OOIL sells secondhand containership for $53.6m

The 2004-built containership OOCL Ningbo will be handed over to New York-listed GSL on 15 October 2015.

Under the memorandum of agreement, Orient Overseas Container Line (UK) Limited, subsidiary of OOIL, will time-charter the vessel from GSL for a minimum term of 36 months and a maximum period of 39 months.

OOIL does not have the option to repurchase the container vessel during or at the end of the charter period, OOIL announced to the Hong Kong Stock Exchange.

OOIL can expect to gain around $800,000 from the sale, after discounting the vessel's net book value and related expenses. The company pointed out that the sale proceeds will be used for general working capital and potential business expansion.

Earlier in September 2014 and February this year, OOIL also entered into similar agreements with GSL to sell two other 8,063 teu containerships – 2005-built OOCL Tianjin and 2004-built OOCL Qingdao – to GSL at a total price of $108.6m.