GEM places first Aframax tankers order - Increases its $1.1bn asset value by 15%

The deal was granted to Samsung Heavy Industries Co. for building of two high specification double-hulled Aframax tankers - the first in GEM's growing fleet.

These Aframax tankers to be delivered before end of 2011 are to be named as Gulf Vision and Gulf Valour.

The two fully coated vessels with a capacity of 114,700 DWT each are of Long Range 2 (LR2) specification - capable of carrying both clean petroleum products and dirty products such as crude and fuel oil.

"This contract reflects GEM's continued expansion and its extensive servicing of regional and international customers, indicative of the company's current fiscal strength,"

said Ahmed Al Falahi, GEM's CEO.

"These tankers will be state-of-the-art and fitted with the latest equipment and meet all international environment safety requirements of being completely double-hulled."

Al Falahi said that the Geoje-based ship builder was selected following extensive consultations with a number of shipbuilders: "We had to ensure that we build at a yard with a long track record of building similar ships and on the right commercial terms.

"By 2012, many refineries in the Middle East will be up and running. The West is slowing down on building new refineries and GEM will be ideally placed by then to transport either dirty or clean petroleum products to the West. With these two Aframax orders, GEM has invested for the future."

These two vessels will join the existing GEM fleet which currently comprises of 11 modern panamax and chemical/product tankers and another eight which will be delivered before end of 2009. The 19 strong fleet order book was shared between Korea's Hyundai Heavy and Hyundai Mipo Dockyard.

GEM recently secured over $137m in revenues on its existing fleet.

The company's expanding international reputation of being a quality driven, independent commercial tanker company has managed to secure long-term time charters and is maintaining above average charter prices including on the spot market.

GEM is certified by Lloyd's Register Quality Assurance to the ISO-2000 Quality Management System and ISO 14001-2004 Environment Management System for the operational and technical management of its fleet.