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

People & Company News

Indonesia Expects Total to Decide on Mahakam within days

French oil firm TotalĀ  will decide how much interest it will retain from 2018 in Indonesia's offshore Mahakam oil and gas block over the next two days, the

Research Vessel Heincke: Serving Science for 25 years

7 July 2015. A quarter of a century old, with over 900,000 kilometres (488,842 nautical miles) logged and still on the cutting edge of science and technology:

Stena RoRo Charters Three Vessels

Stena RoRo has reached an agreement with the Finnish shipping company Godby Shipping to long-term charter their three RoRo vessels Misida, Misana and Miranda.

Offshore

Indonesia Expects Total to Decide on Mahakam within days

French oil firm TotalĀ  will decide how much interest it will retain from 2018 in Indonesia's offshore Mahakam oil and gas block over the next two days, the

Water Conservation Measures at Panama Canal

The water levels at Gatun and Madden Lakes are currently well below the expected levels for this time of year. Based on a comprehensive analysis of historic data,

First Subsea Wet Gas Compressor Installed

After several years of technology development, construction and testing the first subsea wet gas compressor in the world is now installed at the Gullfaks C platform in the North Sea.

 
 
Maritime Careers / Shipboard Positions Maritime Security Naval Architecture Pipelines Pod Propulsion Port Authority Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar
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: 0.0038 sec (264 req/sec)