Shipping firm buying new container ship.
Listed shipping company Lorenzo Shipping Corp. is set to acquire a new cellular container ship. In a disclosure to the Philippine Stock Exchange, Lorenzo Shipping said its board had approved the purchase of the ship from Oak 1 Shipping, Inc., which is based in the Marshall Islands.
?The corporation has also executed a memorandum of agreement with the seller for the acquisition of the vessel,? Lorenzo Shipping"s disclosure said.
Dino C. Diaz, vice-president for logistics and corporate planning of Lorenzo Shipping, told BusinessWorld in a text message the company ?cannot disclose the price [of acquisition of the vessel] due to a confidentiality clause in the memorandum of agreement with the sellers.?
The vessel has a capacity of 790 twenty-foot equivalent units. Lorenzo Shipping said the vessel would be delivered between March 19 and April 2 this year.
?The corporation [will] use internally generated finds and avail [itself] of [a] credit facility with a local bank to finance the acquisition of the vessel,? the company said.
For the nine-month period ending September 2009, Lorenzo Shipping reported a net income of P33.2 million, a 17.6% drop from P40.3 million in the same period in 2008. Total net revenue from January to September 2009 stood at P1.1 billion, a decrease from P1.15 billion posted in 2008.
Lorenzo Shipping engages in mostly domestic inter-island cargo shipping activities. It has been majority owned by the National Marine Corp. since 2006.
The company owns and operates seven vessels deployed around the country and has six branches and agencies in Cebu, Davao, General Santos, Cotabato, Iloilo, Cagayan, Zamboanga, Dumaguete and Bacolod.
Shares in Lorenzo Shipping were last traded on Feb. 25 at P1.06 apiece.