Taiping & Sinopec Financial Leasing enters into a sale-and-leaseback agreement worth $36 million USD with Euronav for one VLCC oil tanker vessel

Project narrative

On February 23, 2021, Taiping & Sinopec Financial Leasing Co., Ltd. — a Chinese financial services and leasing company jointly owned by state-owned China Petrochemical Corporation (Sinopec) and majority state-owned Taiping Life Insurance Co., Ltd. — entered into a sale-and-leaseback agreement worth $36 million USD with Euronav NV — an Antwerp, Belgium-based and incorporated international shipping company specializing in the transportation and storage of crude oil listed on the New York Stock Exchange (NYSE) and Euronext Brussels — for one Very Large Crude Carrier (VLCC) oil tanker vessel. The VLCC was 'Newton', formerly 'Maersk Newton', a vessel built in 2009 with a deadweight tonnage (DWT) of 307,284. The vessel was sold for $36 million USD and then delivered to Taiping & Sinopec Financial Leasing on February 22, 2021, and were then leased back to Euronav under a 36-month bareboat contract at an average rate of $22,500 USD per day; the vessel would be redelivered to Taiping & Sinopec at the conclusion of the contract, though Euronav had an exercisable purchase option. The proceeds of the agreement generated a capital gain of $2.4 million USD for Euronav and were used in part, to repay existing debt, after which there was $19.0 million USD in free cash available for it. In January 2024, Euronav Luxembourg declared it intended to use the purchase option to repurchase the tanker from Taiping & Sinopec TJ11 Shipping Leasing Co. Then, in March 2024, Euronav Luxembourg sold 'Newton' to Sinokor Merchant Marine, reportedly for a large profit.