vafias has a policy of employing Japanese and South Korean-built tonnage, with vessels of such origin accounting for almost the entirety of the 110-odd ships he currently manages.
The Greek owner’s rationale is that such vessels are more liquid and valuable assets to hold for eventual secondhand transactions, due to their perceived higher quality.
