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TTA is rationalising its dry bulk business by scrapping M.V. "Thor Mariner" for over Baht 67 million.

Back Sep 07, 2009

TTA is rationalising its dry bulk business by scrapping M.V. "Thor Mariner" for over Baht 67 million

Thoresen Thai Agencies Plc. ("TTA") reported the sale of M.V. Thor Mariner for scrap on behalf of Thor Mariner Shipping Co., Ltd., a wholly owned subsidiary company of TTA for over baht 67 million to Blueseas Inc., Liberia. M.V. Thor Mariner is a general cargo vessel with a rated capacity of 17,298 DWT and was built in 1983. The proceeds from the sale will be applied towards the new build vessel program or younger second-hand vessel acquisitions

M.L. Chandchutha Chandratat, Group Managing Director and Chief Executive Officer of Thoresen Thai Agencies Plc. ("TTA") disclosed that "Thor Mariner Shipping Co., Ltd., a wholly owned subsidiary company of TTA, sold M.V. Thor Mariner to Blueseas Inc., Liberia for scrap at a price of USD 1,994,406.70 or Baht 67,595,628.52"

"The sale is in line with prevailing dry bulk shipping conditions, in which older
vessels become less competitive and less able to meet the minimum operating costs requirement. The Board of Directors of Thor Mariner Shipping Co., Ltd. unanimously resolved to sell M.V. Thor Mariner which has been used for over 26 years, in order to maintain a younger fleet which in turn will strengthen the shipping business competency. In addition, the proceeds from the sale will be used for current newbuilds program or potentially acquisition of good value second-hand vessels." M.L. Chandchutha added

The size of the transaction equals 0.17% of the total assets of TTA and its subsidiaries as of 30 June 2009 (the total assets of TTA and its subsidiaries as of 30 June 2009 amounted to Baht 40,472,515,772). Therefore, after the sale for scrap of M.V. Thor Mariner, the Thoresen fleet will consist of 37 vessels with an average size of 26,826 DWT and an average age of 19.10 years.

TTA is a leader in the dry bulk shipping industry, providing liner and charter services, and is a major player in Southeast Asian offshore services through Mermaid.  TTA is amongst the top 50 companies listed on the Stock Exchange of Thailand with high liquidity.