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DIS announces the sale of one of the vessels owned by its JV DM Shipping
d’Amico International Shipping S.A. an international marine transportation company operating in the product tanker market, announces that DM Shipping d.a.c.(DMS), a joint venture company with the Mitsubishi Group, in which d’Amico Tankers d.a.c. holds a 51% participation, signed a memorandum of agreement for the sale of the MT High Strength, a 46,800 dwt MR product tanker vessel, built in 2009 by Nakai Zosen Corporation, Japan for a consideration of US$ 16.4 million. The Vessel will continue its current time-charter out contract with d’Amico Tankers d.a.c. until October 2019.
This transaction allows DM Shipping to generate around US$ 12.3 million in cash, net of commissions and reimbursement of the Vessel’s existing loan.
As of today, DIS’ fleet comprises 49.5 double-hulled product tankers (MR, Handysize and LR1) with an average age of about 7 years (of which 24 owned, 17.5 chartered-in and 8 bareboat chartered. DIS has also 4 vessels in commercial management). Currently, d’Amico Tankers has also shipbuilding contracts with Hyundai Mipo Dockyard Co. Ltd., for the construction of 1 LR1 (Long Range) product tanker expected to be delivered in 2019.
Paolo d’Amico, Chairman and Chief Executive Officer of d’Amico International Shipping, stated: “I am satisfied to announce the conclusion of this deal, which will generate a very positive net cash effect, of approximately US$ 12.3 million, for DM Shipping, our 51/49 joint venture company with the Mistubishi Group. We saw strong interest from potential buyers for the Vessel and were able to sign the memorandum of agreement within a relatively short period of time. The increasing appetite from buyers and period charterers over the last few months, is evidence of the strong medium-term fundamentals of the sector, and of the imminent anticipated market recovery. In addition, this transaction will allow us to sell a 2009-built vessel and is therefore in line with our long-term objective of maintaining a very young and modern fleet.”