d’Amico Signs Shipbuilding Contracts with HMD, South Korea

d’Amico International Shipping S.A., an international marine transportation company, operating in the product tanker market, announces yesterday that its operating subsidiary d’Amico Tankers Limited (Ireland), will enter into shipbuilding contracts for the construction of two additional new product/chemical tanker vessels (50,000 dwt Medium Range) with Hyundai Mipo Dockyard Co. Ltd. – Korea.

These are expected to be delivered between the end of 2014 and the beginning of 2015, for a consideration of about US$ 32.0 million each. d’Amico International Shipping S.A. was offered the opportunity to buy these two new vessels by exercising the option, as amended, attached to the contracts when it ordered its two ECO-40 Shallowmaxs, announced on July 26th,2012.

These two newbuildings are the latest IMO II MR design with the highest fuel efficiency. The design is the utmost HMD concept of hull shape and propulsion efficiency leading to a fuel saving of 6 -7 T /day compare to the average consumption of world existing MR fleet. The vessels will have an attained Energy Design Index (EEDI) falling already well within the IMO phase-in 3 requirement due for vessels to be built after Jan 1st 2025, being of 31,5% lower than the current IMO reference line.

As of today the fleet controlled by d’Amico Tankers Limited includes a total of 39 double-hull Medium Range (MR) and Handysize product tankers, with an average age of about 6.2 years.

Marco Fiori, Chief Executive Officer of d’Amico International Shipping S.A. commented: “I am delighted to announce this new deal for two additional MR Vessels which represents DIS’s 6th vessel ordering in the last 5 months. Attached to this transaction is also the option to order a further 2 ships at an attractive price. This clearly reaffirms DIS’s strategy to modernize its fleet through new buildings with eco innovative design. We strongly believe these types of vessels are set to be the future of our industry and their estimated timing of delivery perfectly matches our positive market outlook on the medium/long term.

Upon delivery these two ships will be the most advanced and efficient in terms of speed, consumption and deadweight & draft ratios among their size. These technical improvements will permit to improve current t/c equivalent rate revenue by an amount of at least US$ 3,000 per day. DIS intends to renew its fleet through accretive acquisitions with a goal of continuing to manage the capital structure and chartering mix in an effort to provide our investors with the optimal risk, return balance.”

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d’Amico, December 18, 2012; Image: HMD