Overseas Shipholding to Sell Tankers

Wednesday, June 28, 2006
Overseas Shipholding Group, Inc. has agreed to sell two of its oldest Aframaxes (the 1993-built Overseas Keymar and the 1994-built Pacific Sapphire) and one of its oldest VLCCs (the 1996-built Majestic Unity) for net proceeds of approximately $168 million. The proceeds will be used to fund the recently announced newbuild program of four Aframax tankers that are being built at the New Times Shipbuilding Co., Ltd. shipyard in Jinjiang, China. The new 114,000 dwt 44-meter beam Aframaxes are larger, faster and have a lower daily operating cost than the older vessels sold. The closings of the sales of these vessels are subject to the satisfaction of standard vessel sale closing conditions. Delivery of the tankers to their new owners is expected to occur between the middle of July 2006 and the middle of August 2006. OSG expects to realize a net gain of approximately $40 million from these sales.

Separately, OSG chartered-in two 2003-built Aframaxes, the Phoenix Alpha and the Phoenix Beta, each for three-year periods. OSG has a 30 percent interest in these modern vessels, both of which trade in the Aframax International pool, which were delivered late in the second quarter. The tanker sales and fleet additions are part of OSG's ongoing active asset management and fleet modernization programs. The Company's newbuild program includes 26 vessels across its crude, products, U.S. Flag and gas segments, which are scheduled for delivery between late 2006 and 2010. In addition, the Company has capitalized on the strong second-hand tanker market and has generated net proceeds of approximately $942 million on vessels that have either been sold or sold and leased-back since January 2005, including the sale of the tankers announced today. Giving effect to these tanker sales, the average ages of OSG's owned VLCC and Aframax fleets would have been 5.6 years and 7.4 years, respectively, well below the average ages of the VLCC and Aframax world fleets, which were 8.4 years and 8.9 years, respectively, as of April 1, 2006.

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter January 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

Crowley Christens 2nd LNG-ready Product Tanker

Crowley christens second of four newly built, LNG-ready product tankers for use in U.S. coastwise trade   Crowley Maritime Corp. has christened the second of

Canada Says Lifting Some Sanctions Against Iran

The Canadian government said on Friday it was lifting some sanctions against Iran, including the broad ban on financial services, imports and exports, making Canadian

Glencore to Lift Iranian Fuel Oil at Bandar Mahshahr

Anglo-Swiss commodity trader Glencore has chartered a ship to load Iranian fuel oil at the Iranian port of Bandar Mahshahr in a move that signals the return of

Navy

Antietam, McCampbell Build Relationships at IFR 2016

Ticonderoga-class guided-missile cruiser USS Antietam (CG 54) and Arleigh Burke-class guided-missile destroyer USS McCampbell (DDG 85) arrived Feb. 4 in India

Indian Navy Shows Off Strength

India’s naval might was on full display off the coast of Visakhapatnam today (Saturday) as President Pranab Mukherjee reviewed the naval fleet.   Mukherjee,

Russia Confirms Tanker Seized by Niger Delta Militants

Russia’s embassy in Nigeria confirmed on Thursday that the Greek-owned oil tanker Leon Dias has been hijacked in the Gulf of Guinea, reports TASS.   There are

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Pipelines Port Authority Ship Electronics Ship Simulators
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: 0.0766 sec (13 req/sec)