Oslo (2014-01-28): Yara International ASA has entered into shipbuilding
contracts with Hyundai Mipo Dockyard (HMD) for the construction and delivery of
three 20,600 CBM semi-refrigerated LPG carriers with an expected cost per vessel
of USD 51 million.
Following an evaluation of current new-build and time charter rates, Yara has
chosen to build new vessels to replace existing time chartered vessels, covering
part of its long-term transport requirement at attractive rates, meeting
stricter environmental regulations and maintaining flexibility to serve Yara's
production system.
Yara currently has a fleet of 16-18 time chartered vessels serving its European
plants and long-term off-take agreements in Trinidad and Australia. The 3
vessels now on order will take advantage of latest design and engine
developments to optimize fuel consumption, and 2 of the vessels will have ice-
class capability. Scrubber or dual fuel engine options to meet SOX regulations
effective 1 January 2015 will be decided by the end of March.
Yara is in discussions with potential partners for combined ship management and
equity participation, however Yara aims to retain majority ownership in the
vessels.
Going forward, Yara will continue to evaluate vessel ownership versus time
charter on a case-by-case basis, relative to prevailing market conditions. Since
time-charter contracts require a parent company guarantee of hire payments, a
decision to build rather than charter vessels does not materially impact Yara's
debt capacity.
Contact
Thor Giæver, Investor Relations
Telephone (+47) 24 15 72 95
Cellular (+47) 48 07 53 56
E-mail thor.giaver@yara.com
Esben Tuman, Media Relations
Cellular (+47) 90 50 84 00
E-mail esben.tuman@yara.com
About Yara
Yara delivers solutions for sustainable agriculture and the environment. Our
fertilizers and crop nutrition programs help produce the food required for the
growing world population. Our industrial products and solutions reduce
emissions, improve air quality and support safe and efficient operations.
Founded in Norway in 1905, Yara has a worldwide presence with sales to 150
countries. Safety is always our top priority.
www.yara.com
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Yara International ASA via GlobeNewswire
[HUG#1757292]
