vafias group of shipping companies

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22 | MARITECH NEWS | MAY - JUNE 2012
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Vafias group of shipping
companies
T
he last two years have been
pivotal for the Vafias group
of shipping companies.
Stealth Maritime (the tanker
arm of the group) has taken delivery
of its last 3 newbuilting Aframaxes
(2 from Samsung and 1 from DSME)
after taking delivery of 10 50,000
DWT IMO Product tankers from SPP,
Sungdong and Hyundai Mipo; and
now boasts a fleet of 21 modern
tankers equally split between crude
Afras and Product tankers. Moreover,
all the ships are fixed on long term
charters to the likes of Shell, Navig8,
Vitol, Glencore, Heidmar, AET, Ugland
and others. The average TC equivalent
for the MR charters is region $21,000
daily and the average TC equivalent
for the Aframax charters is region
$28,000 per day!
However, most of the ships were
bought during the booming years
between 2006 and 2008, and due
to that, the paper loss on the value
of these investments is region U.S. $
400 million! Moving on to the gas
arm, ie Stealthgas, there the company
is going from strength to strength
since the combination of rising LPG
freight rates coupled with the fact
that there are very few nb’s in the
pressurized Handysize LPG segment
creates an ideal environment for the
largest owner of LPG ships worldwide.
Stealthgas has sold about 10 ships
in the last 24 months, but has just
taken delivery of its last newbuilding
from Japan, namely the GAS ESCO,
which was the last of 10 ships ordered
by the company at a specialized yard
in Tokushima, Lapan. Moreover, freight
rates have increased by about 30 pct
since the lows of 2009 and in early
May the company announced 10 new
charters, 9 for its LPG’s and 1 for one
of its Product tankers.
The average of the LPG charters
was approximately $ 11,000 daily,
whereas the MR was fixed by a private
company belonging to Mr Harry Vafias
at $15,800 for 4 years TC, which is
approximately $ 2,300 daily above
market, showing his support for his
own listed co. and by actually subsidizing his own co. for the benefit
of his shareholders and Stealthgas’
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The president of Panama, Mr Ricardo Martinelli Berrocal, flanked by Mr Nicholas and Harry Vafias
Another of brave’s Capesizes, the BRAVE HARALAMBOS, named after the founder’s father (2009 built in Daewoo)
stock price. The share price has increased by a tremendous 80 pct since
November 2011 and is still a great
buying investment since it’s the only
healthy listed gas company trading
at approximately 50 pct discount to
currently appraised NAV!
Stealthgas owns 34 Gas carriers,
3 Product tankers and 1 Aframax,
and enjoys 95% period coverage for
its entire fleet. Stealthgas has been
the only European player to be very
active in the Chinese cabotage trades
and up to 2010 there were at least 4
Stealthgas’ LPGs flying the Chinese
flag and having full Chinese crews
going up and down the Chinese
coast. The group has had historical
links with China from the 80’s, where
all its Bulkers were sent for repairs; it
was the first group to build Aframax
tankers in SWS in Shanghai and over
One of stealth’s Aframaxes crossing the Bosphorus, PRIMO STEALTH (2005 built)
the years has built more than 10 ships,
mainly tankers and Bulkers in various
Chinese yards.
Last but not least, the group reactivated Brave Maritime, that was
left with only 2 just delivered Capes
(1 from DSME and 1 from SWS, that
are on long period charters with an
average TC equivalent of $ 40,000
daily) since the sale of approximately
15 Bulkers between 2004-2008. Brave
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24 | MARITECH NEWS | MAY - JUNE 2012
expects them to be highly sought after
when they deliver in 2014/2015, the
total cost of the order if the options
are declared will be region U.S. $
200 million. Furthermore, Brave has
started to technically manage LPGs to
utilize its highly experienced staff and
already 4 LPGs of its affiliate Stealthgas
are being managed by Brave, while
the vast majority of Stealthgas’ Gas
ships are being managed by Stealth
Maritime.
The Vafias Group which founded
its shipping subsidiary in 1972 has
successfully navigated the volatile
markets over the last three years, has
expanded, has diversified and today
boasts a fleet of 72 ships including
ships on order; making it the 3rd
largest group in Greece by number
of owned ships, total fleet value has
touched $ 2 billion, while the debt has
been kept at manageable levels shade
below U.S. $ 1 billion. Mr Nicholas
Harry Vafias in front of one of stealth VLCC’s in Dubai Drydocks, VL MALIBU (built 1989)
The GAS MYTH; one of the new generation of 10 pressurized Gas Carriers that the
group ordered in Japan (5,000 cbm, built 2011)
Mr Nicholas Vafias
opted to also join the gas rush and
in April ordered 4 new generation
LPGs dubbed the ‘DIAMOND series’
in STX Korea, which were designed in
house in collaboration with Stealth’s
engineers.
The ships feature ice class 1b,
electronic engines, hydrodynamic
hulls, magnetic couplings, water
ballast treatment systems and stainless steel pipings. The management
Vafias, the group’s founder, who has
kept a very low profile over the years,
has lately focused on charities and
non governmental organizations that
assist children in need, was honored
by the Greek Fire Brigade for helping
families of firemen, who died during
the horrific fires of 2007. He has also
been supporting the church’s efforts
to provide meals for the unemployed
and older citizens. £