World News
HMM Signs MoU for Sale of Ten Container Vessels
South Korean shipping giant Hyundai Merchant Marine Co., Ltd. (HMM) has entered into a Memorandum of Understanding (MoU) to sell ten of its container ships as part of an effort to raise funds, World Maritime reports.
Under the agreement, HMM will sell the vessels to Korea Shipping Co (KSC), the state-backed financier, for KRW 150 billion ($130 million).
The vessels are set to be leased back to HMM upon completion of the sale, with the difference in the ships' book value - about KRW 850 billion ($737.81 million) - compared to their sale price expected to be financed with bond and stock sales to the financing firm.
It is reported that, under the agreement, KSC will purchase about KRW 100 billion ($86.8 million) in stocks, as well as KRW 600 billion ($520.8 million) in bonds.
As Ship & Bunker reported last month, HMM says it will post losses through to the first half of 2018 as it works to improve its financial position, planning to order newbuild vessels once it achieves a turn around to profit.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 655.50 | 2.00 | 808.50 | 4.50 |
| Rotterdam | 619.00 | 0.00 | 789.00 | 8.00 |
| Houston | 628.50 | 7.50 | 812.50 | 1.50 |
| Fujairah | 653.50 | 4.50 | 900.00 | 2.50 |
| Global 20 Ports Average | 672.00 | 0.50 | 885.00 | 7.00 |
| Global 4 Ports Average | 639.00 | 2.50 | 827.50 | 2.00 |
| Global Average Bunker Price | 727.50 | 1.50 | 933.50 | 5.00 |
Popular Now More
-
Apr 16The firm will acquire majority ownership of the Spanish firm for an undisclosed sum, subject to closing conditions and regulatory approvals. -
Apr 15The Athens branch manager of global marine fuel supplier and trading firm Monjasa has stepped down from his role at the company. -
Apr 13A seizure of a ship by Iran would point to a significant widening of the threat to global shipping from current geopolitical tensions.