Overseas Shipholding to Sell Tankers

Wednesday, June 28, 2006
Overseas Shipholding Group, Inc. has agreed to sell two of its oldest Aframaxes (the 1993-built Overseas Keymar and the 1994-built Pacific Sapphire) and one of its oldest VLCCs (the 1996-built Majestic Unity) for net proceeds of approximately $168 million. The proceeds will be used to fund the recently announced newbuild program of four Aframax tankers that are being built at the New Times Shipbuilding Co., Ltd. shipyard in Jinjiang, China. The new 114,000 dwt 44-meter beam Aframaxes are larger, faster and have a lower daily operating cost than the older vessels sold. The closings of the sales of these vessels are subject to the satisfaction of standard vessel sale closing conditions. Delivery of the tankers to their new owners is expected to occur between the middle of July 2006 and the middle of August 2006. OSG expects to realize a net gain of approximately $40 million from these sales.

Separately, OSG chartered-in two 2003-built Aframaxes, the Phoenix Alpha and the Phoenix Beta, each for three-year periods. OSG has a 30 percent interest in these modern vessels, both of which trade in the Aframax International pool, which were delivered late in the second quarter. The tanker sales and fleet additions are part of OSG's ongoing active asset management and fleet modernization programs. The Company's newbuild program includes 26 vessels across its crude, products, U.S. Flag and gas segments, which are scheduled for delivery between late 2006 and 2010. In addition, the Company has capitalized on the strong second-hand tanker market and has generated net proceeds of approximately $942 million on vessels that have either been sold or sold and leased-back since January 2005, including the sale of the tankers announced today. Giving effect to these tanker sales, the average ages of OSG's owned VLCC and Aframax fleets would have been 5.6 years and 7.4 years, respectively, well below the average ages of the VLCC and Aframax world fleets, which were 8.4 years and 8.9 years, respectively, as of April 1, 2006.

Maritime Today


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

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

Tanker Trends

Top 10 Shipowning Nations by Value

VesselsValue has provided a list ranking the top shipowning nations by value, including the percentage change difference against 2015 figures. Although the

2016 a Busy Year for VLCC Deliveries - BIMCO

When it comes to delivering brand new VLCCs from shipyards in South Korea and China to owners and investor across the globe, 2016 is off to a flying start. Six

U.S. Okays ConocoPhillips Alaska LNG Exports

The U.S. Department of Energy approved ConocoPhillips' application to export about 40 billion cubic feet of natural gas from its Kenai liquefied natural gas export

Navy

US, India Consider Joint Patrols in South China Sea

The United States and India have held talks about conducting joint naval patrols that a U.S. defense official said could include the disputed South China Sea, a move that would likely anger Beijing,

This Day In Naval History - February 10

1862 - A flotilla under Cmdr. Stephen C. Rowan aboard USS Delaware engages the gunboats and batteries at Elizabeth City, N.C, capturing CSS Ellis and sinking CSS Seabird.

BAE Systems Awarded £201m to Advance Successor Sub Design

The U.K. Ministry of Defence (MoD) has awarded BAE Systems £201 million to further the design of a successor to the Royal Navy's Vanguard class submarines.   The

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Navigation Salvage Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar 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: 0.0707 sec (14 req/sec)