Omega Acquires Two Tankers

Source: Marinelink

Omega Navigation Enterprises agreed to acquire two resale newbuilding double hull handymax oil product/chemical IMO III tankers for $55.5m each from an unaffiliated third party. The vessels each have a capacity of approximately 47,000 dwt and are both currently under construction at Hyundai Mipo Shipyard, South Korea.

The first vessel is expected to be delivered on or about the second quarter of 2009 and the second vessel is expected to be delivered on or about the third quarter of 2010.

Payment terms provide for a 10% deposit payment, payable now, and the balance of 90% at the respective deliveries of each vessel. The Company has secured bank financing at competitive terms for 90% of the deposit payment and 75% of the entire purchase price.

Each vessel has currently secured employment to ST Shipping, a subsidiary of Glencore International, AG, under a three year time charter commencing at the time of delivery at a gross daily rate of $21,135. The time charters on both vessels include profit sharing arrangements settled on a quarterly basis, pursuant to which earnings from the vessels in excess of $21,135 per day will be divided equally between owners and ST Shipping.

With the addition of these two vessels, Omega's fleet will expand to 15 product tankers, including seven newbuilding handymax vessels, expected to be delivered between the second quarter 2009 and early 2011, with a total deadweight capacity of 791,358 dwt.