Cobas AM: Nueva Gestora de Francisco García Paramés

• No hay superciclo: "pollo a la cazuela" como dices tú, te dan un precio justo pues vendes y te quitas de problemas... y ya cuando lo veas más claro ves que haces
• Hay superciclo (creo que casi todos apostamos por esto): puedes tener una chatarra que va a ganar dinero dos años (hasta que se nivele oferta-demanda) y luego a la basura o puedes tener buenos barcos que desde ya son rentables, en superciclo les sacas muchísima pasta y los dejas medio pagados y, cuando se estabilice oferta-demanda aún te sirven

Omar Nokta -- Clarksons Platou Securities -- Analyst

Yes. It does seem just as simple as that. I do have a follow-up. Obviously, you've only got $14 million of net debt per ship, which is clearly below scrap value, giving you a lot of flexibility there.

With regards to the financing of the two VLCCS. You mentioned DHT-style financing, can you give maybe just some further color on what that is, maybe in terms of whether it's term duration, that type of thing?

Trygve Munthe -- Co-Chief Executive Officer

Sure. What we typically want to do is to borrow up to around $2.5 million per year of remaining economic life. So for a five-year-old ship, we figured is 15 years left in them, and 15 times $2.5 million is $37.5 million. And with that said, then the annual installments to repay the loan based on the mortgage financing would be $2.5 million.

So a 20-year profile on the loans. And as far as the tenor of the loans themselves, five years is the industry standard. The last two big ones we did over six years. So we certainly try to stretch it as much as we can.

But the point is that we're not really looking at a percentage of value when we borrow money. We look at how much we are comfortable to commit to in terms of debt service on an annual basis in order to keep our cash breakevens as sharp as they are. So that's what we mean with the DHT-style financing.

Jon Chappell -- Evercore ISI -- Analyst

OK. So if I look at Slide 13 then and how you've managed the cycle quite well. And then we get to that point where the right side of this starts to turn up significantly and those opportunities haven't presented themselves. At what point do you maybe change your capital return policy because you've missed the opportunity to invest in the business and don't want to do it in any manner, but in a prudent way.

Svein Moxnes Harfjeld -- Co-Chief Executive Officer

I think this is an important point because, of course, if the market turns and if we haven't been able to buy more ships, we have 29 VLCCs ready to roar and generate a lot of money. And our capital allocation policy says minimum 60%. So it doesn't prevent us from then thinking differently about this as we go forward. So it's a bit hypothetical.

I think we think we should be able to invest a bit more this year and people might be sellers for different business. But I think keep in mind, it's minimum 60%.

Svein Moxnes Harfjeld -- Co-Chief Executive Officer

I think our countercyclical strategy typically would involve a desire try to sell older ships when the market is very strong. But during this last upcycle, values didn't appreciate as much as the earnings opportunities. So we managed to secure time charters on several of the older ships that we have that far outstripped sort of the opportunity to sell. So we elected to keep the ships and earn moneys.

And as an example, our 2004 build ships were on one-year time charters, earning money is in the high teens of millions each, which, of course, was a much greater benefit to the company as opposed to selling them. But of course, we are mindful that some of the ships are getting older. They are all quality ships and certainly have additional opportunities to dance in the recovering market. But there will also be candidates for potential divestiture if those opportunities come.