Eimskip Reduces Purchase Price of Newbuild Vessels

In 2011 Eimskip and the shipyard Rongcheng Shenfei in China made an agreement of building two container vessels. Each vessel’s size is 875 TEU, thereof each containing plugs for 230 reefer containers. Deadweight of each vessel is approximately 12 thousand tons. The vessels are 140.7 meters long and 23.2 meters wide.

Originally the vessels were expected to be delivered in 2013. An amendment agreement with the shipyard expects delivery of the vessels in the first half of 2014. Besides negotiating the delay, Eimskip has negotiated a reduction of the vessels’ purchase price by about 20% which equals a reduction of USD 10 million in total.

Eimskip has already paid USD 26 million which equals about 70% of the altered purchase price of the vessels. The investment is financed with equity and with a bridge loan for the building period from an Icelandic bank and with long term financing from a foreign bank.

In March 2013 Eimskip introduced material changes in its sailing schedule. The delay of the vessels’ delivery time will neither affect these changes nor service to the company’s customers. The delay will however extend chartering of vessels longer than earlier expected.

Gylfi Sigfússon, CEO:

“It is pleasant to have achieved a reduction of the vessels’ purchase price, in connection with a delay in their delivery, by USD 10 million. It will be delightful to receive the new vessels on Eimskip’s 100 years anniversary in 2014. The delay will not affect the company’s new sailing schedule or services to our customers. It is also good to experience the trust which Eimskip has earned among international finance organizations in relation to the financing of the project, whereas the company has ensured long-term financing of the new building.”