Pan Ocean To Buy Two New Bulk Carriers For $147m

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The South Korean carrier Pan Ocean Co has expressed interest to buy two new ships, the company disclosed.

Resolution passed

The board passed a resolution on January 25 and it has entered a long-term contract to ship iron ore the day prior.

The board voted to invest 121.6 billion won (S$147 million), or 5.05 per cent of its share capital, towards a shipbuilding contract for two cape-size bulk carriers for long-term cargo contracts.

Changes to be incorporated

Singapore-listed Pan Ocean added in its bourse filing that the vessel delivery dates of between Sept 30, 2020, and April 29, 2021, might be changed, depending on shipbuilding process.

New contract initiated

A freshly inked five-year contract with miner Vale International will see Pan Ocean carry about 8.12 million tonnes of Brazilian iron ore from the second half of 2020. The main objective of the company for entering into this (contract) is a stabilized source of revenue and profit.

Pan Ocean recently reported a net profit of US$108.6 million for the nine months to Sept 30, 2018, up by 30.4 per cent on the year before, on revenue of US$1.85 billion in that period.

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Source: Straits Times

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