STX awarded LR2 tankers contract from Teekay Tankers
Teekay Tankers Ltd. (Teekay Tankers, the Company) announced on April 8, 2013 that it has entered into an agreement with STX Offshore & Shipbuilding Co., Ltd., (STX) of South Korea for the construction of four, fuel-efficient 113,000 dead-weight tonne (dwt) Long Range 2 (LR2) product tanker newbuildings for a fully built-up cost of approximately $47 million each, the Company press release said.
The agreement with STX also includes fixed-price options for up to 12 additional LR2 newbuildings that can be declared over the next 18 months. Upon delivery, it is expected that the vessels will operate in Teekay Corporation's Taurus Tankers LR2 Pool (the Taurus LR2 Pool), which is one of the world's largest LR2 pools with approximately 20 LR2 product tankers.
The agreement with STX includes a favorable installment payment schedule, with the majority of the purchase price due upon delivery. The Company intends to finance the installment payments with its existing liquidity, which was approximately $327 million as of December 31, 2012. The Company expects to secure long-term debt financing for the four vessels prior to their scheduled deliveries in late-2015 and early-2016.
About Teekay Tankers
Teekay Tankers currently owns a fleet of 27 double-hull vessels, including 11 Aframax tankers, 10 Suezmax tankers, three Long Range 2 (LR2) product tankers, three Medium-Range (MR) product tankers, and has time-chartered in two Aframax tankers. Teekay Corporation (NYSE:TK) manages these vessels through a mix of short- or medium-term fixed-rate time-charter contracts and spot tanker market trading. The Company also owns a VLCC newbuilding through a 50 percent joint venture, which is scheduled to deliver in the second quarter of 2013. Teekay Tankers was formed in December 2007 by Teekay Corporation as part of its strategy to expand its conventional oil tanker business.
