Maritrans Part (NYSE:TUG)
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Maritrans Inc. (NYSE:TUG), a leading U.S. flag marine
petroleum transportation company, today announced that it has signed a
contract with Bender Shipbuilding & Repair Co., Inc. to build three
new articulated tug-barge units, each having a carrying capacity of
335,000 barrels. Each barge will be connected to a 12,000 horsepower
tug boat utilizing the latest version of the Intercon connection
system.
The Company also announced that it has signed a long-term volume
contract for lightering services with Sunoco Inc. (R&M). Maritrans
estimates that approximately 70% of the annual total barrels lightered
by the Company will be fulfilled through the Sunoco contract, while
the remaining volume will be delivered to other Maritrans lightering
customers on the Delaware River.
Construction of the three new vessels will take place at both the
Bender Shipbuilding facility in Mobile, Alabama and at their
affiliated company, the Tampa Bay Shipbuilding & Repair Company, in
Tampa, Florida. Maritrans estimates that the total cost of
construction, including owner furnished equipment, will be
approximately $77.5 million for each tug-barge unit. Maritrans expects
to take delivery of the first unit in October of 2007, with the
remaining two vessels expected to be delivered seven months apart in
May and December of 2008, respectively. With the addition of the three
units, Maritrans will become not only the largest owner/operator of
vessels in its class size, but will also be the largest tug & barge
U.S. coastwise operator based on carrying capacity.
Jonathan Whitworth, Chief Executive Officer of Maritrans
commented, "We are extremely pleased to announce that Maritrans is
building three of the largest and most modern tug-barge units in the
Jones Act fleet and entering into a long-term contract with Sunoco.
Today's announcements not only demonstrate our commitment to execute
on our strategic growth initiatives outlined earlier in the year, but
they also strengthen our relationship with two important strategic
partners, Sunoco and Bender Shipbuilding, while positioning the
Company to take advantage of strong long-term lightering demand in the
Delaware Bay region. Going forward, we will remain steadfast in our
approach to seeking growth opportunities that adhere to our strict
return requirements for the benefit of our shareholders. At the same
time, we will continue to focus on providing our customers with
superior service that meets the highest safety and environmental
standards."
CONFERENCE CALL INFORMATION
Maritrans' management will host a conference call on September 6,
2005, at 2:00 p.m. eastern time, to discuss the Company's announced
three new tug-barges and the contract for lightering services with
Sunoco. To access this call, please dial (800) 633-8581. A replay of
the call may be accessed by dialing (800) 633-8284 and providing the
reservation number 21259710. The replay will be available from 5:00
p.m. eastern time on September 6, 2005, to 11:59 p.m. eastern time on
September 13, 2005. The conference call will also be webcast live on
the Company's website, www.maritrans.com, and will be available on the
website through September 20, 2005.
ABOUT MARITRANS
Maritrans Inc. is a U.S. based company with a 77-year commitment
to building and operating petroleum transport vessels for the U.S.
domestic trade. With 16 units, Maritrans has the largest fleet in its
size category and one of the largest serving the U.S. coastwise trade.
The fleet consists of five oil tankers and eleven oceangoing married
tug/barge units with an aggregate fleet capacity of approximately 3.9
million barrels, of which 63 percent is double-hulled. Maritrans has
two primary areas of focus: transporting refined products in the Gulf
of Mexico to growth areas such as Florida and supplying Philadelphia
area refineries with crude oil lightering from large foreign tankers.
Maritrans is headquartered in Tampa, Florida, and maintains an office
in the Philadelphia area.
ABOUT BENDER
Bender Shipbuilding & Repair Co., Inc., a third-generation
family-owned company, is a leading mid-tier shipyard that builds,
converts and repairs ocean-going vessels.
SAFE HARBOR STATEMENT
The information in this news release includes certain
forward-looking statements. These statements involve known and unknown
risks, uncertainties and other factors that may cause actual results,
levels of activity, growth, performance, and earnings per share or
achievements to be materially different from those expressed in or
implied by such forward-looking statements. These statements are based
on assumptions the Company believes are reasonable, but a variety of
factors could cause the Company's actual results, goals, targets or
objectives to differ materially from those contemplated, projected,
forecast, estimated, anticipated, planned or budgeted. Such factors
include, among others, changes in oil companies' decisions as to the
type and origination point of the crude that it processes, changes in
the amount of imported petroleum products, competition for marine
transportation, domestic oil consumption, the continuation of federal
law restricting United States point-to-point maritime shipping to U.S.
vessels (the Jones Act), the timing and success of our double-hull
rebuilding program, demand for petroleum products, future spot market
rates, demand for our services, levels of foreign imports, changes in
interest rates, the effect of war or terrorist activities and the
general financial, economic, environmental and regulatory conditions
affecting the oil and marine transportation industry in general. The
Company is under no duty to update any of these forward-looking
statements after the date of this release to conform such statements
to actual results.