StealthGas Acquires Four New LPG Ships
StealthGas, a ship-owning company primarily serving the liquefied petroleum gas (LPG) sector of the international shipping industry, announced as part of its fleet expansion program the acquisition of four newbuilding LPG vessels.
The additions to the fleet consist of two 22,000 cbm semi refrigerated eco LPG carriers scheduled to be delivered in the first quarter of 2017 from Hyundai Mipo with owners options for another two vessels. The company has agreed to cancel two 5,000 cbm pressurized newbuildings under construction at STX in Korea and the company will be refunded all amounts advanced to date for those vessels. These newbuilding orders will be replaced by a 7,500 cbm pressurized eco LPG carrier scheduled to be delivered in the first quarter of 2016 and a 7,200 cbm pressurized eco LPG carrier scheduled to be delivered in the third quarter of 2016. Both vessels will be built in Japan at unnamed yards, one thought to be Murakami Hide of Japan.
Under its fleet expansion program the company has agreed to acquire a total of 19 newbuilding LPG carriers, including two LPG carriers, the Eco Stream and the Eco Chios that were delivered on schedule in March 2014 and in May 2014, respectively. Deposits of $83 million have already been paid for the remaining 17 newbuilding LPG carriers and the company intends to fund the remaining capital expenditure of approximately $308 million through bank finance and available cash. The company has concluded negotiations with banks for firm commitments to finance 13 of these vessels for an amount up to $171 million, and is in discussions with financial institutions for additional bank finance of approximately $96 million for the remaining vessels including the four newbuilding vessels whose acquisitions were announced today. With these additions to the fleet our total asset value will amount to approximately $1.05 billion.
The Company also announced the conclusion of the following chartering arrangements:
A one year time charter for its 5,013 cbm, 1994 built, LPG carrier, Gas Emperor, to an international trading house until January 2016.
A four month time charter for its 5,000 cbm, 2003 built, LPG carrier, Gas Prodigy, to an international gas trader, until November 2014.
A one year extension of the current charter for its 5,000 cbm, 2011 built, LPG carrier, Gas Cerberus, to an international trading house until July 2015.
A one year extension of the current charter for its 5,000 cbm, 2006 built, LPG carrier, Gas Ethereal, to an international trading house until September 2015.
A one year time charter for its 3,500 cbm, 1998 built, LPG carrier, Gas Legacy, to an established owner-operator until May 2015.
A one year time charter for its 3,500 cbm, 2008 built, LPG carrier, Sakura Symphony, to an established owner-operator until September 2015.
A seven year bareboat charter for its newbuilding 3,500 cbm LPG carrier, Eco Elysium, to be delivered August 2014, to an established owner-operator.
A seven year bareboat charter for its newbuilding 3,500 cbm LPG carrier, Eco Royalty, to be delivered April 2015, to an established owner-operator.
A seven year bareboat charter for its newbuilding 3,500 cbm LPG carrier, Eco Loyalty, to be delivered May 2015, to an established owner-operator.
With these charters the Company is securing additional revenues of approximately $50 million, out of which 85% is generated by the 3,500 cbm LPG carriers, the smallest size vessels in the fleet. The company now has contracted revenues that amount to approximately $250 million.
CEO Harry Vafias commented: "We are very excited to announce the ordering of new generation 22,000 cbm semi refrigerated eco LPG carriers in one of the best yards in the world that will complement well our leading pressurized fleet. Moreover the announcement of new employments especially three very long charters, only amplifies our belief that good times are ahead."