Navios Maritime to buy five MR2 product tankers

3 April 2013 (Last Updated April 3rd, 2013 18:30)

Navios Maritime Acquisition has agreed to purchase five MR2 product tankers for $143.8m with an option for two additional MR2 eco-type product tankers.

Navios Maritime Acquisition has agreed to purchase five MR2 product tankers for $143.8m with an option for two additional MR2 eco-type product tankers.

Out of the five MR2 product tankers, two 51,000dwt vessels were built in 2007 and were acquired at a purchase price of $23.2m each; the vessels are scheduled to be delivered in June 2013.

Navious paid $34.3m for one 50,000dwt MR2 Eco Type product tanker, which is currently under construction and is scheduled to be delivered in the third quarter of 2013.

The two remaining vessels on the order are 51,200dwt newbuilding MR2 Eco Type product tankers, which cost $31.5m and are expected to be delivered in the third and fourth quarters of 2014.

Around 60% of the purchase cost will be financed by bank debt consistent with Navios’s existing credit facilities, while the remaining cost will be covered by cash on the company’s balance sheet.

Navios chairman and CEO Angeliki Frangou said the company has used the net proceeds of a recent equity issue for the purchase of the vessels.

"We anticipate chartering these vessels out shortly and will update investors once we secure charters that we find attractive in the current market," Frangou said.

Upon the purchase and delivery of the vessels, the company has contracted 86.1% and 50.4% of its available days on a charter-out basis for 2013 and 2014, respectively.

In March 2013, the company took a delivery of a 49,999dwt MR2 product tanker vessel from a South Korean shipbuilder.

Navios Acquisition owns and operates a fleet of tanker vessels for the transportation of petroleum products and bulk liquid chemicals.