SOURCE: TBS International plc
DUBLIN, IRELAND–(Marketwire – September 2, 2010) – TBS International plc (
The M/V Montauk Maiden is the third in a series of six “Roymar Class” 34,000 dwt multipurpose tweendecker vessels that the Company has ordered with China Communications Construction Company Ltd./ Nantong Yahua Shipbuilding Group Co., Ltd. for a purchase price of $35.4 million per vessel. This vessel, like its sister ships, has box-shaped holds, open hatches and fully retractable hydraulic tweendecks, is geared with 35 and 40 ton cranes combinable up to 80 tons, and has a modern fuel-efficient engine enabling the vessel to operate effectively at 15 knots.
Of the remaining three vessels, the Company expects to take delivery of one vessel at the end of 2010 and two in 2011 and TBS has in place the requisite bank financing for these.
With the delivery of this vessel, TBS’ current fleet expands to 49 vessels with an aggregate of 1.48 million dwt, consisting of 27 tweendeckers and 22 handymax/ handysize bulk carriers.
Joseph E. Royce, Chairman, Chief Executive Officer and President, commented: “We are pleased to have taken delivery of our third newbuilding Roymar Class Tweendecker, the M/V Montauk Maiden, expanding our operational fleet to a total of 49 vessels. The addition of this vessel to our fleet enhances our operational efficiency and versatility.”
Forward-Looking Statements “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations and observations.
Included among the factors that, in the company’s view, could cause actual results to differ materially from the forward-looking statements contained in this press release are the following:
- changes in demand for the company’s services, which are increasingly difficult to predict due to economic conditions and uncertainty;
- the effect of a decline in vessel valuations;
- the company’s ability to maintain financial ratios and satisfy financial covenants required by its credit facilities, as amended;
- the company’s ability to finance its operations and raise additional capital on commercially reasonable terms or at all;
- changes in rules and regulations applicable to the shipping industry, including legislation adopted by international organizations such as the International Maritime Organization and the European Union or by individual countries;
- actions taken by regulatory authorities;
- changes in trading patterns, which may significantly affect overall vessel tonnage requirements;
- changes in the typical seasonal variations in charter rates;
- volatility in costs, including changes in production of or demand for oil and petroleum products, crew wages, insurance, provisions, repairs and maintenance, generally or in particular regions;
- default by financial counterparties;
- a material decline or weakness in shipping rates, which may occur if the economic recovery is not sustainable;
- changes in general domestic and international political conditions;
- changes in the condition of the company’s vessels or applicable maintenance or regulatory standards which may affect, among other things, the Company’s anticipated drydocking or maintenance and repair costs;
- increases in the cost of the company’s drydocking program or delays in its anticipated drydocking schedule;
- China Communications Construction Company Ltd./Nantong Yahua Shipbuilding Group Co., Ltd.’s ability to complete and deliver the remaining multipurpose tweendeckers on the anticipated schedule and the ability of the parties to satisfy the conditions in the shipbuilding agreements;
- the possible effects of pending and future legislation in the United States that may limit or eliminate potential U.S. tax benefits resulting from the Company’s jurisdiction of incorporation;
- Irish corporate governance and regulatory requirements which could prove different or more challenging than currently expected; and
- other factors that are described in the “Risk Factors” sections of reports filed with the Securities and Exchange Commission.
About TBS International plc
TBS is a fully-integrated transportation service company that provides worldwide shipping solutions to a diverse client base of industrial shippers. Through the TBS Five Star Service consisting of ocean transportation, operations, logistics, port services, and strategic planning, TBS offers total project coordination and door-to-door supply chain management. The TBS shipping network operates liner, parcel and dry bulk services, supported by a fleet of multipurpose tweendeckers and handysize and handymax bulk carriers, including specialized heavy-lift vessels and newbuild tonnage. TBS has developed its business around key trade routes between Latin America and China, Japan and South Korea, as well as select ports in North America, Africa, the Caribbean and the Middle East.
Visit our website at www.tbsship.com
For more information, please contact:
Ferdinand V. Lepere
Senior Executive Vice President and Chief Financial Officer
TBS International plc
Investor Relations / Media:
Capital Link, Inc. New York
E-mail: [email protected]