Stelmar Shipping Acquires Newbuildings

Tuesday, February 11, 2003
Stelmar Shipping Ltd. has agreed to purchase six high specification double-hull Handymax newbuildings being constructed for privately owned Greek shipping interests. These new vessels will be delivered between December 2003 and September 2004 and will reduce the average age of Stelmar's Handymax fleet to 8.2 years from 10.8 years, and the average age of Stelmar's total fleet to 6 years from 7 years. The expected cost at delivery, which includes specifications enhancements, supervision and pre-delivery financing costs, is approximately $177 million. Stelmar will pay a one-time deposit for all six vessels of $23.7 million in cash. A further $6.4 million will be paid in Stelmar stock after registration of the shares with the SEC and no later than March 14, 2003. Stelmar currently anticipates that the remaining balance of the purchase price will be generated from future cash flows and additional bank debt. Stamatis Molaris, Chief Financial Officer of Stelmar Shipping, added, "This transaction is structured in a manner that best preserves Stelmar's financial strength. Based on the 10 year average time charter rates for Handymaxes of $13,750 per day the acquisition could contribute to EPS, on a pro-forma basis, $0.29 in 2004 and $0.49 in 2005. The delivery of the six new vessels, combined with Stelmar's strategy of signing profitable time charters, should enable Stelmar to achieve high utilization rates and growth. Stelmar will continue to actively manage the implementation of this time charter strategy in order to provide our shareholders with both significant earnings visibility and upside potential." The new Handymax tankers will add 280,000 dwt of capacity, bringing Stelmar's total cargo-carrying capacity to 2,042,000 dwt. Upon delivery of the six Handymax tankers, as well as the five Panamax newbuildings, Stelmar's total fleet will increase to 42 vessels comprised of 25 Handymaxes, 13 Panamaxes and four Aframaxes. 60% of Stelmar's Handymax fleet will be made up of double-hull vessels and the balance will be double-sided. 100% of Stelmar's Panamax fleet will be comprised of double-hull vessels.
Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

DP World Receives 1st Scheduled Vessel at New Terminal

DP World has yesterday welcomed the first scheduled vessel to call at its new Container Terminal 3 in Jebel Ali, Dubai, as it gears up to serve customers at the state-of-the-art facility.

Kalmar 5th Generation Gloria Reachstackers Enter US

Kalmar, part of Cargotec, is launching its highly acclaimed range of reachstackers, called Gloria into the Americas. The eagerly awaited launch follows the successful

Foster Wheeler & MDM Engineering Merged

Foster Wheeler AG announced today that an indirect wholly owned subsidiary of the Company has completed the acquisition of MDM Engineering Group Limited (“MDM”)

Legal

Foster Wheeler & MDM Engineering Merged

Foster Wheeler AG announced today that an indirect wholly owned subsidiary of the Company has completed the acquisition of MDM Engineering Group Limited (“MDM”)

New York, London Juxtaposed by New Maritime Event

On November 13, the newly formed New York Maritime Consortium, a coalition of leaders from New York Maritime Inc. (NYMAR), the Society of Maritime Arbitrators (SMA),

Yara Reports Strong 3Q Results

Yara International ASA delivered strong third-quarter results, with record fertilizer deliveries and continued margin benefit from lower European gas price. "Yara

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Naval Architecture Navigation Pipelines Port Authority Salvage Ship Simulators Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1867 sec (5 req/sec)