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Gulf Navigation in the market for new vessels following SLS refund

Seoul: Gulf Navigation Holding is expected to use the $70m plus payout from SLS Shipbuilding for new vessel purchases at current market rates. The payout is a refund, including interest, for two tanker newbuilds that the South Korean yard was unable to deliver on time as per the contractual agreement.

This week Gulf Navigation took receipt of the last payment, said to be in excess of $35m, for cancellation of a 44,000 dwt product/chemical tanker. The company is expected to use the funds for vessel purchases in the near future, as the vessels

"Now having received its full payment with interest for both vessels, the company is in a strong position to execute new purchases at current market rates significantly lower than before," it said. "The refund of the interest-bearing instalments will have a positive effect on the company's result, and increase its cash reserves to help with future acquisitions."  [22//10]

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