General Maritime (NYSE:GMR)
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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/