Draft:Hunter Group ASA

Hunter Group ASA is a publicly listed investment company specializing in the maritime and energy sectors.

In December 2023 Hunter Group ASA entered into a three year back-to-back timecharter for an ECO design, scrubber fitted VLCC at a rate of USD 52,500 per day. The vessel was immediately chartered out again at an index linked (TD3C) contract. In January 2024, the company announced a similar transaction at a charter in rate of USD 51,000 per day and out at an index linked contract.

In connection with the VLCC charters Hunter Group ASA completed an equity issue in December 2023 and another in January 2024.

According to the company, the rationale behind the transactions were to capitalize on the price dislocation between vessel values and time charter rates. The orderbook for VLCC’s is the lowest it has been for more than 30 years and a large portion of the fleet is approaching retirement age.

Prior to entering into the VLCC charters, Hunter Group ASA ordered, supervised the construction, operated and later sold 8 scrubber fitted ECO design VLCCs from DSME in Korea. All vessels were fitted with «scrubbers» from Wartsila

Management
Erik Frydendal was hired as CEO in May 2018. Morten Eivindssøn Astrup is Chairman of the Board. He took over as Chairman of the Board as Henrik August Christensen stepped down in March 2023.

History
Hunter Group was formerly Badger Explorer ASA, a Norwegian oilservice company which developed a «badger» - a tool intended to explore the presence of hydrocarbons through the use of a drilling robot outfitted with logging sensors. This intention was to reduce risk, cost and complexity compared to using and operating an oil rig. Badger Explorer was listed at the Oslo Axess in 2007 under the ticker BXPL.

In 2017 the company changed its name to Hunter Group and continued to focus on oil services. In February 2018 Hunter Group announced that it would acquire all outstanding shares of Ståle Kyllinstads company IKM Subsea and Technology, which would have made Kyllinstad Hunter Group’s largest shareholder. Investor Arne Fredly then launched a counteroffer, and successfully blocked Hunter Group’s attempt to acquire IKM Subsea and Technology. Fredly became the company’s largest shareholder following the fight for control.

In addition to the cash in the company, Hunter Group also owned Dwellop AS, a small oilservice company. This was sold back to its founders. In April 2018 Hunter Group became a ship owner, when Fredly entered into a contract to buy 4 VLCCs with an option for 3 more. The deal was valued at around USD 600 million. Later the company ordered one more vessel, bringing the total number of vessels to 8. The last ship was delivered in the summer of 2020.

The vessels where built at DSME in South-Korea from 2018-2020. All the vessels were 300,000dwt and had exhaust gas cleaning systems (“scrubbers”) from Wartsila in order to comply with the stricter emission regulations known as IMO 2020 Having a fleet consisting of only eco design vessels with scrubbers was a key element of the company’s businessplan, as it would allow the vessels to use the cheaper HFO (Heavy Fuel Oil) fuel instead of the more costly compliant fuel. The entire fleet carried a Marshall Island flag and carried the name of Norse Goddessess.

«Hunter Atla»

«Hunter Saga»

«Hunter Laga»

«Hunter Freya»

«Hunter Embla»

«Hunter Disen»

«Hunter Idun»

«Hunter Frigg»

Hunter Group was responsible for the building supervision for all 8 vessels, in addition to 4 vessels from Hartree Maritime Parthers. All vessels were delivered on time and on budget. Initially Hunter Group placed the vessels with TI for commercial management, but later placed them on TC contracts before the vessels were sold. The last vessel was sold in 2022.

In January 2023 Fredly sold his shares in the company to the management and announced his resignation from he board. In March 2023 Hunter Group entered into a joint venture with DNV for the development of a ship based transportation solution for CO2. Morten Astrup was elected as Chairman of the Board at an extra ordinarly shareholdersmeeting later that month.

In November 2023, Hunter Group announced the completion of the first phase of the development of the CCTS (Carbon Capture Transport and Storage) solution. The project entailed the use of spesiaized vessels for CO2-transport. Due to challenges in the CCTS market, as well as high ship prices, the company communicated that while it remains positive to the CCTS market, a long term contract will be needed in order to proceed with the project.