Wellard Limited (ASX: WLD) announced that its wholly-owned subsidiary, Wellard Ships Pte Ltd has reached an agreement to further defer the delivery date for the M/V Ocean Kelpie, currently being built by Uljanik d.d. (Uljanik) shipyards in Croatia.
M/V Ocean Kelpie - Image courtesy: Wellard
The delivery is now expected to take place within Q3 FY19. This will accommodate Uljanik’s production programme and allow Wellard to continue to adjust its fleet capacity to ongoing changes in the cattle supply market in Australia.
The substantive terms of the shipbuilding contract remain the same. There is no penalty payment and liquidated damages remain in place in case of late delivery based on the new delivery date. All stage payments will be postponed by the same time, enabling Wellard to utilise its cash in other areas of the business.
M/V Ocean Kelpie - Image courtesy: Wellard
Source: Wellard Limited