General Maritime Announces Exercising of Three Time Charter Options On Aframax OBO Vessels

Monday, October 27, 2003
General Maritime Corporation today announced that a leading international trading company has exercised its option to time charter three additional Aframax OBO vessels for two years. The contracts for the these three vessels will provide net voyage revenue to General Maritime in the first year of approximately $21 million and could provide an additional $21 million in the second year through the exercising of the charterer's option. If the charterer does not exercise the option, General Maritime has the option to extend the time charter for an additional year, which would generate net voyage revenue of approximately $17 million. The time charters for these three vessels will commence upon delivery of the vessels, expected to occur between November 2003 and February 2004. Peter C. Georgiopoulos, Chairman, Chief Executive Officer and President, commented, "We are extremely pleased to have been able to opportunistically lock-in three additional vessels at highly profitable rates and provide significant secured revenue to our shareholders for the next two years. The recent time charter contracts we have signed demonstrates the advantages of our flexible fleet deployment strategy. By exercising discipline and only engaging vessels on time charters that meet our strict return requirements, we are able to continue to benefit from strong rate environments and achieve substantial downside protection." The exercising of these three options is part of a previously announced decision to time charter up to nine Aframax OBO vessels. Including these three most recent contracts, the charterer has now signed seven of the nine time charters, which will guarantee net voyage revenue to General Maritime of approximately $49 million in year one. In year two, General Maritime is guaranteed a minimum of approximately $40 million and could earn as much as $49 million. The charterer also has an option to time charter two additional Aframax OBO vessels, for a total of nine vessels. The exercising of these two remaining options would provide the Company additional net voyage revenue of $14 million, in year one, for total fixed net voyage revenue of approximately $63 million in year one for all nine vessels. These two time charters may be extended for an additional year on similar terms to the seven vessels. Including the most recent three charters, General Maritime has 14 of its 46 vessels, or 30% of its fleet, on time charter contracts.

Maritime Today


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

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

People & Company News

IBIA Celebrates 23th Annual Dinner

Association appoints new board members and sets priorities for the future   The International Bunker Industry Association (IBIA) has appointed three new members

OSV Delivered to MC2 in Dubai

Marine Core & Charter LLC (MC2) headquartered in Dubai has taken delivery of the new build PETRA-1, the first of two, 45-meter Fast Offshore Support Vessels in

Baltic Index Pauses at Record Low

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, ended flat on Thursday after declining for 12 straight sessions

Maritime Security

NATO Sea Mission Launched against Migrant Traffickers

NATO ships are on their way to the Aegean Sea to help Turkey and Greece crack down on criminal networks smuggling refugees into Europe, the alliance's top commander said on Thursday.

NATO Launches Sea Mission Against People-Smugglers

NATO, EU mission to help target traffickers in Aegean Sea. NATO ships are on their way to the Aegean Sea to help Turkey and Greece crack down on criminal networks smuggling refugees into Europe,

Greeks at Frontline of Migrant Crisis Angry at EU Critics

ABOARD THE AGIOS EFSTRATIOS, Aegean Sea, Feb 11: Greek Captain Argyris Frangoulis lifts his binoculars and with eyes fixed on the Aegean Sea horizon, steers his

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Pod Propulsion Ship Repair Ship Simulators 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: 0.1027 sec (10 req/sec)