On Friday an analyst at Arctic Securities, Erik Nikolai Stavseth, noted there is speculation that offshore contractors are looking to convert some of their newbuilding orders as well.
He pointed out that these reports follow a transaction that saw Scorpio Bulkers convert contracts to construct six capes into orders for crude and product tankers just last month.
The forecaster said he wouldn’t be surprised to see this trend continue since the owner sold the newbuildings to affiliate Scorpio Tankers for “a favourable price”
If the call is correct Stavseth argued that owners would likely opt to convert bulkers into suezmaxes, aframaxes and long-range-twos (LR2s) because of their size.
“Moreover,
