Bruton Secures $105,700/Day Rate for Second New VLCC Newbuilding
Key Takeaways
- •Bruton has fixed its second VLCC newbuilding, the Mount Horizon, at a net rate of $105,700 per day on a 12 to 15-month charter with delivery expected in mid-November from New Times Shipbuilding.
- •The first two Bruton VLCCs have been fixed at an average rate of approximately $101,000 per day, projected to generate annualised free cashflow to equity of $0.71 per share.
- •Bruton plans to split its 12-ship VLCC programme into two separately listed companies, retaining the first four vessels as a dividend-focused entity and transferring the remaining eight to a forward-delivery vehicle.
- •The company has committed approximately $1.47 billion to the full 12-vessel programme, with one VLCC currently operating and eleven under construction at New Times Shipbuilding and CIMC Raffles through the third quarter of 2029.
- •The charter rate secured for the Mount Horizon exceeds both prevailing spot-market benchmarks for modern VLCCs and the initial $95,000 per day fixed on Bruton's first vessel, the Mount Vision.
Bruton, the Oslo-listed tanker owner backed by Norwegian shipping investor Tor Olav Trøim — known for his role in building Golar LNG and other maritime ventures — has fixed its second VLCC (Very Large Crude Carrier) newbuilding at a net rate of $105,700 per day.
The company has placed the 300,000 dwt Mount Horizon on a fixed-rate charter lasting between 12 and 15 months with an unnamed counterparty. The vessel is scheduled to deliver from China's New Times Shipbuilding in mid-November. The rate secured places the vessel comfortably above prevailing spot-market benchmarks for modern VLCCs, which have fluctuated considerably in 2024 amid shifting OPEC+ production policy and redrawn crude trade flows linked to sanctions on Russian oil.
The new charter deal comes in above the initial employment secured for Bruton's first VLCC, the Mount Vision, which began a 3+1+1-year charter in July. The first nine months of that contract were fixed at $95,000 per day net, after which the ship will transition to an index-linked structure with scrubber benefits.
Bruton stated that its first two vessels have now been fixed at an average rate of approximately $101,000 per day. At that level, the pair is expected to generate annualised free cashflow to equity of $0.71 per share. The company estimates this figure could reach $1.46 per share if the first four vessels achieve the same average rate once delivered.
Bruton is in the process of splitting its 12-ship VLCC programme into two separately listed vehicles. The first four New Times ships will remain with Bruton as a cash-generating, dividend-focused company, while the remaining eight newbuildings will be transferred into a separate forward-delivery vehicle. The structure effectively separates assets with near-term earnings visibility from longer-dated tonnage still years from delivery, allowing investors to value each pool on distinct risk-return profiles.
The company has committed approximately $1.47bn to the 12-ship programme. One VLCC is currently in operation, with another 11 under construction at New Times Shipbuilding and CIMC Raffles, and deliveries running through the third quarter of 2029.
Source: Splash247
