Odfjell intends to cancel its four 17,000 m3 gas carriers ordered at Chinese Nantong Sinopacific shipyard due to delays.
The company has eight vessels on order at Nantong, four 22,000 m3 gas carriers, of which the first now has a planned delivery of April 2017 instead of the contractual delivery in September 2016, and four 17,000 m3 gas carriers. These last four are now likely to be cancelled due to the delays, the first in May and the others about every three months thereafter.
Reduced Commitments to Odfjell Gas
Odfjell has stated all instalments paid on the newbuildings are secured by refund guarantees. So far, the company expects an impairment of USD 2.75 million related to the newbuilding programme. When the carriers are indeed cancelled, Odfjell will evaluate its strategic options for its remaining investments in gas and expects its future capital commitments to Odfjell Gas to be reduced.
