General Maritime Announces Exercising of Three Time Charter Options On Aframax OBO Vessels
October 27 2003 - 3:01PM
PR Newswire (US)
General Maritime Announces Exercising of Three Time Charter Options
On Aframax OBO Vessels NEW YORK, Oct. 27 /PRNewswire-FirstCall/ --
General Maritime Corporation today announced that a leading
international trading company has exercised its option to time
charter three additional Aframax OBO vessels for two years. The
contracts for the these three vessels will provide net voyage
revenue to General Maritime in the first year of approximately $21
million and could provide an additional $21 million in the second
year through the exercising of the charterer's option. If the
charterer does not exercise the option, General Maritime has the
option to extend the time charter for an additional year, which
would generate net voyage revenue of approximately $17 million. The
time charters for these three vessels will commence upon delivery
of the vessels, expected to occur between November 2003 and
February 2004. Peter C. Georgiopoulos, Chairman, Chief Executive
Officer and President, commented, "We are extremely pleased to have
been able to opportunistically lock-in three additional vessels at
highly profitable rates and provide significant secured revenue to
our shareholders for the next two years. The recent time charter
contracts we have signed demonstrates the advantages of our
flexible fleet deployment strategy. By exercising discipline and
only engaging vessels on time charters that meet our strict return
requirements, we are able to continue to benefit from strong rate
environments and achieve substantial downside protection." The
exercising of these three options is part of a previously announced
decision to time charter up to nine Aframax OBO vessels. Including
these three most recent contracts, the charterer has now signed
seven of the nine time charters, which will guarantee net voyage
revenue to General Maritime of approximately $49 million in year
one. In year two, General Maritime is guaranteed a minimum of
approximately $40 million and could earn as much as $49 million.
The charterer also has an option to time charter two additional
Aframax OBO vessels, for a total of nine vessels. The exercising of
these two remaining options would provide the Company additional
net voyage revenue of $14 million, in year one, for total fixed net
voyage revenue of approximately $63 million in year one for all
nine vessels. These two time charters may be extended for an
additional year on similar terms to the seven vessels. Including
the most recent three charters, General Maritime has 14 of its 46
vessels, or 30% of its fleet, on time charter contracts. About
General Maritime Corporation General Maritime Corporation is a
provider of international seaborne crude oil transportation
services principally within the Atlantic basin and other regions
including West Africa, the North Sea, Mediterranean, Black Sea and
Far East. General Maritime Corporation owns and operates a fleet of
46 vessels -- 27 Aframax and 19 Suezmax tankers -- making it the
second largest mid-sized tanker company in the world, with more
than 5.5 million dwt. "Safe Harbor" Statement Under the Private
Securities Litigation Reform Act of 1995 This press release
contains forward-looking statements made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. These forward looking statements are based on management's
current expectations and observations. Included among the factors
that, in the company's view, could cause actual results to differ
materially from the forward looking statements contained in this
press release are the following: a material decline or prolonged
weakness in rates in the tanker market; changes in production of or
demand for oil and petroleum products, generally or in particular
regions; greater than anticipated levels of tanker newbuilding
orders or lower than anticipated rates of tanker scrapping; changes
in rules and regulations applicable to the tanker industry,
including, without limitation, legislation adopted by international
organizations such as the International Maritime Organization and
the European Union or by individual countries; actions taken by
regulatory authorities; changes in trading patterns significantly
impacting overall tanker tonnage requirements; changes in the
typical seasonal variations in tanker charter rates; changes in the
cost of other modes of oil transportation; changes in oil
transportation technology; increases in costs including without
limitation: crew wages, insurance, provisions, repairs and
maintenance; changes in general domestic and international
political conditions; changes in the condition of the company's
vessels or applicable maintenance or regulatory standards (which
may affect, among other things, the company's anticipated
drydocking or maintenance and repair costs); and other factors
listed from time to time in the company's filings with the
Securities and Exchange Commission, including, without limitation,
its Annual Report on Form 10-K for the year ended December 31, 2002
and its subsequent Reports on Form 10-Q and Form 8-K, and its
Registration Statement on Form S-4. DATASOURCE: General Maritime
Corporation CONTACT: William Viqueira, Chief Financial Officer of
General Maritime Corporation, +1-212-763-5677 Web site:
http://www.generalmaritimecorp.com/
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