DIS Sells a Tanker

Maritime Activity Reports, Inc.

February 21, 2019

Image: d’Amico International Shipping (DIS)

Image: d’Amico International Shipping (DIS)

The international marine transportation company d’Amico International Shipping (DIS) announced that its joint venture (JV) company DM Shipping (DMS)  signed a memorandum of agreement for the sale of its product tanker vessel MT High Strength  for a consideration of USD 16.4 million

The 46,800 dwt MR tanker is , built in 2009 by Nakai Zosen Corporation, Japan. DMS is a JV with the Mitsubishi Group, in which d’Amico Tankers (Ireland) holds a 51% participation.

MT High Strength will continue its current time-charter out contract with d’Amico Tankers until October 2019, said the product tanker market operator.

This transaction allows DM Shipping to generate around US$ 12.3 million in cash, net of commissions and reimbursement of the Vessel’s existing loan.

Paolo d’Amico, Chairman and Chief Executive Officer of d’Amico International Shipping, stated: “I am satisfied to announce the conclusion of this deal, which will generate a very positive net cash effect, of approximately US$ 12.3 million, for DM Shipping, our 51/49 joint venture company with the Mistubishi Group. We saw strong interest from potential buyers for the Vessel and were able to sign the memorandum of agreement within a relatively short period of time."

"The increasing appetite from buyers and period charterers over the last few months, is evidence of the strong medium-term fundamentals of the sector, and of the imminent anticipated market recovery. In addition, this transaction will allow us to sell a 2009-built vessel and is therefore in line with our long-term objective of maintaining a very young and modern fleet,” he added.

As of today, DIS’ fleet comprises 49.5 double-hulled product tankers (MR, Handysize and LR1) with an average age of about 7 years (of which 24 owned, 17.5 chartered-in and 8 bareboat chartered.

DIS has also 4 vessels in commercial management). Currently, d’Amico Tankers has also shipbuilding contracts with Hyundai Mipo Dockyard Co. Ltd., for the construction of 1 LR1 (Long Range) product tanker expected to be delivered in 2019.

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