Korean Shipbuilder Confirms Cancelled Order

17 March 2010 (Last Updated March 17th, 2010 18:30)

Hyundai Heavy Industries has confirmed the cancellation of orders for five oil tankers worth $425m. The news follows what the industry is assuming is belated acknowledgement of a Greek owner’s move to axe part of a lengthy Suezmax building programme with the yard, reports asiasis.com.

Hyundai Heavy Industries has confirmed the cancellation of orders for five oil tankers worth $425m.

The news follows what the industry is assuming is belated acknowledgement of a Greek owner’s move to axe part of a lengthy Suezmax building programme with the yard, reports asiasis.com.

The South Korean giant’s statement follows Alma Maritime’s initial public offering filing with US regulators, which became effective Friday 12 March.

In its filings, Alma, without naming the South Korean builder, said five of nine 158,000dwt tankers ordered in 2008 had been cancelled the following year.

HHI has agreed to retain $35m out of $92.2m prepaid instalments as cancellation fees and to apply $57.2m, or $14.3m a ship, towards pre-payment of the next scheduled instalment, Alma’s IPO prospectus said.

Alma has accepted a price hike of $2.5m, or $625,000 a ship, on the four existing newbuilds, making a “total consideration” of $37.5m, according to asiasis.com.