d’Amico International Shipping S.A. (Borsa Italiana: DIS) (DIS), an international marine transportation company operating in the product tanker market, announces that DM Shipping d.a.c.(DMS), a joint venture company with the Mitsubishi Group, in which d’Amico Tankers d.a.c. (Ireland) (d’Amico Tankers) holds a 51% participation, signed a memorandum of agreement for the sale of the MT High Strength, a 46,800 dwt MR product tanker vessel, built in 2009 by Nakai Zosen Corporation, Japan for a consideration of US$ 16.4 million. The Vessel will continue its current time-charter out contract with d’Amico Tankers d.a.c. until October 2019.

Caption: Oil Products Tanker High Strength - Image courtesy of Buggi Porschien

This transaction allows DM Shipping to generate around US$ 12.3 million in cash, net of commissions and reimbursement of the Vessel’s existing loan. As of today, DIS’ fleet comprises 49.5 double-hulled product tankers (MR, Handysize and LR1) with an average age of about 7 years (of which 24 owned, 17.5 chartered-in and 8 bareboat chartered. DIS has also 4 vessels in commercial management). Currently, d’Amico Tankers has also shipbuilding contracts with Hyundai Mipo Dockyard Co. Ltd., for the construction of 1 LR1 (Long Range) product tanker expected to be delivered in 2019.

Paolo d’Amico, Chairman and Chief Executive Officer of d’Amico International Shipping, stated: “I am satisfied to announce the conclusion of this deal, which will generate a very positive net cash effect, of approximately US$ 12.3 million, for DM Shipping, our 51/49 joint venture company with the Mistubishi Group. We saw strong interest from potential buyers for the Vessel and were able to sign the memorandum of agreement within a relatively short period of time. The increasing appetite from buyers and period charterers over the last few months, is evidence of the strong medium-term fundamentals of the sector, and of the imminent anticipated market recovery. In addition, this transaction will allow us to sell a 2009-built vessel and is therefore in line with our long-term objective of maintaining a very young and modern fleet.”

Source: d’Amico