Eitzen Orders Tankers from Jinse Shipbuilding

Eitzen Chemical ASA has signed an agreement with Jinse Shipbuilding Co., Ltd. in Korea for two coated 13,000 dwt chemical carriers for $23.6m per vessel. The vessels will be delivered in 2008. Furthermore, the Company has an option for two additional units. Following this order, the Company's newbuilding program consists of 35 vessels (plus two options) to be delivered before 2010. Its current owned and financially controlled fleet consists of 73 vessels, with another 14 vessels under management.

The company also announced that it has reached an agreement in principle with Nordic Tankers A/S in Denmark to sell its 50% share interests in Sichem Copenhagen (13,000 dwt, coated, built 2005) and Sichem Oslo (13,000 dwt, coated, built 2005) based on a value of each vessel of $27m. Both vessels will continue in the City Class Pool, commercially operated by the Company. The company will book a profit of approximately $10.3m from these sales. At the same time the Company has agreed in principle to acquire the remaining 50 percent interest in Sichem Pearl (10,300 dwt, stainless steel, built 1994) from Nordic Tankers A/S based on a value of $16.0m. The company announced it has declared an option to buy Sichem Palace (8,800 dwt, stainless steel, built 2004) for $12.9m The market value per March 31 for the vessel was estimated to be $27.8m. The vessel was on a financial lease from a Japanese company.

Jinse Shipbuilding Co. is a recent addition to the Korean shipbuilding scene, having been formed by Jinse Heavy after purchase of a Senshin Shipbuilding, a shiprepair yard. Source: Shipping Times