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Tuesday, January 16, 2018

Newbuilding Contract News

Scorpio Bulkers Modifies and Sells Shipbuilding Contracts

Scorpio Bulkers Inc. Scorpio Bulkers Inc. has reached agreements with shipyards in South Korea and Romania to modify six newbuilding contracts for Capesize bulk carriers into newbuilding contracts for LR2 product tankers. The company has also reached an agreement to sell four of these LR2 newbuilding contracts to Scorpio Tankers Inc., a related party, additionally granting options to Scorpio Tankers Inc. to purchase the two remaining LR2 newbuilding contracts. The sale price for each of the four LR2 newbuilding contracts is $51 million. The two option contracts, which expire on May 31, 2015, may be exercised by Scorpio Tankers Inc. for a fixed purchase price of $52.5 million for each contract.

Euroseas Reports Q4 Loss

Pic: Euroseas Ltd

Euroseas Ltd., an owner and operator of drybulk and container carrier vessels and provider of seaborne transportation for drybulk and containerized cargoes, reported a total net revenues of $7.3 million for the three month period ended December 31, 2016. Net loss attributable to common shareholders of $18.1 million or $2.17 loss per share basic and diluted. This loss includes, amongst other items, a $0.4 million of dividend on Series B Preferred Shares, a $5.9 million loss on write-down of M/V Eleni which was held for sale…

DryShips Cancels Newbuild Contracts

DryShips Inc. reports cancellation of four newbuilding contracts with Jiangsu Rongsheng Heavy Industries DryShips Inc., an international provider of marine transportation services for drybulk and petroleum cargos, and through its majority owned subsidiary, Ocean Rig UDW Inc., of offshore deepwater drilling services, today announced that it has reached an agreement with Jiangsu Rongsheng Heavy Industries (RSHI), to cancel the newbuilding contracts for four ice-class panamax bulker vessels, in exchange for the refund of all installments paid to RSHI plus interest. All amounts due under this agreement have been received in full by the Dryships, the company said. dryships.com  

Euroseas Reports Loss

Photo: Euroseas Ltd

Euroseas Ltd has announced its results for the three and six month period ended June 30, 2016 as well as certain fleet updates. Total net revenues of $7.3 million. Net loss of $19.2 million; net loss attributable to common shareholders (after a $0.4 million of dividend on Series B Preferred Shares) of $19.6 million or $2.42 loss per share basic and diluted. The results include an impairment charge of $14.0 million on our "Investment in joint venture". Adjusted net loss attributable to common shareholders1 for the period was $0.51 per share basic and diluted.

Acquisition of Four Capesize Newbuilding Contracts

Golden Ocean Group Limited has acquired two newbuilding contracts at Daehan Shipbuilding Co., Ltd., South Korea and two newbuilding contracts at Zhoushan Jinhaiwan Shipyard in China. The vessels of 170,000 dwt and 176.000 dwt respectively will be delivered between December 2008 and October 2009. The total purchase price for the four units is $296m. Given the continuous positive outlook for the global steel production and the age profile of the existing capesize fleet, the management has a positive market view for this sector going forward. The Board of Golden Ocean finds the combination of price and time of delivery attractive, and an additional step in its ambitious growth strategy.

Euroseas Cancels Ultramax Newbuild Order

Euroseas Ltd., an owner and operator of dry bulk and container carrier vessels, has cancelled its order for an Ultramax dry bulk vessel under construction at Dayang yard due to excessive construction delays. The vessel, Hull Number DY 161, was previously scheduled for delivery at the end of August 2016. The ship owner has demanded the return of its progress payments and other expenses as specified in the contract and secured by refund guaranties. The parties have referred the matter to arbitration. In June 2016, the company cancelled another new build contract for a similar Ultramax vessel, Hull Number DY 160, with the same yard also due to excessive construction delays.

Swedish Coast Guard Orders Third Vessel

In December 2005 the Swedish Coast Guard awarded Damen the newbuilding contract for two state-of-the-art 81-metre Coast Guard Vessels. Construction of these vessels is currently taking place at Damen Shipyards Galati in Romania and delivery for the first vessel is scheduled for the summer of 2008, the second vessel will follow towards the end of 2008. The contract included an option for a third vessel; this option has now been exercised. The third vessel is specially designed and equipped to perform chemical recovery duties and is provided with very sophisticated equipment which enables the vessel to combat abroad range marine accidents involving fire, hazardous gasses, explosion danger and chemical disasters. The capabilities of this multi purpose vessel makes it unique in the world.

