"San Demetrio" was repaired and returned to service, but the U-boat U-"404" torpedoed and sank her in the western Atlantic off Virginia in 1942 with the loss of 19 lives. In 1942 the Ministry of War Transport placed a number of Empire ships under Eagle Oil and Shipping's management. One was sunk by enemy action in 1943 but after the war the company bought two of the surviving ships from the ministry. The company also bought two T2 tankers that had been built in the USA. The company further renewed its fleet with 16 new ships between 1950 and 1960, and maximum tonnages steadily rose towards the end of the decade. The Royal Dutch Shell parent group absorbed Eagle Oil and Shipping in 1959.