Eruonav: Sale and Leaseback of Four VLCCs
Euronav NV (NYSE: EURN) entered into a five-year sale and leaseback agreement for four VLCC vessels with investment vehicles advised by Wafra Capital Partners Inc., a private equity partnership. The four VLCCs are the Nautilus (2006), Navarin (2007), Neptun (2007) and Nucleus (2007). The transaction assumes a net en-bloc purchase price of $186 million. The transaction produced a capital gain of about $37 million and the transaction should be booked as an operating lease under IFRS. As per Euronav dividend policy, this capital gain will not be eligible for dividend distribution. After repayment of the existing debt, the transaction generated in excess of $100 million free cash. The vessels were delivered to their new owners, the investment vehicles advised by Wafra Capital Partners Inc.
Grandweld to Build Four Crane/Workboats for KOC
Grandweld Shipyards has signed a contract with Kuwait Oil Company to design and build a series of four crane/workboat class vessels. The contract is valued at a total of USD $50 million over the duration of the build. Grandweld’s crane/workboats are designed and built in-house to meet the specific needs of KOC's requirements; these state of the art vessels are designed to undertake tasks such as lifting and moving heavy equipment, oil pollution control, SBM hose handling, FO/FW supply, and other related duties. Each vessel comes with a crane capable of lifting 20 tons at 10 meters radius.
Image to Build Vessels for Kuwait
Austal has announced that it has secured an order for three Coast Guard vessels from the Government of Kuwait, Ministry of Interior. The trio of 22 metre aluminium monohulls will be built by Austal subsidiary, Image Marine and are due for delivery by early 2004. Austal Managing Director, Mr Bob McKinnon, said the contract was won against stiff international competition as part of a global tender process, and demonstrated the company’s ability to penetrate new markets. “Securing this contract with the Kuwait Coast Guard, together with our short-listing for the Royal Australian Navy patrol boat project, shows that there is considerable potential for Austal in this market,” he said.
