Gulf Navigation announces receipt of full refund of second terminated new building contract
Dubai, 15th June 2010 - Gulf Navigation Holding PJSC (DFM: GULFNAV) the leading ship owning and Maritime Services Company in the region, announces that Gulf Mizhar Shipping Inc. ("Gulf Mizhar"), a wholly owned subsidiary of Gulf Navigation Holding PJSC, has now also received full payment along with interest from SLS Shipbuilding Co. Ltd of Tongyeong, Korea (“SLS”) in respect to its termination of the new building contract relating to the 44,000 DWT product/chemical tanker vessel bearing hull n° S489 (the “Contract”). The amount received is in excess of USD 35m, bringing the total amount received in excess of USD 70m. The contract was terminated due to excessive delays in relation to the delivery of the vessel.
Now having received its full payment with interest for both vessels, the Company is in a strong position to execute new purchases at current market rates significantly lower than before. The refund of the interest bearing instalments will have a positive effect on the company’s result, and increase its cash reserves to help with future acquisitions.
Gulf Navigation Holding PJSC and its group companies own and operate crude, PROBOS and chemical tankers. It is an ISO 9001:2000 certified, Dubai-based and United Arab Emirates Holding Entity with operations worldwide. It leads the shipping and marine services industry in the region. It has 11 specialized subsidiaries and owns 15 tankers including new buildings and charters VLCC, Suezmax, Chemical and Product Tankers in addition to 4 crew boats. A total carrying capacity of approximately 1.3 million dwt. It is also the sole agency for a number of global marine manufacturers and the only maritime and shipping company listed on the Dubai Financial Market
Gulf Navigation Holding PJSC