Rickmers – BT

Rickmers signs deal to buy 4 new vessels

This, together with a recent acquisition, will more than double its capacity

RICKMERS Maritime, which was floated on the Singapore Exchange (SGX) mainboard in May, has set sail to more than double its contracted fleet capacity. The business trust, which owns and operates containerships, said yesterday that it has signed a memorandum of understanding (MOU) to purchase four new 4,250 TEU (twenty-foot equivalent unit) vessels at US$69 million each.

This acquisition, together with a recently announced acquisition of four 13,100 TEU container vessels, will propel Rickmers to a contracted fleet capacity of 110,310 TEUs, up from 40,910 TEU.

The latest four vessels, to be acquired from Polaris Shipmanagement Company, are scheduled for delivery between February and December 2009 from the Jiangsu shipping facilities of Yangzijiang Shipbuilding (Holdings), also an SGX mainboard company.

Each vessel, to be paid on delivery, will commence service upon delivery with seven-year, fixed rate time charters to Hanjin Shipping in Seoul at US$25,950 per day.

Hanjin, Korea’s largest carrier that operates about 60 liner and tramper services transporting more than 100 million tonnes of cargo annually worldwide, also has the option to extend the charter period for another three years at a higher rate of US$27,950 per day.

Each of the new vessels is expected to contribute about US$9 million in revenue and US$7 million in Ebitda (earnings, before interest, tax, depreciation and amortisation) per annum in the initial years, which should add to distributable cash flow, said Quah Ban Huat, CFO of Rickmers’ trustee-manager.

Financing is being arranged, he said.

The four vessels are among the nine 4,250 TEU vessels that Rickmers said, during its IPO, that it would have the right of first offer to purchase.

‘With this acquisition in place, we will boast a more diversified network of liner companies that we collaborate closely with,’ said Thomas Preben Hansen, CEO of the trustee-manager.