Business
Conclusion of Sale
Conclusion of Sale.
About this update from James Fisher And Sons Plc
[{"type":"text","content":"\n Fisher (James) & Sons PLC\n25 June 2004\n\n\nFor Release 4.30pm 25 June 2004\n \n\n JAMES FISHER AND SONS PLC\n Long Term Bareboat Charters for 5,000 dwt Tankship Newbuildings\n\n\nJames Fisher and Sons plc ('Fisher'), the leading marine service provider,\nannounces that it has concluded the sale and ten-year bareboat charters for the\ntwo 5,000 dwt clean petroleum product carriers orders which were placed in April\nof this year. These vessels are under contract with Damen Shipyards Bergum and\nbeing constructed at the Damen Galati Shipyard in Romania with deliveries\nscheduled for late 2005 and mid 2006.\n\nThe transaction has been completed with First Ship Lease Ltd ('FSL'), a company\nspecialising in finance of shipping assets. FSL financed two other newbuildings\nfor Fisher, announced in February 2004. FSL have taken over the newbuilding\ncontracts and the vessels will be constructed under the supervision of James\nFisher (Shipping Services) Ltd. On delivery from the yard the ships will enter\n10-year bareboat charters with Fisher. FSL assumes full residual value risk at\nthe end of the charter period and, subject to certain terms and conditions,\nFisher has the option to extend the charter for a further 5 years.\n\nThe bareboat arrangements continue Fisher's fleet development without further\ncapital commitment. The new tonnage tax regime makes this attractive as the\nCompany no longer requires capital allowances from the purchase of vessels to\nminimise tax.\n\nFisher placed the newbuilding contracts in April 2004. To date, payments of Euro\n3.02 million have been made under the contracts for these vessels and were held\non James Fishers' balance sheet. These payments have been refunded as a result\nof the arrangements with FSL. The obligations under the shipbuilding contracts\nhave been assumed by FSL.\n\nThe vessels will join James Fisher Tankships' ('Tankships') 17 ship fleet of\ncoastal clean petroleum product carriers. Tankships is the market leader in this\ntrade, carrying in excess of six million tonnes of product under contract for\nthe major oil companies.\n\nNick Henry, Managing Director of James Fisher Tankships Limited, said:\n\n'We are committed to providing quality tonnage of the highest environmental\nstandards for our oil company customers. By the end of 2005 all our smaller\ntankers will be under te...