ES Group Terminates Charter Contracts
Singapore-based ship builder ES Group said its unit ES Shipping has terminated a five-year demise charter contract for bunker vessel, Sea Tanker I, with Sea Hub Tankers.
"Under the five-year demise charter contract entered into on 23 November 2012, between the Company’s wholly-owned subsidiary, ES Shipping, and Sea Hub Tankers, ES Shipping had agreed to demise charter Sea Tanker I to Sea Hub Tankers for a monthly charter fee, with the bunker vessel ownership to be transferred to Sea Hub Tankers upon payment of full consideration at the end of the Demise Charter Contract," said a statement from the company.
The board of directors of ES Group (Holdings) Limited updated that Sea Hub Tankers has defaulted on the Demise Charter Contract and the Demise Charter Contract has been terminated with effect from 11 September 2017 with full reservation of ES Shipping’s rights to claim any damages from Sea Hub Tankers.
With the termination of the Demise Charter Contract, the ownership of Sea Tanker I will no longer be transferred to Sea Hub Tankers and will be retained by ES Shipping. Barring unforeseen circumstances, the termination of the Demise Charter Contract is expected to have a material impact on the net tangible assets per share and the net earnings per share of the Group for the current financial year ending 31 December 2017.
