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Gulfnavigation signs an agreement with stolt-nielsen to buy four chemical tankers

2010-03-18

Dubai, 18^th March 2010- Gulf Navigation Holding PJSC (DFM: GULFNAV) the leading ship owning and Maritime Services Company in the region has today announced that, together with its partner Stolt-Nielsen SA (SNSA) (Oslo Børs: SNI) an agreement to buy the four 44,000 deadweight ton modern chemical carriers has been reached. Two of the new build tankers are delivering prompt and two are being finalized at SLS Ship yard in South Korea. The Gulf Navigation Joint Venture with Stolt Tankers, "Gulf Stolt Tankers" in Dubai will own the four vessels and is scheduled to take delivery of the first 2 vessels immediately while the remaining two will be delivered in June and July  respectively. The four sophisticated tankers will be employed in the Stolt Tankers Joint Services and be technically managed by Gulf Stolt Ship Management in Dubai.  In line with the current new-building cost the vessels are purchased at substantially lower prices compared to the originally contracted price in 2005. These 4 quality vessels have an overall deadweight of 176,000 metric tonnes. They will have the capability of carrying a broad range of petrochemical products so as to meet the highest industry standards. The four ships will be financed by Deutsche Bank, Nordea and Danske Bank. Commenting on the significant milestone, Chairman of the Board of Gulf Navigation Holding PJSC, EGR. Abdullah Al Shuraim said “I am extremely glad and optimistic about this remarkable achievement with our partner Stolt-Nielsen to buy these four quality tankers at a significantly reduced price. Despite challenges and throughout the last  year, Gulf Navigation Holding has been in a buying mood, and the day has come to crown that and fulfil our commitment to our shareholders and reap the fruits of success accomplished by the management team. Undoubtedly the four tankers will secure positive turnover and robust revenues for the Company for 2010 and years to come.” Per Wistoft, the company’s Chief Executive Officer, said “We have been watching the markets very carefully and were determined to proactively get ourselves ready to avail the upturn that is inevitably coming. These vessels were purchased in order to position Gulf Navigation to instantly take advantage of that and strengthen its profit for the period of 2010 and beyond.”