Denmark: Ultrabulk Confirms Addition of Five Units to Its Fleet

In addition to the announcement covering three newbuilding units made by Ultrabulk on March 19 th, Ultrabulk now confirms having added five further units to its long term fleet.

The new units are one additional 61,000tdw Supramax bulker to be built at a Japanese yard and scheduled for delivery 2016, joined by another 81,000tdw Kamsarmax bulker for delivery in 2015.

Both of these units are of the new generation Eco – type design and scheduled to be delivered on up to 12 and 13 years charter to the Ultrabulk platform and includes the option for Ultrabulk to buy the vessels during the charter period.

Ultrabulk also concluded an existing 81000tdw Kamsarmax bulker for up to 7 years charter. Ultrabulk has further expanded their contract with Japanese builder Oshima Shipbuilding Company from previously confirmed two to three units of the new generation Eco – type Han dysize bulkers of 37,000tdw.

While the first two units were ordered as Ultrabulk own purchase, the third unit has been confirmed with the support from Japanese partners, and will enter the Ultrabulk platform on a time charter of up to 8 years and also includes the option for Ultrabulk to buy the vessel during the charter. The third Oshima built vessel is scheduled for delivery in 2015.

“This is a natural development for our long term fleet renewal program that we started in 2012 when we contracted three firm units within the handysize segment,” says Henrik Sleimann Petersen, Executive Vice President and Head of Ship Holdings and continues: “There are still considerable challenges facing the dry bulk market in the years to come with a very sizeable order book, but we consider newbuilding contract prices have reached a level where we, with strong support from long term financial and commodity partners, have been able to continue our commitment to the long term market by adding additional units to our fleet.”

Ultrabulk further announces having entered into a 50/50 joint – venture with Norwegian shipping fund “Maritime Opportunities” for the joint ownership of two 36,000tdw Handysize bulkers to be built at Chinese yard, Samjin Shipbuilding. The first vessel was contracted by Ultrabulk in 2012, and with the establishment of the joint – venture, Ultrabulk has now declared the option for the second unit. This second vessel is scheduled for delivery in 2015. Both vessels will upon completion of construction from the yard enter the Ultrabulk commercial platform.

“Ultrabulk has always been open to joint – venture structures with both financial and commodity partners, but the conclusion of the joint venture with Maritime Opportunities is a first for us. This does come as a natural development in the market where equity funds have renewed appetite to co – invest in the shipping sector,” says Per Von Appen, Executive Vice President and Head of Handysize, and concludes “it’s a good match with a strong equity partner who values our well established platform in the dry bulk market”.

Ultrabulk continues to focus on new generation Eco – type designs built at reputable yards. The primary source of the Ultrabulk future fleet remains to be the Japanese market, but with the confirmation of a 2nd unit from Samjin Shipbuilding the commitment has also ventured into China.

[mappress]
Ultrabulk, May 8, 2013