JES International Holdings Limited: Update on Contracts
16 January 2009
The Directors of JES International Holdings Limited (“JES” or the “Group”) would
like to provide an update on the status of its shipbuilding contracts. Two of the
Group’s customers have negotiated for revisions to their shipbuilding contracts,
in view of the current economic and operating conditions.
The two customers placed orders for eight and four units of 37,500dwt bulk
carriers respectively. Under the revisions, four units from one customer and two
units from the other customer will be cancelled while the delivery dates for the
other remaining six units with these two customers will be delayed for a period of
two to four months. Construction work for the cancelled contracts has yet to
commence. In addition, any deposits received for the cancelled contracts have
been agreed to be used for the other vessels to be constructed for these same
two customers.
The total value of the six cancelled orders approximates US$160.0 million. As at
30 September 2008, JES’s order book stood approximately at US$1.43 billion.
The above revisions and cancellations are not expected to have any material
impact on the financial results for the Group for the year ended 31 December
2008.
JES International Holdings Limited
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