Stelmar Shipping Ltd. announced that it has signed a time charter contract for the Ambermar.
The time charter for the Ambermar, a 2002 double-hull Handymax tanker, was renewed for another two years by Fuel and Marine Marketing LLC (FAMM), a ChevronTexaco company, at a rate of $14,000 per day. To date, Stelmar has secured 82.4% of the net operating days of its fleet on profitable time charters for 2003 and 39.2% for 2004, representing $138 million and $86 million in revenues, respectively.
Peter Goodfellow, Chief Executive Officer and President, stated, "The execution of this contract marks another achievement under Stelmar's time charter strategy for allowing the Company to benefit in a strong rate environment. With this contract, Stelmar has further enhanced its earnings and shareholder return potential for 2003 and has taken additional steps to ensure 2004 will be another year of profitability and strong returns."
Stelmar also announced the sale of the Promar, a 1988 double sides Handymax tanker. Commenting on the sale of the Promar, Mr. Goodfellow stated: "The sale of the Promar was made as part of Stelmar's continued focus on maximizing its profit potential and delivering strong returns on capital for its shareholders. Both are core objectives of our fleet growth and renewal strategy that should enable Stelmar to build upon its 33 consecutive quarters of profitability and its greater than 10% five-year average return on capital employed, one of the highest within the tanker industry. With the sale, the Company also strengthens its position as having one of the youngest and most modern fleets in the world and enhances its ability to meet customers' needs in a changing regulatory environment