General Maritime Corporation Announces Sale of Vessels

Wednesday, October 19, 2005
General Maritime Corporation announced that it has agreed to sell ten single-hull and double-sided Suezmax vessels en bloc to Tanker Pacific for $294.5 million. The Company expects to realize a net gain of $109 million from the sale of these ten vessels. The company intends to utilize the proceeds to pay down debt and therefore the proceeds will be excluded in the calculation of the dividend for the applicable quarters. The delivery of the vessels is expected to take place between November 2005 and January 2006. Peter C. Georgiopoulos, Chairman, Chief Executive Officer and President, stated, "Consistent with General Maritime's strategy of modernizing its fleet, we have entered into this opportunistic transaction that will enable the Company to further unlock shareholder value. In addition to selling the vessels at an extremely favorable price and earning an approximately 80% annualized return on our initial investment, the transaction improves the fleet's age profile, increases the percentage of double-hull vessels and further strengthens our balance sheet. With significant financial strength and flexibility, General Maritime is well positioned to build upon its past success and continue to seek opportunities to create enduring value for shareholders." The vessel sales include four single-hull and six double-sided vessels with an average age of approximately 15.5 years. Following the completion of the sale and including the four Suezmax newbuildings to be delivered between 2006 and 2008, the average age of General Maritime's fleet will be reduced to ten years and its percentage of double-hull vessels will be increased to 81%. As previously announced, General Maritime will host a conference call on October 27, 2005 at 8:30 a.m. eastern daylight time to discuss its results for the third quarter of 2005. The Company expects to announce its third quarter dividend with the announcement of its third quarter results.
Maritime Reporter June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Kleven Shipbuilding Wins IES Pioneer Contract

Norway’s Kleven announced it has signed a shipbuilding contract with Malaysian based joint venture company IES Pioneer Ltd. The vessel is of Norwegian design

Sunken WW II Ship Oil Leak Plugged

Atlantic Coast Marine Group, Inc. successfully responds to World War II era motor tanker leaking massive cargo of oil into the Atlantic Ocean's waters. Beaufort,

New ICTF Boosts Crowley’s Efficiency

The opening of Florida East Coast Railway’s (FEC) new, state-of-the-art intermodal container transfer facility (ICTF) adjacent to Crowley Maritime Corporation’s Port Everglades, Fla.

Offshore

DNV GL Publishes Regulatory Roadmap for Floaters in the US

DNV GL announced it has mapped out what is necessary to be in compliance with U.S. Coast Guard (USCG) requirements to operate FOIs, FSOs and FPSOs in U.S. waters.

Second Typhoon Threatens Taiwan

The Taiwan military was collecting and distributing sandbags to guard against possible flooding on Tuesday as a typhoon bore down on the island after brushing the Philippines.

Shipbuilders Vard Report Financial Fair Sailing

Designers and shipbuilders of offshore and specialised vessels, Vard Holdings, has announced its financial results for the second quarter of financial year 2014 (“2Q2014”),

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Navigation Pipelines Pod Propulsion Ship Simulators Shipbuilding / Vessel Construction Sonar 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: 0.1739 sec (6 req/sec)