21 Aug 2008 07:00
Goldenport Holdings Inc.
Athens, 21st August 2008
Conclusion of Two New-Build Dry Bulk Carrier Contracts Expanding Fleet to 33 Vessels
Goldenport Holdings Inc. ("Goldenport" or "the Company"), (LSE: GPRT) the international shipping company that owns and operates a fleet of containers and dry-bulk vessels, annouces that as of today it has entered into contracts for the construction of two additional bulk carrier vessels of 57,000 DWT each, with Qingshan Shipyard of China (member of Changjiang National Shipping Group), for a total consideration of US$ 91.66 million, with estimated delivery in December 2010.
The initial deposit of US$ 27.36 million was paid with US$ 8.82 million from cash reserves, US$ 10.00 million through an existing credit facility and US$ 8.54 million through the draw-down of a new loan facility, specifically arranged for this project.
The remaining payments will be made to the yard based on the construction process schedule and will be financed by a mixture of cash reserves and the new loan facility, as follows:
| Construction stage | Construction Cost | Cash | Loan Facility |
| Steel Cutting | 13.68 m | 9.00 m | 4.68 m |
| Keel Laying | 18.24 m | - | 18.24 m |
| Launching | 13.68 m | - | 13.68 m |
| Delivery | 18.70 m | - | 18.70 m |
Upon delivery, the first vessel will be immediately employed under an agreed time charter at the rate of US$ 27,000 per day for three years with a high quality charterer.
Both vessels are fuel efficient, geared bulk carriers with extensive trading flexibility and of similar design to the other six new-build Supramaxes already on order.
Captain Paris Dragnis, Chief Executive Officer of Goldenport, commented: "Following the sale of our aged bulk carriers 'Samos' and 'Ios', on which we realized strong profits of more than $33.0 million, we wanted to maintain the balance between containers and bulk-carriers in our fleet and also to expand the fleet with younger tonnage, thereby extending the economic life of the Company's asset base.
Given the current high prices of second hand bulk carriers, we decided to invest in two additional new building Supramaxes, which are in our preferred sub-segment of the bulk market.
Our conservative strategy and low gearing allowed us to finance this project with a loan from a high quality shipping bank, despite the current tightening conditions in the global credit markets.
Our new-building program now includes two Sub-Panamax container vessels with deliveries scheduled for 2010 and 2011 and eight Supramax dry bulk carriers with deliveries scheduled for 2008, 2009 and 2010. This will expand our fleet to a total of 33 vessels comprised of 18 container vessels and 15 dry-bulk carriers.
Our bulk carrier fleet of 15 vessels will include 12 Supramaxes, of which 8 will be brand new. Consistent with our strategy of securing profitable long term employment for our fleet, we have already secured time charters for five of the eight Supramaxes under construction, thereby reinforcing our ability to weather through future market conditions. Furthermore, the 12 Supramaxes will include four groups of sister vessels which we believe provides economies of scale to the Company
We believe that our further expansion in the Supramax segment of the dry bulk market reinforces our position in this segment of our strategic focus, enhances the earning potential of our Company for the longer term and is in line with our prudent expansion strategy of acquiring vessels reasonably priced compared to prevailing market conditions. It also enables us to improve our service to the major clients we have been serving through the years.
With our strong and stable cash flows and low gearing, Goldenport is today strategically placed to take full advantage of market opportunities further enhancing shareholder value. In this context we continue to evaluate and consider a number of opportunities for the acquisition of second hand containers, to further enhance our fleet in accordance with our investment strategy and objectives".
- ENDS -
For further information, please contact:
Goldenport Holdings Inc.:
Christos Varsos, Chief Financial Officer +30 210 8910500
John Dragnis, Commercial Director +30 210 8910500
Investor Relations Coordinators:
Capital Link:
Annie Evangeli - London +44 203 206 1320
Nicolas Bornozis - New York +1 212 661 7566
E-mail: goldenport@capitallink.com
Further Information:
Overview of Goldenport
Goldenport is an international shipping company that owns and operates a fleet of thirty-three (including the vessels mentioned above) container and dry bulk vessels that transport cargo worldwide. The fleet consists of eighteen container vessels (including two new-build vessels with deliveries scheduled for 2010 and 2011) and fifteen dry bulk carriers (including eight new-build vessels with deliveries scheduled for 2008, 2009 and 2010). Goldenport is listed on the London Stock Exchange under the ticker GPRT.
Website: www.goldenportholdings.com or www.goldenport.biz