Homepage
PR Newswire
16-06-2011, 05:15 AM
More capex!
Business Times - 16 Jun 2011
NOL orders new ships and upgrades worth US$1.54b
Ten of the vessels will be 14,000 TEUs, its largest and most fuel efficient
By JOYCE HOOI
CONFIRMING talk of a big shipbuilding deal, Neptune Orient Lines (NOL) has signed a letter of intent to build 12 new container ships in South Korea - 10 of which will be its largest ones ever. It will also be making the ships that it ordered last year even larger, which together with the new ships will cost about US$1.54 billion.
Of the 12 new ships, the largest ones - ten 14,000-twenty foot-equivalent unit (TEU) vessels - will be built at Hyundai Samho Heavy Industries Co.
Before this, the largest ships ordered by NOL were in the 10,000-TEU range, slated to be delivered in mid-December this year. The largest ships in its fleet currently are in the 8,000-TEU range.
The 14,000-TEU ships will be NOL's most fuel-efficient ships and will be used for its Asia-Europe trade, according to the group.
The remaining two 9,200-TEU ships being ordered will be built at Daewoo Shipbuilding & Marine Engineering Co, NOL said in a statement released on the Singapore Exchange after the market closed yesterday.
The 9,200-TEU vessels are 'likely be employed in the Trans-Pacific trade', according to NOL.
NOL's share price hit an 18-month low yesterday, falling 8 cents - or 4.97 per cent - to $1.53 as the sixth-most heavily traded stock on the Singapore Exchange.
On top of the new ship orders, NOL also said that it will be making 10 of the ships that it had ordered from Daewoo last year even larger - upsizing them from 8,400 TEUs to 9,200 TEUs. NOL said these upgraded ships will also have a new and more efficient design and technology.
Both the new and upgraded ships are scheduled for delivery in 2013 and 2014.
NOL is buying new and larger ships to 'reduce unit capital and operating costs, meet future growth needs and replace older and smaller chartered vessels that will be returned to their owners in the charter market'.
Last week, NOL said that it would issue $300 million in euro medium term notes to partially finance the buying of new container ships.
The notes - which bear an interest of 4.4 per cent - will be due in 2021 under NOL's US$1.5 billion euro medium term note programme that it had set up last year.
Business Times - 16 Jun 2011
NOL orders new ships and upgrades worth US$1.54b
Ten of the vessels will be 14,000 TEUs, its largest and most fuel efficient
By JOYCE HOOI
CONFIRMING talk of a big shipbuilding deal, Neptune Orient Lines (NOL) has signed a letter of intent to build 12 new container ships in South Korea - 10 of which will be its largest ones ever. It will also be making the ships that it ordered last year even larger, which together with the new ships will cost about US$1.54 billion.
Of the 12 new ships, the largest ones - ten 14,000-twenty foot-equivalent unit (TEU) vessels - will be built at Hyundai Samho Heavy Industries Co.
Before this, the largest ships ordered by NOL were in the 10,000-TEU range, slated to be delivered in mid-December this year. The largest ships in its fleet currently are in the 8,000-TEU range.
The 14,000-TEU ships will be NOL's most fuel-efficient ships and will be used for its Asia-Europe trade, according to the group.
The remaining two 9,200-TEU ships being ordered will be built at Daewoo Shipbuilding & Marine Engineering Co, NOL said in a statement released on the Singapore Exchange after the market closed yesterday.
The 9,200-TEU vessels are 'likely be employed in the Trans-Pacific trade', according to NOL.
NOL's share price hit an 18-month low yesterday, falling 8 cents - or 4.97 per cent - to $1.53 as the sixth-most heavily traded stock on the Singapore Exchange.
On top of the new ship orders, NOL also said that it will be making 10 of the ships that it had ordered from Daewoo last year even larger - upsizing them from 8,400 TEUs to 9,200 TEUs. NOL said these upgraded ships will also have a new and more efficient design and technology.
Both the new and upgraded ships are scheduled for delivery in 2013 and 2014.
NOL is buying new and larger ships to 'reduce unit capital and operating costs, meet future growth needs and replace older and smaller chartered vessels that will be returned to their owners in the charter market'.
Last week, NOL said that it would issue $300 million in euro medium term notes to partially finance the buying of new container ships.
The notes - which bear an interest of 4.4 per cent - will be due in 2021 under NOL's US$1.5 billion euro medium term note programme that it had set up last year.
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/