BIMCO: Greece is the Leader in Newbuild Investment

Source: BIMCO, CRSL

Greek shipowners are not only the most active nation when it comes to sales and purchases, they are also investing the most in newbuilding contracts, BIMCO reported. Since 2010, contracts made by owners in Greece total $51 billion (USD), consistently dwarfing the likes of Norway and China as buyers. Chief Shipping Analyst at BIMCO, Peter Sand, said, "The Greek ship owners’ interest in newbuilding contracts has continued into 2014, where 73 new contracts valued at $4.3 billion have been signed.

News Flash! Greek Shipowners Prefer Bulkers

The buying interest from Greek ship owners is focused on bulkers to an increasing extent, BIMCO said. Data from VesselsValue.com reveal that Greek owners were at the buying end of 43% of all bulker sales completed so far in 2014. As of June 2014, the number of Greek bulker purchases so far is 91, compared to 81 for the full year of 2012. The level of activity seen so far in 2014 would suggest Greek owners are on target to top the 199 bulker purchases completed in 2013. “The interest is much centered on bulkers and has become more and more explicit over the past two years…

GOGL Acquires Four Capesize Newbuilding Contracts

Golden Ocean Group Limited has acquired four newbuilding contracts at Daehan Shipbuilding Co., Ltd., South Korea. The vessels of 170,000 dwt will be delivered between May 2008 and January 2009. The agreed purchase price is USD 72,25 million per unit. Given the positive outlook for global steel production and the age profile of the existing cape size fleet, the management has a bullish market view for this sector going forward. The Board of Golden Ocean finds the combination of price and time of delivery attractive, and a right step forward in its growth strategy. The Company has been granted the option for additional four vessels which can be delivered between April 2009 and January 2010.

AET Orders Three Product Tankers Using Newbuildcon

Tanker owner-operator AET has ordered three 6,600DWT oil/chemical tankers from Russia’s Okskaya Shipyard using BIMCO’s Newbuildcon standard newbuilding contract. The contract for the new tankers was signed on 28 August, with the vessels due for delivery between July and December 2009. The order for the new tankers is aimed at expanding AET’s fleet capacity and extending the geographical coverage of its operations. Long-term employment for the vessels has already been secured. Commenting on the decision to use NEWBUILDCON in this latest order, Zurina Raja Abu Bakar, AET’s

TEN Accepts Delivery of Nine-Vessel Western Petroleum Fleet

Tsakos Energy Navigation Limited (TEN) announced the completion of delivery of three LR Aframax newbuilding contracts and six 2005-built MR handymax tankers all with 1A ice-class designations and capable of carrying petroleum products. The first vessel, the Artemis, was delivered on April 11, 2006 while the remaining eight vessels and contracts were delivered in the course of the following four weeks. Of the six MR tankers delivered four will operate in extended time-charters while two will enter the spot market.

Pioneer Scratches Orders for Five Newbuildings

Pic: Pioneer Marine

Singapore-based bulker player Pioneer Marine has terminated five handysize newbuild contracts at Yangzhou Guoyu Shipyard. The leading shipowner and global drybulk handysize transportation service provider announced the following developments regarding its newbuilding program: "Termination of five newbuilding contracts for Green Dolphin 38,400 dwt Handysize vessels following mutual agreement with Yangzhou Guoyu Shipyard. The Company's CEO, Pankaj Khanna, further elaborated by stating…

Scorpio Tankers' Latest Sale & Purchase Deals

Scorpio tanker: Photo courtesy of the owners

Scorpio Tankers says it recorded a gain of US$51-million from the sale of the 7 VLCC newbuilding contracts announced earlier. In March 2014, the Company received the proceeds from the sale of the seven VLCC newbuilding contracts and recorded a gain of $51 million in the first quarter of 2014. reported that the sale agreement of STI Spirit is expected to be finalized before the end of April 2014. At the end of March 2014, the Company informs that it took delivery of STI Texas City, an MR product tanker newbuilding from SPP Shipbuilding Co., Ltd.

