Concordia Signs Three Timecharters

Tuesday, May 20, 2008

Concordia Maritime have entered into time charter contracts for three of its P-MAX new buildings with ST Shipping and Transport, a subsidiary of Glencore. The contract period is three years for each vessel upon delivery from the shipyard. In total Concordia Maritime´s P-MAX fleet consists of ten vessels, of which six have been delivered and the four remaining will be delivered in 2009 and 2010. With the conclusion of the above three contracts for vessels to be delivered in 2009 and 2010 the entire fleet is committed to time charter contracts. ST Shipping and Transport is the shipping arm of Glencore, one of the world´s largest companies in the area of oil trading and other commodities.
“We are very pleased to have concluded this transaction with ST Shipping and Transport. They have a large shipping operation and we view them as being an innovative and solid provider of oil transportation – a good and interesting customer for long term business” says Concordia Maritime President Hans Norén.

”Since the sale of the V-MAX vessels in 2004 we have had a solid and strong financial position, which is further strengthened by this transaction. The purpose of securing the vessels in our new building program on long term charters is twofold. Steady and solid cash flows of course but it also helps us in our efforts to develop a deeper customer relationship, such as with ST Shipping now. Another example is the oil- and energy major TOTAL which since before has four of our P-MAX on long term contracts” says Financial Manager Göran Hermansson.

“These contracts mean that Concordia Maritime will have yet more stability and ability.
Stability in terms of a really good solid financial base with steady cash flows and a strong balance sheet. Ability to react and act swiftly when it comes to business opportunities and the further growth and development of the company. This is particularly relevant for the next couple of years when we believe the market will be weak” concludes President Hans Norén.