Neptune Orient Lines completes exit from tanker shipping

Neptune Orient Lines completes exit from tanker shipping    Singapore-based Neptune Orient Lines has reached a conditional agreement to sell its product tanker and bunkering business, Neptune Associated Shipping Pte Ltd., to a subsidiary of Hong Kong-listed oil services company Titan (Holdings) Ltd., for $55.1 million. The sale of Neptune Associated Shipping, due to be completed next month, marks Neptune Orient Lines’ complete exit from tanker shipping.
   It follows an eight-month competitive auction sale conducted globally, involving bidders from Asia, Europe and the Americas, the company said.
   Last April, Neptune Orient Lines also sold its main tanker arm, American Eagle Tankers, to Malaysia International Shipping Corp. Bhd., for $445 million in cash.
   The latest sale includes a 22-strong tanker fleet comprising three medium-range product tankers, nine coastal tankers and 10 harbor tankers with a total capacity of 205,000 deadweight tons.
   Neptune Orient Lines will make a capital gain of about $8 million on the sale. It will use the proceeds from the sale to reduce debt.
   “The divestment of Neptune Associated Shipping is another key step in our strategy to focus on, and build, our core capabilities in global transportation and logistics,” said David Lim, chief executive officer of Neptune Orient Lines.