General Maritime Corporation (NYSE: GMR) announced that it has reached definitive agreements to enter into time charter contracts for six of its vessels with Trafigura, one of the world's leading international commodity traders that specializes in the oil, minerals and metals markets. Founded in 1993, Trafigura has 67 offices located in 44 countries throughout Europe, Africa, Asia, Australia, and North, Central and South America.
The six vessels under contract include the Genmar Hercules and the Genmar Atlas, both 2007-built VLCCs, the Genmar Argus and the Genmar Spyridon, both 2000-built Suezmax tankers, as well as the Genmar Defiance and the Genmar Daphne, both 2002-built Aframax tankers. Each of the six time charters, which are expected to commence on or around October 15, 2010, are for one year and come with a one-year optional period. These agreements represent approximately $60m in contracted revenue for the Company during the first year and up to approximately $66m in additional contracted revenue if each one-year option is exercised by the charterer.
John Tavlarios, President of General Maritime Corporation, commented, "We are pleased to significantly expand our time charter coverage by entering into these time charter contracts, with Trafigura, the third largest independent oil trader in the world with more than two million barrels of crude and oil products traded daily, and intend to build upon our initial relationship. These agreements are consistent with General Maritime's flexible deployment strategy that provides shareholders with sizeable fixed revenue streams while maintaining the ability to benefit from future rate increases. With this transaction we will have approximately 40% of our 2011 operating days booked on time charters totaling approximately $130 million in contracted revenue for 2011, assuming all the options are exercised. With a large portion of our modern double-hull fleet secured on time charters with high-quality counterparties, General Maritime remains well positioned to achieve stable financial results."