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The National Shipping Company of Saudi Arabia (Bahri) announces that its 80% owned subsidiary company National Chemical Carriers Ltd. Co. decided today Monday, 11/2/1434H, corresponding to 24/12/2012G to cancel a shipbuilding contract for one chemical tanker (NCC Bader) due to the delay in delivery beyond the agreed date in the shipbuilding contract.
According to the contract signed with ShinaSB Yard Co. Ltd. in 2007 and subsequent supplementary agreements signed during 2012, National Chemical Carriers is entitled to cancel the shipbuilding contract if the delay exceeds the period specified in the contract which also reserves the rights for the company to get refunded of total pre-delivery installments paid amounting to (USD 41.6 million). The paid installments are guaranteed by The Export-Import Bank of Korea, including related compensation expected to reach (US$ 7 Million).
It is worth mentioning that National Chemical Carriers signed with ShinaSB Yard Co. Ltd. during 2006 and 2007 contracts to build (16) chemical tankers, in which ten vessels were received by the company during the period from March 2011 to December 2012, while eight contracts have been cancelled (including two that were re-purchased at new agreed price and received by the Company). As a result of these cancellations, National Chemical Carriers has achieved nearly (USD 97 million) in financial discounts and compensations.
The Company still has a building contract for large chemical tanker (NCC Fajr) under construction at Daewoo Shipbuilding & Marine Engineering Co. expected to be delivered at the end of 2013.
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