SITC Shipowning, a wholly-owned subsidiary of SITC International Holdings, entered into a sale and purchase agreement with SITC Container Shipping on April 27. This transaction involved the disposal of SITC Subic Shipping for a consideration of $12.16 million.
The firm owns the SITC Subic, a container ship built in 2019 that operates on international trade routes. Upon completion of the sale, SITC Shipowning immediately leased the vessel back through a bareboat charter agreement for a term of 15 years.
SITC International Holdings stated that the daily charter fee for the vessel is $2,221.54. This total charter fee matches the disposal price and was paid as a single lump sum in cash on the date of the agreement.
Mainland China regulations permit only domestic shipping companies to operate the route between the mainland and Taiwan, according to the group.
SITC International Holdings stated that the arrangement enables the group, “to continue to operate the mainland China-Taiwan route with minimal disruption.”
SITC Subic Shipping posted a profit after taxation of $2.66 million for the year ended December 31, 2025. This result followed a profit of $0.64 million recorded during the previous year.
The vessel will specifically engage in operations on the route between mainland China and Taiwan following the disposal.
SITC International Holdings noted that the 15-year lease represents the remaining useful life of the ship.
The group said it expects to recognise no actual gain or loss from the disposal and lease back arrangement and that the proceeds from the sale will be used to finance the charter fees.