Sale redrawn

John Fredriksen’s Ship Finance International has renegotiated a record sale of two suezmax newbuildings.

John Fredriksen.

North China Shipping will now take the pair on bareboat charter for five years with a purchase obligation at the end of the period, SFI’s third quarter report says.

SFI says it will now receive a $40.5m upfront payment for the first of the vessels, which was delivered in November, and will also bank $16,700 per day in bareboat hire.

North China, which was originally to pay $111m for the vessel, has annual purchase options on the ship and an obligation to buy at $40.7m after five years.

SFI says a similar deal is in place for the second suezmax, which will be delivered in the first quarter of 2010.

Ole Hjertaker, CEO of New York-listed SFI, said: “Two parties can always change an agreement. It is a very nice deal in which we get a substantial payment up front.”

He adds the revised contracts are more in line with the company’s strategy of owning and leasing ships rather than being an asset player.

When the original sale was announced in June 2008 SFI expected a profit of $34m per vessel from the deal.

It paid $75m per vessel for the newbuildings, which were originally scheduled for delivery in the first and third quarters of this year.

No revised profit projection was given, however analysts suggest SFI could take a hit of around $17m per ship against the original price tag.

With a new suezmax valued at around $66m today it still compares well with the present market.

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