ExxonMobil Asia Pacific, a subsidiary of Exxon Mobil Corporation XOM, has sealed a two-year charter deal with Singapore’s Sinanju Tankers Holdings for renting a bunker tanker, Marine Vicky, which is currently under construction.
Singapore maritime is set to experience the first bunker tanker motorized by Liquefied natural gas (LNG) and delivered by Sinanju, a provider of marine fuel transportation services.
The vessel with a capacity of 7,990 deadweight tonnes (dwt) will be built to supply marine fuels of ExxonMobil with lower sulphur content, beginning first-quarter 2020, to the ocean-bound marine vessels within the port areas of Singapore.
This shows that ExxonMobil strictly follows the newly revised rule of International Maritime Organization ('IMO') to restrict the sulphur content in marine fuels from the present 3.5% to 0.5% effective 2020 onward.
Commenting on this charter agreement, Sinanju’s managing director stated that it is promoting and encouraging the use of LNG to fuel the bunker tankers to minimize the emission of greenhouse gases.
Marine Vicky, which is currently under construction at the shipyard of Keppel Offshore and Marine in Nantong, China, is a bunker tanker measuring 103 meter in length and 19 meter in width.
With the completion of its construction by year-end, Marine Vicky will increase the fleet size of Sinanju, which currently owns 13 bunker tankers.
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Zacks Rank & Key Picks
ExxonMobil carries a Zacks Rank #5 (Strong Sell).
Better-ranked players in the energy space include Enbridge Inc ENB, Dril-Quip, Inc. DRQ and World Fuel Services Corporation INT, each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Enbridge earnings beat the Zacks Consensus Estimate in three of the last four quarters.
Dril-Quip earnings beat the Zacks Consensus Estimate in three of the previous four quarters.
World Fuel Services earnings beat the Zacks Consensus Estimate in all the trailing four quarters.
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