d’Amico Updates on its Fleet
d’Amico International Shipping said that M/T High Challenge, an ‘Eco’ new-building MR product tanker built by Hyundai Mipo Dockyard – South Korea at their Hyundai Vinashin Shipyard – Vietnam, was delivered to the Group last year.
d’Amico Tankers also agreed with Hyundai Mipo Dockyard Co. Ltd. – South Korea – to postpone the delivery of its first newbuilding LR1 from April 2017 to October 2017. This agreement follows a specific request of an oil major and a key customer of the Group, which will take the vessel on a 18 month TC contract upon her delivery from Hyundai Vinashin Shipyard Co. Ltd. – Vietnam.
At the same time, the estimated delivery dates of the remaining 5 LR1s under construction at Hyundai Vinashin Shipyard Co. Ltd. – Vietnam, have also been slightly delayed by approximately two months compared to the original schedule.
In November 2017, M/T Cielo Bianco, an ‘Eco’ new-building LR1 product tanker built by Hyundai Mipo Dockyard – South Korea at their Hyundai Vinashin Shipyard – Vietnam, was delivered to the Group.
In December 2017, d’Amico Tankers d.a.c. signed a memorandum of agreement and bareboat charter contract for the sale and leaseback of the MT High Freedom, a 49,990 dwt medium-range product tanker vessel, built in 2014 by Hyundai Mipo (South Korea) for a consideration of US$ 28.0 million.
This transaction will allow d’Amico Tankers to generate around US$ 13.4 million in cash in Q1 2018, net of commissions and reimbursement of the vessel’s existing loan, contributing to the liquidity required to complete DIS’ fleet renewal program.
In addition, through this transaction d’Amico Tankers will maintain full control of the Vessel, since a 10-year bareboat charter agreement was also concluded with the buyer, with a purchase obligation at the end of the 10th year of the charter period. Furthermore, d’Amico Tankers has the option to repurchase the Vessel, starting from the second anniversary of her sale at a competitive cost of funds.
