A potential 68% paper gain on a VLCC sale underscores the extraordinary asset value appreciation in the crude tanker market, driven by sky-high rates in the Arabian Gulf, according to Splash247.
Lila Global, the shipowning arm of Anil Sharma-led GMS, appears to be closing in on a striking 68% gain from the sale of the scrubber-fitted Lila Kochi. Several broking reports link the 2008-built, 314,000 dwt Kawasaki-built VLCC to a deal at around $79m to undisclosed interests, Splash247 reported. The vessel was acquired in May 2025 as M. Star for $47m. Splash247 noted it has not been able to confirm the transaction. With rates in the Arabian Gulf running at sky-high levels, speculation naturally turns to Sinokor, the usual Korean name active in the semi-vintage VLCC space, according to Splash247.
Repeat Performance on VLCC Assets
If confirmed, the deal would be the second time in months that Lila Global has booked more than a 50% asset increase within a short period. In April, Splash247 highlighted another savvy VLCC play by Lila Global. COSCO sold the Japanese-built, scrubber-fitted Cosgrand Lake (299,000 dwt, built 2006) to Lila Global, which paid $35m for the ship. The sale raised eyebrows at the time, coming in well below the $40.67m valuation assigned by VesselsValue.
Fast forward to April, the same vessel — renamed Lila Jamnagar — was valued at $54.38m by VesselsValue, implying a roughly 55% increase. As of today, the pricing platform values the vessel even higher, at $58.24m, according to Splash247.
Implications for the Tanker Market
The reported gains highlight the dramatic surge in VLCC asset values, underpinned by robust crude tanker demand and tight vessel supply. Splash247 described the current environment as one where Arabian Gulf rates are at "sky-high" levels, a factor that is directly supporting second-hand vessel prices. For logistics operators and shippers of crude oil, such asset appreciation signals a sustained period of elevated freight costs on key eastbound and westbound routes, as owners capitalize on strong earnings to realize capital gains.
The ability of a mid-life VLCC to appreciate by over 50% in under a year reflects a market where operational earnings are high enough to justify rapid price escalation. While the specific buyer of the Lila Kochi remains undisclosed, the pattern of rapid asset flipping by Lila Global suggests deep confidence in continued robust tanker fundamentals through 2026 and beyond.
Watch List
- VLCC spot rate trajectory: Continued sky-high rates in the Arabian Gulf will determine whether further asset sales materialize.
- Sinokor's next move: As a known buyer of semi-vintage VLCCs, any further activity by Sinokor will signal sustained demand for tonnage.
- VesselsValue updates: The pricing platform's current valuations for Lila Jamnagar at $58.24m and the newly reported Lila Kochi deal will be closely watched for confirming the 68% gain.
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