Omega Nav Time Charter, Omega King

Monday, June 01, 2009

Omega Navigation Enterprises, Inc. (NASDAQ:ONAV, SGX:ONAV50), a provider of global marine transportation services focusing on product tankers, announced that it has entered in to a new time charter agreement on the Omega King for a period of one year with an option period of one year with Torm A/S (Torm).

Effective May 23, 2009, the Omega King entered into a new one year time Charter with its current charterer, Torm, with Torm having the option to extend the charter for an additional year at a higher rate. The vessel will be chartered for the first year at an average base rate of $16,500 per day with a profit sharing arrangement between Omega and Torm. That base rate the second year increases to $20,000 per day with a profit sharing arrangement with earnings above that base level shared equally between Omega and Torm.

This charter gives the company 100% time charter coverage currently. For the second half of 2009 until mid 2010 the company currently has 75% time charter coverage on its current fleet.

George Kassiotis, President and CEO of Omega commented, "We are extremely pleased to continue our excellent relationship with Torm, who has been chartering the Omega King since its delivery from the shipyard. Torm is a valuable partner in the product tanker market and an extremely good counterparty, having been founded in 1889 and is listed on both the Copenhagen stock exchange and the NASDAQ. This recent fixture is expected to generate EBITDA, before any additional income from the profit sharing arrangement, of approximately $3.9 million in the first year and $5.1 million in the second year if the option is declared. Even in this very challenging economic climate and difficult shipping markets, Omega is coming closer to having its entire fleet chartered out to be better able to weather these current conditions."

Maritime Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

Shipping Turns From Banks to Equity Markets for Cash

Shipping companies are turning to equity markets to fill a growing funding gap, betting that investors hungry for decent returns will provide capital to a sector

Keel-Laid for Navy's 10th LCS at Austal Yard

The Navy and Austal USA held a keel-laying ceremony for the future 'USS Gabrielle Giffords', the Navy's 10th littoral combat ship (LCS), in Mobile, Ala., informs

Havyard to Build Hybrid Battery Arctic PSV

Norway's Havyard says it has signed a contract for the construction of a Havyard 833 WE ICE platform supply vessel with Fafnir Offshore HF. The vessel is to be

 
 
Maritime Security Naval Architecture Pipelines Pod Propulsion Salvage Ship Electronics Ship Repair 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: 0.0961 sec (10 req/sec)