Singapore: ES Group Launches First Bunker Vessel for Charter

Catalist-listed ES Group (Holdings) Limited had on 2 June 2012 launched the 3,400 dead-weight-tonne Sea Tanker I, the first of its two bunker vessels constructed at ES Group’s 50 per cent-owned subsidiary’s shipyard in Thailand.

This marks a major milestone for the Group to establish its vessel-owning and chartering business and expand beyond its core business of new building, conversion and repair of ocean-going vessels. Sea Tanker I is owned by ES Group’s wholly-owned subsidiary, ES Shipping Pte. Ltd..

Long-term charter agreements have been secured for both vessels to operate in the South East Asian waters. Upon delivery in the third quarter of 2012, Sea Tanker I will be chartered to Sea Hub Tankers Pte Ltd. The second bunker vessel is scheduled for completion and deployment in the second half of the financial year ending 31 December 2012 (“2H2012”). Barring any unforeseen circumstances, they are expected to contribute to the Group’s financial performance beginning 2H2012.

ES Group provided engineering, procurement and construction (“EPC”) services for the two new-built and double-hulled vessels, fully complying with the new requirements for bunker vessels. “With Singapore as a shipping hub and the world’s largest bunker port by sales volume, we see growth opportunities in bunkering. Venturing into vessel-owning and chartering will allow the Group to ride on the growth in this expanding industry,” said ES Group’s Chief Executive Officer, Mr Christopher Low.

“The successful and timely completion of this first wholly-owned bunker vessel is also testimony to the Group’s expertise in the provision of EPC services and construction of this class of vessels, a skill which we will now build upon to enlarge our fleet,” he said.

ES Group announced that its net profit rose 256.9% to S$4.5 million on the back of S$47.1 million revenue for the financial year ended 31 December 2011.

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Source: ES Group, June 4, 2012