Release details

2012-09-19 08:52 CEST
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Eitzen Maritime Services ASA: Awarded USD 289 million military contract

Eitzen Maritime Services ASA (EMS) today announced that the Company has been awarded a USD 289 million Military supply order from a major NATO country. The customer is EMS largest customer and has been an important business partner to EMS Group since 1988.

The contract is for food supplies and distribution to the country's naval fleet and shore bases in the Middle East and Africa region over the next 5 years. The new contract replaces the bridge contract which the Company announced on 18 June 2012. The deliveries will be handled by EMS' UAE subsidiary, Seven Seas Shipchandlers LLC.

Delivery under the new contract will start up in Q1 2013.  The minimum contract award value is USD 43.2 million and for award budget purposes the maximum value is set at USD 1.30 billion.  Profitability under the contract is considered normal for the industry.

The award of this contract is an important milestone for the EMS Group and in particular for Seven Seas Shipchandlers and will improve operational visibility and predictability over the contract period. With this award, EMS Group holds a portifolio of long term military contracts providing an annual turnover of more than USD 100.

Eitzen Maritime Services is a global leader ship supply company with operations in 60 ports around the world. General supply to military forces is currently EMS' largest segment, alongside supplies to the world's merchant fleet.

For further information, please contact:

Morten Persen
Chief Executive Officer
Phone: +47 908 33 624

Ole Anton Gulsvik
Chief Financial Officer
Phone: +47 995 68 520

 

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)
HUG#1642017