Fisher (James) & Sons PLC
25 June 2004
For Release 4.30pm 25 June 2004
JAMES FISHER AND SONS PLC
Long Term Bareboat Charters for 5,000 dwt Tankship Newbuildings
James Fisher and Sons plc ('Fisher'), the leading marine service provider,
announces that it has concluded the sale and ten-year bareboat charters for the
two 5,000 dwt clean petroleum product carriers orders which were placed in April
of this year. These vessels are under contract with Damen Shipyards Bergum and
being constructed at the Damen Galati Shipyard in Romania with deliveries
scheduled for late 2005 and mid 2006.
The transaction has been completed with First Ship Lease Ltd ('FSL'), a company
specialising in finance of shipping assets. FSL financed two other newbuildings
for Fisher, announced in February 2004. FSL have taken over the newbuilding
contracts and the vessels will be constructed under the supervision of James
Fisher (Shipping Services) Ltd. On delivery from the yard the ships will enter
10-year bareboat charters with Fisher. FSL assumes full residual value risk at
the end of the charter period and, subject to certain terms and conditions,
Fisher has the option to extend the charter for a further 5 years.
The bareboat arrangements continue Fisher's fleet development without further
capital commitment. The new tonnage tax regime makes this attractive as the
Company no longer requires capital allowances from the purchase of vessels to
minimise tax.
Fisher placed the newbuilding contracts in April 2004. To date, payments of Euro
3.02 million have been made under the contracts for these vessels and were held
on James Fishers' balance sheet. These payments have been refunded as a result
of the arrangements with FSL. The obligations under the shipbuilding contracts
have been assumed by FSL.
The vessels will join James Fisher Tankships' ('Tankships') 17 ship fleet of
coastal clean petroleum product carriers. Tankships is the market leader in this
trade, carrying in excess of six million tonnes of product under contract for
the major oil companies.
Nick Henry, Managing Director of James Fisher Tankships Limited, said:
'We are committed to providing quality tonnage of the highest environmental
standards for our oil company customers. By the end of 2005 all our smaller
tankers will be under ten years old.'
Tim Harris, Chairman of James Fisher, said:
'This agreement preserves James Fisher's equity capital and maintains
operational control of our vessels by way of 100 per cent financing. Fleet
modernisation, using bareboat charters, is part of our declared strategy for
tankers. The Tankship Fleet is a key part of our marine services business.'
EC Hambro Rabben & Partners is acting as corporate finance advisor to Fisher.
For further information contact
Tim Harris James Fisher and Sons 0207 338 5808
Nick Henry James Fisher Tankships Ltd 0207 338 5808
Eivind Rabben EC Hambro Rabben & Partners 0207 355 4100
Peter Binns Binns & Co PR Ltd 0207 153 1478
Paul McManus Binns & Co PR Ltd 07980 541 893
This information is provided by RNS
The company news service from the London Stock Exchange