Gulf Navigation to purchase 4 petrochemical carriers
Thursday, 05 Nov 2009
Emirates Business reported that Gulf Navigation, despite posting 91% decline in profits for the January to September of 2009 is in discussions with an unnamed firm to purchase 4 petrochemical carriers and seeks to expand its fleet of tankers via acquisitions and new manufacturing.
Mr Abdullah Al Shuraim chairman of Gulf Navigation Holding said that "The board of directors discussed the study submitted for the purchase of 4 petrochemical carriers with high specifications and authorized the executive committee to carry out the final stage of negotiations provided a satisfactory price can be obtained."
He said that "In addition, the board has instructed the executive committee and the company's management to carry on looking for best opportunities to buy crude oil and product tankers, either through acquisition or new buildings of low prices which will assuredly achieve the company's strategy to increase its fleet."
He added that during the last quarter the firm has continued to confront the major challenges facing the shipping industry worldwide and in spite of the difficulties, has managed to generate positive cash flows and a positive bottom line. The loss of certain time charter contracts due to chatterers being unable to fulfill their contractual commitment forced the company to place some vessels on the spot market.
Mr Per Wistoft CEO of Gulf Navigation said that however, the company, which owns 15 tankers including new buildings and charters VLCC, Suezmax, chemical and product tankers in addition to 4 crew boats is not planning to revise charter contract rates to offset the loss of certain time charter contracts.
He said that "We believe that once a contract is entered it is there to be honored by both parties. The Dubai listed firm recorded net profits of AED 11.62 million for the 9 month period ended September 30th 2009 down 91% from AED 136.9 million during the same period of 2008.
Mr Wistoft said that "The Company has filed a lawsuit of USD 52 million of charter due for the remainder of the contract and is expected to obtain good portion of that amount after the competent court's verdict is issued, which will certainly improve the company's results. However, the company is not looking for fresh capital by way of rights issue or debt. He agreed, however, that over capacity or over ordering of ships in the face of declining demand has dampened the bottomline of the company in Q3.
