Shipowner Bruton has locked a six-figure daily charter rate for its second VLCC newbuilding, fixing the 300,000 dwt Mount Horizon at a net rate of $105,700 per day for a term of 12 to 15 months, according to Splash247.
At a glance: the two charters
The Oslo-listed tanker owner, backed by Tor Olav Trøim, placed the vessel on a fixed-rate charter with an unnamed counterparty, Splash247 reported. The tanker is scheduled to deliver from China's New Times Shipbuilding in mid-November.
The rate on Mount Horizon sits above the initial employment secured for Bruton's first VLCC, the Mount Vision, which started 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 moves onto an index-linked structure with scrubber benefits, according to Splash247.
| Vessel | dwt | Charter | Rate | Timing |
|---|---|---|---|---|
| Mount Horizon | 300,000 | Fixed-rate, 12-15 months | $105,700/day net | Delivery mid-November, New Times Shipbuilding |
| Mount Vision | Not specified | 3+1+1-year | $95,000/day net first nine months, then index-linked with scrubber benefits | Charter started July |
Bruton said its first two ships have now been fixed at an average of about $101,000 per day.
Cash flow from the first two VLCCs
According to Splash247, at the $101,000 per day average the pair is expected to generate annualised free cashflow to equity of $0.71 per share. The company estimates the figure could reach $1.46 per share if the first four vessels achieve the same average rate once delivered.
The 12-ship programme and its split structure
Bruton is in the process of splitting its 12-ship VLCC programme into two 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 company has committed about $1.47bn to the 12-ship programme. One VLCC is in operation and another 11 are under construction at New Times and CIMC Raffles, with deliveries running through the third quarter of 2029.
Implications for shippers and charterers
The charter on Mount Horizon gives shippers and charterers a concrete rate benchmark for modern VLCC tonnage: a 300,000 dwt newbuilding with mid-November delivery has been contracted at $105,700 per day net over 12 to 15 months. That exceeds the $95,000 per day net rate fixed for the first nine months of Mount Vision's charter, and both rates sit above the $101,000 per day pair average reported by Splash247.
The counterparty has not been named, and the vessel will work a fixed-rate charter rather than an index-linked structure, meaning the hire paid on Mount Horizon will not fluctuate with the tanker market during the charter period. Bruton's remaining programme continues to roll out through New Times and CIMC Raffles, keeping new VLCC supply in the delivery pipeline into the third quarter of 2029.
Watch list
- Mid-November delivery of Mount Horizon from New Times Shipbuilding and the start of its 12-15-month fixed-rate charter.
- Behaviour of the remaining 11 newbuildings under construction at New Times and CIMC Raffles, with deliveries running through the third quarter of 2029.
- The transfer of eight vessels into a separate forward-delivery vehicle as Bruton splits its 12-ship programme into two listed companies.
- Whether the first four vessels match the average rate of about $101,000 per day, which would lift annualised free cashflow to equity to a potential $1.46 per share.
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