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.

People & Company News

MN100: Klüber Lubrication NA LP

The Company: Klüber Lubrication is one of the world’s leading manufacturers of specialty lubricants, offering high-end tribological solutions to virtually all industries and markets worldwide.

Grand Bahama Shipyard Adds Four Executives

Grand Bahama Shipyard Limited (GBSL), a Caribbean shipyard providing retrofit, refurbishment and revitalization to cruise and commercial vessels, has added four

MN100: Voith Turbo

The Company: Voith Turbo specializes in the design, manufacture and servicing of high performance driveline equipment. From drive components to electronic drive systems,

Maritime Security

USCG Evaluates Comms Equipment in Alaska

Coast Guard Research and Development Center evaluates state-of-the-art communications equipment and Next Generation Incident Command System in Alaska   At nearly 663,

TSA Boosts Maritime Security in a Big Way

Though most visible to the general public for its work at America’s airports, the U.S. Transportation Security Administration (TSA) also helps to secure the country’s

Connected Ships, Smart Data, Cybersecurity to Feature in SHIPPINGInsight

Ship connectivity, smart data and cybersecurity will be central themes on the agenda at the fifth SHIPPINGInsight Fleet Optimization Conference & Exhibition. The

 
 
Navigation Offshore Oil Pipelines Pod Propulsion Port Authority Ship Electronics Ship Repair Ship Simulators 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: 0.1304 sec (8 req/sec)