Euroseas Signs an Addendum Shipbuilding Contract with YJZ Yard

Photo: Euroseas Ltd

Euroseas Ltd., an owner and operator of drybulk and container carrier vessels and provider of seaborne transportation for drybulk and containerized cargoes, has announced  certain developments related to its newbuilding program. The Greek liner has signed an addendum to its shipbuilding contract with YJZ Shipyard  for the construction of Kamsarmax vessel Hull Number YZJ 1153 scheduled to be delivered during the first quarter of 2018. According to the addendum, the Company acquired the option until December 31…

Golar LNG Signs Newbuilding Contract with DSME

The Board of Golar LNG Ltd. has confirmed that it has now signed a newbuilding contract with the Korean shipbuilder DSME for one 145,000 m3 LNG newbuilding for delivery in end of 2005 / alternatively beginning of 2006. Included in the contract is an option for up to two more newbuildings with delivery in 2006/2007 to be declared at a later stage. Chairman John Fredriksen says in a comment: "The strong market recovery in the drybulk, container and tanker sectors has put pressure on yard capacity. In this situation it has been important for Golar to secure the future growth of our company. The combination of the attractive contract price, fixed earlier this year, and the additional option package makes this deal into a very favourable contract for Golar.

Exmar Signs for Two Large Gas Carriers

EXMAR has signed a newbuilding contract for 2 Very Large Gas Carriers at Daewoo Shipbuilding and Marine Engineering Co. of South Korea. The newbuildings will have a capacity of 84,000 m³ and the first vessel will be delivered in the 1st half of 2008. EXMAR currently controls a combined fleet of 60 gas carriers servicing the entire gas product range worldwide.

Concordia Orders 2 Tankers

Concordia Maritime's and Brodosplit shipyard's boards have issued final approval of the newbuilding contract for vessels number seven and eight in Concordia Maritimes P-MAX-series. Estimated time for delivery is the 4th quarter 2009.

Ganger Rolf Orders Newbuildings

First Olsen Ltd., which is owned 50/50 by Bonheur ASA and Ganger Rolf ASA, is advising of a Letter of Intent for newbuilding contracts for two suezmax tankers to be built at Bohai Shipbuilding Heavy industries C. Ltd. in China. If concluded, delivery will be due in December 2009 and April 2010, respectively and the price is agreed at $73.7m per vessel.

GOLAR LNG LIMITED - Further New Building LNG Carriers

Golar LNG Limited ("Golar" or the "Company") is pleased to announce in furtherance of its recent press release regarding new buildings, that it has acquired further firm contracts to build two additional 160,000 m3 LNG carriers with the Korean shipbuilder Samsung Heavy Industries Co Ltd ("Samsung"). The newbuilding contracts were originally entered into by Companies affiliated with Golar's largest shareholder World Shipholding. Golar has acquired the newbuilding contracts from the affiliated party based on the original contracting terms.

Seaspan Signs Newbuilding Contracts

Seaspan Corporation (NYSE:SSW) has announced that it has signed contracts for the construction of five 14,000 TEU class newbuilding containerships at Hyundai Heavy Industries Co., Ltd. The vessels are scheduled for delivery in 2015 and will be constructed using Seaspan's fuel efficient SAVER design. Concurrently with executing the newbuilding contracts, Seaspan signed 10-year, fixed-rate time charters for the vessels with Yang Ming Marine Transport Corporation. After the initial 10-year charter periods, Yang Ming may extend the charter for each vessel up to an additional two years. These five 14,000 TEU class containerships remain subject to allocation in relation to the right of first refusal agreement with Greater China Intermodal Investments LLC…

Paragon Moves on Containerships

Paragon Shipping Inc. has sold one of its newbuilding Kamsarmax contracts and has also entered into agreements to acquire two 3,400 TEU newly built containerships from their builder Howardtwerke-Deutsche Werft, GmbH, Germany at a price of $49m. The container vessels are scheduled to be delivered to Paragon between July and August, 2010. “We have taken advantage of favorable conditions in the sale and purchase markets to sell one of our Kamsarmax newbuilding contracts and also to acquire two 3,400 TEU newbuild container vessels with prompt delivery within July and August 2010,” said Michael Bodouroglou, Chairman and Chief Executive Officer of Paragon Shipping.

USAC, HHI Ink $2 Billion in Newbuildings

UASC Cements its largest ever newbuilding order by exercising options for six 14,000 TEU boxships. United Arab Shipping Company (UASC) announced Sunday that options for six additional 14,000 TEU vessels have been exercised bringing the total order to 16 ships. The order has been placed with Hyundai Heavy Industries (HHI) in Korea and is the largest in UASC’s history, worth over US$ 2 billion including all options. The order features vessels that will be amongst the largest, most technologically advanced, and most environmentally friendly container vessels ever built.

Maritime Reporter Magazine Cover Dec 2017 - The Great Ships of 2017

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