Fairstar Awarded Multiple Voyage Contracts by KBR
Fairstar Heavy Transport (FAIR) has been awarded a multiple voyage contract by KBR (KBR) of Houston. Fairstar’s semi-submersible heavy transport vessel ‘Fjord’ will deliver the EGTL modules for Chevron (CVX) from Abu Dhabi to the Escravos River in Nigeria. The Fjord will make a total of three consecutive round trip voyages over the course of the contract. The first cargo is currently scheduled to be picked up in February 2009. Total contract value for Fairstar is $23.2 million, all of which shall be received in 2009.
Cristijn Sarvaas, CFO, highlighted the financial impact of the contract: “this multiple voyage contract significantly strengthens our financial position and the predictability of our revenues. Gross revenue of USD 23.2 million combined with the revenues of the Bharati, Daewoo and the Heerema Marine Contractors contracts now total $58.6 million for 2009-2010. Contracted utilisation for 2009 is now 368 days or 50% of our fleet capacity. The Fjord is now booked for a total of 291 days or 80% utilisation in 2009. Based on current contracts, the expected time charter equivalent revenue for the fleet in 2009 is in line with our target of $80,000 per day.”
Philip Adkins, CEO, summarised: “operating in this market with a two vessel fleet is a challenge. We have answered that challenge by focussing our efforts on key niches where we believe Fairstar has a sustainable competitive advantage. We have now successfully signed multiple voyage contracts with three of the most influential companies in the offshore project development world. Daewoo, Heerema Marine Contractors and KBR work very closely with each other on a number of long term energy projects. Their expectations for performance are high and we intend to continue to build on these relationships by delivering their cargoes safely and reliably over the coming years.”
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