TEN Buys-Back Aframax Tanker Olympia
Wednesday, January 17, 2007
Navigation Ltd. (TEN) announced that it has taken
delivery, pursuant of the exercise of its option in October 2006, of the
1999-built double-hull Aframax tanker Olympia from the German KG house to
which it had sold the vessel in 1999. The purchase option was exercised at
$31.1 million while its fair market value is estimated to be approximately
$60 million. The vessel is currently operating in the spot market and will
remain so for the foreseeable future.
Separately, the Company also announced the delivery of the 1989 double-
hull Panamax tanker Bregen to its new owners, resulting in a $5 million
capital gain which will be recorded in the first quarter of 2007.
The Company also announced that two sister Panamaxes in the fleet, the
1990-built double-hull Hesnes and Victory III, have terminated their
pooling obligations and have commenced their new employment with a major
South American state oil company. The long-term charters for periods up to
25 months, could generate gross revenues in excess of $35 million over the
corresponding period.