TRANSATLANTIC: TRANSATLANTIC COMPLETES VESSEL TRANSACTION AND FURTHER IMPROVES FINANCES
As was reported earlier, Transatlantic has decided to lengthen the three Finn vessels to meet the increased capacity demands, primarily from the forest industry, on the North American shipping routes.
In connection with this, the M/S Finnpine and M/S Finnwood and the M/S Sandön, which was rebuilt in 2005, have been sold to external vessel owners. Concurrently, Transatlantic has reached an agreement with the new vessel owners to lease the vessels for a 10-year period through an operational lease arrangement. The transaction does not affect earnings; nor will the leasing costs affect Transatlantic's earnings during the lease period.
- "The transaction is part of Transatlantic's financial strategy and should also be regarded as an element of our long-term investment in tonnage and a strategy that emphasizes the careful balance between new and replacement and owned and leased tonnage," says Håkan Larsson, President of Transatlantic.
Due to the transaction, the Group's liquidity has increased by approximately SEK 170 M following repayments of existing vessel loans. The liquidity released will be used in the short term to further reduce the Group's debts, which will have a positive effect on the Group's financial key data.
In 2005, the Group has substantially reduced its interest-bearing debt and accordingly, it has improved its indebtedness and its equity/asset ratio, which is expected to amount to 42 percent at year-end 2005, compared with 26 percent at year-end 2004.
- "Through extensive changes, we have established both a new operational structure and a substantially improved financial position.
This provides us with an excellent platform upon which to conduct our growth strategy which, among other measures, involves investments in both vessels and supplementary operations," continued Håkan Larsson.
The year-end report will be presented on February 21, 2006.
For further information, please contact President Håkan Larsson, or
Executive Vice President, Hans Carlweitz, Telephone +46 (0)304 - 67 47 00
Due to the transaction, the Group's liquidity has increased by approximately SEK 170 M following repayments of existing vessel loans. The liquidity released will be used in the short term to further reduce the Group's debts, which will have a positive effect on the Group's financial key data.
In 2005, the Group has substantially reduced its interest-bearing debt and accordingly, it has improved its indebtedness and its equity/asset ratio, which is expected to amount to 42 percent at year-end 2005, compared with 26 percent at year-end 2004.
- "Through extensive changes, we have established both a new operational structure and a substantially improved financial position.
This provides us with an excellent platform upon which to conduct our growth strategy which, among other measures, involves investments in both vessels and supplementary operations," continued Håkan Larsson.
The year-end report will be presented on February 21, 2006.
For further information, please contact President Håkan Larsson, or
Executive Vice President, Hans Carlweitz, Telephone +46 (0)304 - 67 47 00