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Simultaneously, Gulf Navigation Holding signed two agreements with Grand China Logistics Holding (Group) Co. LTD to time charter the vessels for 10-years each upon delivery. The charter agreement has a profit-sharing mechanism once a ceiling is reached, and is worth approximately AED 1.05 Billion (US$ 284.7 million). The new vessels will join the “Gulf Eyadah” which was delivered in January 2011, and “Gulf Sheba” to increase Gulf Navigation’s VLCC fleet to 4 and its carrying capacity to 8 Million barrels. The Company plans to expand the VLCC fleet to 9 (18 million barrels) by 2015, as part of the 5-year shareholder-value improvement strategy which started this year. The plan also calls for expansion of the chemical fleet, entry into the Aframax and offshore markets and listing of subsidiaries in international stock exchanges. Company results are expected to reflect such key achievements in profitability as they occur. The signing of the VLCC building and charter contracts with major Chinese groups mark a strong entry of Gulf Navigation Holding into the Chinese market, which is witnessing a huge surge in oil consumption. China’s crude oil demand is forecast to increase to 10.5 Million barrels per day in 2015 from 8.1 Million barrels a day in 2009. About Gulf Navigation Holding PJSC: 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 press release |
Gulf Navigation Holding signs 10–year charter agreements worth AED 1 Billion for 2 VLCC New Buildings