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 Reporter March 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Carnival Sails to Profit

The world's largest cruise company Miami-based Carnival Corp reported a net profit of $49 million, or 6 cents per share in the first quarter ended Feb. 28.   That

Ukraine Arrests Turkish Ship for Visiting Crimean Port

Turkey owned merchant ship flying the flag of Tuvalu was arrested by Ukrainian authorities over a visit it made to a port in Crimea, reports Reuters. The ship's captain detained.

USCG Flush Ice down River Systems to Facilitate Shipping

The Coast Guard cutter fleet is flushing ice through the Great Lakes river systems to prevent ice jams and facilitate commercial shipping as the shipping season

Maritime Security

Is China Building a Naval Base in Africa?

Recently, The Namibian reported the existence of a "confidential letter from Namibia's ambassador to China, Ringo Abed, to Namibia's foreign minister stating that

Ukraine Arrests Turkish Ship for Visiting Crimean Port

Turkey owned merchant ship flying the flag of Tuvalu was arrested by Ukrainian authorities over a visit it made to a port in Crimea, reports Reuters. The ship's captain detained.

Mediterranean Rescue Operations Strain Shipping

The Wall Street Journal ran a story yesterday describing how the increasing number of seaborne migrants making the journey from Africa to Europe has not only

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Naval Architecture Offshore Oil Pod Propulsion Salvage Ship Repair Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1683 sec (6 req/sec)