Global Carriers Buys Two Petroleum Tanker Vessels

Global Carriers Buys Two Petroleum Tanker Vessels

Global Carriers Bhd has purchased two new 7,000 deadweight tonnage (DWT) twin petroleum product tanker vessels valued at US$9.98 million each from Ningbo Dongfang Shipyard of China.

The first tanker vessel will be delivered in May 2008 and the second in August 2008, said Global Carriers’ chairman Datuk Azlan Hashim.

The company also has the option to purchase two more tanker vessels of similar size and capacity within the next six months, which it is likely to exercise, he said at the signing ceremony here Monday.

The company currently has a fleet size of six 7,000 DWT single-hull and a 12,000 DWT double-hull tanker vessels and with the current purchase, it will have by the middle of 2008 a fleet a total of nine tankers, Azlan said.

“The new 7,000 DWT double-hull clean petroleum product tankers will be utilised to cater for the West and East Malaysia and Singapore routes,” he said.

Azlan said the purchase will be financed mainly by internally generated funds, especially from the RM90 million that it received for selling two container ships last year as well as bank borrowings.

Its borrowings currently stood at RM100 million.

Ningbo Dongfang was picked after Global Carriers had shortlisted five shipyards.

“We are very impressed with the set-up and facilities available at the Ningbo Dongfang where the two vessels will be built,” Azlan said.

“We are also confident that the vessels will be of a high quality and will be delivered on schedule,” he said.

Azlan said the orders for additional vessels were placed with the expected strong growth in the economies of Malaysia and neighbouring countries, whereby greater demand for processed petroleum will trigger the need for tranportation.

“Global Carriers’ replacement plan of its single-hull tanker carriers as well as increasing its DWT capacity is in response to this development,” he said.

The company is on track to increase its DWT capacity from 48,000 DWT to about 100,000 DWT by 2011, according to Azlan.

The replacement plan will cost Global Carriers about RM250 million, he said.

“All our vessels generate good income,” Azlan said, adding that 60 per cent of the company’s vessels are on charter and the remaining on spot rates.

Its 7,000 DWT vessel is earning US$6,000 per day while the 12,000 DWT vessel is bringing about US$12,000 per day.

Global Carriers also hoped to maintain its financial performance, Azlan said.

For the six months ended June 30, 2006, Global Carriers posted a pre-tax profit of RM29.166 million, up from RM10.745 million in the same period last year.

Its turnover in the six-month period stood at RM46.53 million, up from RM45.17 million previously.

For its financial year ended Dec 31, 2005, the company registered a pre-tax profit of RM22.92 million, up from RM17.11 million in the previous year.

Turnover rose to RM100.24 million from RM83.74 million in 2004.

Going forward, the company is expected to diversify into shipping other energy products such as palm oil and gas as well as chemical products, Azlan said.

Am Bank Bhd has a 15 per cent stake in Global Carriers.


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