d’Amico Exercises Option for Two Additional LR1 Tankers

Italian ship owner d’Amico has through its Ireland-based subsidiary d’Amico Tankers Limited placed an order for construction of two new Long Range (LR1 – 75,000 DWT) product tankers with Korean Hyundai Mipo Dockyard Co. Ltd.

The ships have been ordered under an option stipulated in the recent contract that saw d’ Amico order two similar LR1s on April 27th 2015.

The vessels will be built by Vietnam-based Hyundai Vinashin Shipyard Co. Ltd and are expected to be delivered in the second half of 2017 and the first quarter of 2018 respectively, for a total consideration of about USD 44 million each.

The above two double‐hull newbuildings are the latest ECO design vessels featuring attained Energy Design Index (EEDI), falling already well within the IMO phase-in 2 requirements due for vessels to be built before December 31st 2024, being of 25% lower than the current IMO reference line.

DIS fleet includes 52.8 double-hull product tankers (MR and Handysize) with an average age of about 7.5 years.

d’Amico Tankers Limited has currently a total of 12 new ‘Eco design’ product tanker shipbuilding contracts, which include 4 LR1, 4 MR and 4 Handysize vessels, all under construction at Hyundai Vinashin and expected to be delivered between 2015 and Q1 2018.

“This investment is fully in line with DIS’ strategy to modernize its fleet through newbuildings with eco innovative design and will also strengthen our presence in what I see as a very promising segment (LR1 – 75,000 dwt) within the product tanker market.

In fact, the trend of our industry is pointing towards an expansion of the tonne/mile demand, following the concentration of the world refining capacity in the US and in the Middle and Far East. In this context, I believe LR1s, with their larger cargo capacity, will be in great demand in the years to come, thanks to their ability to carry larger quantities on the same distances,” commented Marco Fiori, Chief Executive Officer of d’Amico International Shipping.