NEW YORK, Sept. 22 /PRNewswire/ -- General Maritime Corporation announced today that it has reached definitive agreements to enter into time charter contracts for six of its vessels with Trafigura, one of the world's leading international commodity traders that specializes in the oil, minerals and metals markets. Founded in 1993, Trafigura has 67 offices located in 44 countries throughout Europe, Africa, Asia, Australia, and North, Central and South America.
The six vessels under contract include the Genmar Hercules and the Genmar Atlas, both 2007-built VLCCs, the Genmar Argus and the Genmar Spyridon, both 2000-built Suezmax tankers, as well as the Genmar Defiance and the Genmar Daphne, both 2002-built Aframax tankers. Each of the six time charters, which are expected to commence on or around October 15, 2010, are for one year and come with a one-year optional period. These agreements represent approximately $60 million in contracted revenue for the Company during the first year and up to approximately $66 million in additional contracted revenue if each one-year option is exercised by the charterer (3).
John Tavlarios, President of General Maritime Corporation, commented, "We are pleased to significantly expand our time charter coverage by entering into these time charter contracts, with Trafigura, the third largest independent oil trader in the world with more than two million barrels of crude and oil products traded daily, and intend to build upon our initial relationship. These agreements are consistent with General Maritime's flexible deployment strategy that provides shareholders with sizeable fixed revenue streams while maintaining the ability to benefit from future rate increases. With this transaction we will have approximately 40% of our 2011 operating days booked on time charters totaling approximately $130 million in contracted revenue for 2011, assuming all the options are exercised. With a large portion of our modern double-hull fleet secured on time charters with high-quality counterparties, General Maritime remains well positioned to achieve stable financial results."
About General Maritime Corporation
General Maritime Corporation is a leading crude and products tanker company serving principally within the Atlantic basin, which includes ports in the Caribbean, South and Central America, the United States, West Africa, the Mediterranean, Europe and the North Sea. General Maritime also currently operates tankers in other regions including the Black Sea and Far East. General Maritime owns a fully double-hull fleet of 36 tankers - seven VLCC, twelve Aframax, eleven Suezmax tankers, two Panamax and four Product tankers - with a total carrying capacity of approximately 5.4 million dwt.
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and observations. Included among the factors that, in the Company's view, could cause actual results to differ materially from the forward looking statements contained in this press release are the following: loss or reduction in business from the Company's significant customers; the failure of the Company's significant customers to perform their obligations owed to us; changes in demand; a material decline in rates in the tanker market; changes in production of or demand for oil and petroleum products, generally or in particular regions; greater than anticipated levels of tanker newbuilding orders or lower than anticipated rates of tanker scrapping; changes in rules and regulations applicable to the tanker industry, including, without limitation, legislation adopted by international organizations such as the International Maritime Organization and the European Union or by individual countries; actions taken by regulatory authorities; actions by the courts, the U.S. Coast Guard, the U.S. Department of Justice or other governmental authorities and the results of the legal proceedings to which the Company or any of its vessels may be subject; changes in trading patterns significantly impacting overall tanker tonnage requirements; changes in the typical seasonal variations in tanker charter rates; changes in the cost of other modes of oil transportation; changes in oil transportation technology; increases in costs including without limitation: crew wages, insurance, provisions, repairs and maintenance; changes in general domestic and international political conditions; changes in the condition of the Company's vessels or applicable maintenance or regulatory standards (which may affect, among other things, the company's anticipated drydocking or maintenance and repair costs); changes in the itineraries of the Company's vessels; adverse changes in foreign currency exchange rates affecting the Company's expenses; the fulfillment of the closing conditions under, or the execution of customary additional documentation for, the Company's agreements to acquire vessels; sourcing, completion and funding of financing on acceptable terms; financial market conditions and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K for the year ended December 31, 2009 and its subsequent reports on Form 10-Q and Form 8-K.
(1) Includes optional periods for 2010 (2) Includes optional periods for 2011 (3) Revenue assumptions are gross of commissions
General Maritime Corporation
CONTACT: Jeffrey D. Pribor, Chief Financial Officer, General Maritime
Corporation, +1-212-763-5680
Web Site: http://www.generalmaritimecorp.com/
