Annual Report
News
Global Oceanic Carriers Ltd. Announces Acquisition of a Handymax Dry Bulk Carrier Expanding Fleet To Seven Vessels
10 July 2007
Global Oceanic Carriers Limited (LSE:GOC), a global provider of marine transportation services for dry bulk cargoes, announces today that the Company has entered into an agreement to purchase a Handymax vessel charter-free for $37 million.
The vessel, acquired from ABG Shipping Limited will be renamed to M/V "GO Friendship" and is scheduled for delivery in August 2007. The M/V "GO Friendship" was built in Korea in 1994 and has a carrying capacity of 44,875 dwt. The company intends to finance this acquisition with banking facilities.
Upon delivery, the M/V "GO Friendship" will operate under a fixed-rate period time charter for 3 years with SAMSUN GLOBAL CORPORATION at the gross rate of USD 26,850 per day.
The company's current fleet includes five dry bulk carriers, comprised of one Capesize, two Panamax, one Handymax and one Handysize vessel, and, as already announced, has entered into two agreements to acquire two Handymax vessels scheduled for delivery in August (GO Friendship) and October (GO Star) 2007, thereby expanding its fleet to a total of seven dry bulk carriers with an aggregate carrying capacity of 456,273 dwt.
The company has secured under fixed rate time charter employment 100% of its fleet operating days for 2007 and 83.5% for 2008.
Michael Tartsinis, Chief Executive Officer of Global Oceanic Carriers, commented: "We are pleased to continue with our fleet renewal and expansion program. This latest acquisition expands our fleet to a total of seven vessels with an aggregate carrying capacity of 456,273 dwt and lowers our fleet average age to 16 years. Consistent with our strategy of seeking long term employment for our vessels, we have secured for the M/V "GO Friendship" a 3 year time charter with Samsun Global Corporation, a first class charterer, expected to generate approximately $ 29.4 million in revenues for the duration of the time charter. This further enhances the stability and predictability of our cash flows, enabling us to continue with our fleet expansion plans."
Christina Anagnostara, Chief Financial Officer of Global Oceanic Carriers stated: "By taking advantage of our low gearing, we intend to finance this acquisition through banking facilities thereby expecting to enhance shareholder value."
Fleet Profile:
The table below describes the Company's fleet development and deployment as of today:
| Vessel Name | Type | DWT | Year Built | Charter Commencement | Charter Period | Expected Re-Delivery (Minimum period) | Daily Charter Hire (US$) |
| GO Patoro | Cape - size | 150,108 | 1991 | June-07 | 35 months | June-10 | $32,000(1) |
| GO Public | Panamax | 71,761 | 1993 | Dec-06 | 23-25 months | Nov-08 | $21,000 |
| GO Faith | Panamax | 65,125 | 1984 | May-07 | 12-14 months | May-08 | $28,000 |
| GO Trader | Handy-max | 45,693 | 1996 | Jan-07 | 26-29 months | Mar-09 | $19,250 |
| GO Pride | Handy-size | 35,055 | 1982 | Jun-07 | 12 months | Jun-08 | $18,500 |
| Fleet Total : 5 Vessels |
367,742 | ||||||
Additional Vessels (with expected delivery dates and with charters commencing upon delivery)
| Vessel Name | Type | DWT | Year Built | Charter Commencement | Charter Period | Expected Re-Delivery (Minimum period) | Daily Charter Hire (US$) |
| GO Friendship (2) | Handy-max | 44,875 | 1994 | Aug-07 | 36 months | Aug-10 | $26,850 |
| GO Star (3) | Handy-max | 43,656 | 1994 | Oct-07 | 36 months | Oct-10 | $26,500 |
| Grand Total: 7 Vessels |
456,273 | ||||||
(1) The M/V "GO Patoro" is currently employed under a Time Charter until June 2010. The above mentioned daily charter rate of $32,000 refers to the first year of the charter until June 2008, while the daily rate will be $27,000 and $22,000 for the second and third years of the time charter ending in June 2009 and June 2010 respectively.
(2) The M/V "GO Friendship" is scheduled for delivery in August 2007.
(3) The M/V "Go Star" is scheduled for delivery in October 2007.
For further information:
| Global Oceanic Carriers Limited | |
| Michael Tartsinis, Chief Executive Officer | Tel: 00 30 210 898 6362 |
| mtartsinis@gocarriers.com | www.gocarriers.com |
| Jefferies International Limited | |
| Andrew Meigh | Tel: +44 (0) 20 7 618 3500 |
| ameigh@jefferies.com | www.jefferies.com |
Media enquiries:
| Taylor Rafferty - Capital Link (London) | |
| Natassa Markopoulou | Tel. +44 (0)20 7614 2950 |
| gocarriersuk@capitallink.com | |
| Capital Link, Inc. (New York) | |
| Paul Lampoutis | Tel. +1-212-661-7566 |
| plampoutis@capitallink.com | www.capitallink.com |
Notes to Editors
Global Oceanic Carriers Limited is a global provider of marine transportation services for dry bulk cargoes through the ownership, management and chartering of dry bulk carriers. The company is incorporated in Jersey and has its principal executive offices in Athens, Greece.
The company's current fleet includes five dry bulk carriers, comprised of one Capesize, two Panamax, one Handymax and one Handysize vessel. Global Oceanic Carriers has also entered into two agreements to acquire two Handymax vessels scheduled for delivery in August and October 2007, thereby expanding its fleet to a total of seven dry bulk carriers with an aggregate carrying capacity of 456,273 dwt.
GO Carriers was formed and listed on the AiM market in 2005 its stock code is GOC.L
Forward-Looking Statement
Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect the current views of Global Oceanic Carriers Limited ("the Company") with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.
The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, the Company cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.
Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charter hire rates and vessel values, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in the Company's operating expenses, including bunker prices, dry-docking and insurance costs, or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists. The Company does not assume, and expressly disclaims, any obligation to update these forward-looking statements.