Bruton to split 12-ship VLCC programme into two listed vehicles

Bruton, the tanker vehicle backed by Tor Olav Trøim, is splitting its 12-ship VLCC programme into two separately listed companies as its first supertanker enters service.

The Oslo-listed group will hold the first four VLCCs, all from New Times Shipyard, inside Bruton Limited, which it presents as a monthly dividend payer supported by near-term cash flow. The remaining eight ships, four more at New Times and four at CIMC Raffles, will be spun into a separate Bermuda-based company offering exposure to forward-delivery tonnage.

The demerged entity is expected to list on Euronext Growth Oslo by the end of August, while Bruton plans to move its own listing to Euronext Expand or Euronext Oslo Børs, with completion targeted by the end of September.

The full programme of 12 VLCCs was ordered for $1.47bn, with around $216m of equity raised, roughly 15% of the total. The first four vessels are due between July 2026 and October 2027, and the other eight from the first quarter of 2028 to the third quarter of 2029.

Bruton has taken delivery of its first VLCC, the Mount Vision, from New Times. The ship begins a three-year time charter, with two one-year options, to an international trading company this month; the rate is index-linked, though the first nine months were fixed at $95,000 a day when the deal was agreed in May. The company has also arranged sale-and-leaseback financing with a Chinese leasing house covering the first four New Times newbuildings.

Lars-Christian Svensen has been appointed interim chief executive, replacing Gunnar Eliassen. Svensen also heads the Trøim-backed 2020 Bulkers and Himalaya Shipping. Analysts at SEB called the demerger value-crystallising, suggesting the cash-generating company should trade in line with listed tanker peers, while the eight-ship forward vehicle would likely sit at a deeper discount given its lack of current earnings.