Thurssday, August 16 2000
Firm Contract for 4 new LPG/ethylene
The total contract price for the four vessels
(exclusive of the 6 option vessels and all pre-delivery charges
and delivery costs) will be about $83 million, or $20.8 mill
per vessel. Pre-delivery, finance and other costs of about $5
million will take this to about $88 million per ship. The first
vessel will be delivered from the yard in March 2002 and the
The financing for the new company to purchase the first four vessels has been confirmed, and will not require Skaugen to issue any further equity.
"As a result of the close cooperation
with our partners," said CEO Morits Skaugen, "we have
developed a fully financed newbuilding project that only will
require cash injection of minor amounts of equity during construction.
After construction the available financing is for about 85% of
the newbuilding price."
The vessels will all be part of Skaugen's NGC fleet which currently consists of 14 gas carriers (13 with ethylene capacity) and with about 100,000 cbm capacity, operating in the revenue pool.
Skaugen said the four ship newbuilding
project was in line with the company's strategy of strengthening
the position of NGC as the second largest ethylene carrier in
the world as well as its long term
Over recent years, I. M. Skaugen has negotiated
and explored several acquisition possibilities in the second-hand
market without finding the ideal candidates at the right price
and terms, noted Skaugen.
Newbuilding prices for such vessels have
declined about 35% over the
IMS chose the Zhonghua yard because of
its "on time" and "on specification" delivery
performance record and "the fact that the well reputed Shanghai
Edwards Shipyard, which has long experience in building such
gas carriers, is now a part of this yard,"