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 Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter May 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

NASSCO Lays Keel for Jones Act Tanker Liberty

U.S. shipbuilder General Dynamics NASSCO hosted a keel laying ceremony on Thursday, May 26 for the Liberty, one of three new ECO Class Jones Act tankers under a

DSC Dredge Receives President’s E-Star Award

DSC Dredge, LLC, based in Reserve, La., has received the 2016 President’s “E-Star” Award for exports.   In a ceremony held on May 16, 2016, at the U.S. Department

TT Club Reports Robust Financial Results for 2015

TT Club has announced its financial results for the year ended December 31, 2015, and AM Best affirms its A- (Excellent) rating for the 10th consecutive year.   Knud Pontoppidan,

Legal

Portugal PM Warns Lisbon Dock Workers to End Strike

Portugal's prime minister warned Lisbon dock workers on Friday that his patience was running out after a strike that has lasted a month, paralysing the city's ports.

Gender Identity Spat Sinks Spending Bill

The rancorous political debate over sexual identity unexpectedly prompted the Republican-controlled House of Representatives to rejected an energy and water spending

Hercules Offshore Filing for Bankruptcy Again

Hercules Offshore Inc said it planned to file for prepackaged Chapter 11 bankruptcy, just six months after the rig contractor emerged from bankruptcy protection.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Navigation Pipelines Port Authority Salvage Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | 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: 0.1038 sec (10 req/sec)