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LORENZO Shipping Corp. on Wednesday said its board
approved the sale of an old vessel to Coral Bay Maritime Inc. Nevis.
In a disclosure to the Philippine
Stock Exchange, Lorenzo Shipping said the board authorized the
company to enter into a memorandum of agreement with Coral Bay for
the sale of M/V Lorcon Mindanao, a 36-year-old vessel that has a
capacity of 400 twenty-foot-equivalent units (TEUs).
The shipping company said the
agreement provides that the buyer deposit ten percent of the
purchase price into an escrow account within three banking days from
the date the agreement is signed.
Lorenzo Shipping must also
open and maintain an escrow account with Banco de Oro-EPCI, Inc.
Trust Banking.
“With the sale of Lorcon
Mindanao, [the company] has a fleet of seven vessels with a total
capacity of 2317 TEUs,” Lorenzo Shipping said.
The shipping company said
the routes serviced by Lorcon Mindnao will be served by Lorcon
Cagayan de Oro,
In the first nine months of
last year, Lorenzo Shipping posted a net income of P22.1 million,
19.3 percent lower than the P27.4 million earned in the same period
in 2006.
The company’s revenues
also dipped 8 percent to P929 million from the previous year’s
P1.017 billion due to a lower number of trips.
The company’s freight revenue
during the quarter dropped 2 percent.
The shipping firm, which is
engaged in domestic inter-island cargo liner services, earlier
received tax perks and other incentives from the Board of Investment
for its cargo vessel project.
--Darwin G. Amojelar
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