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
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.