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Neste Oil Corp to Exit Shipping Business; Plans to Sell Wholly- and Jointly-Owned Vessels and Outsource Ship Management Functions


Thursday, 19 Sep 2013 07:00am EDT 

Neste Oil Corp announced that the Company is planning to exit its shipping business. According to the plan, the Company would sell all its own vessels and outsource the ship management functions covering them, with around 320 ship management personnel transferring to a new employer. Neste Shipping's chartering functions would be retained and integrated with Neste Oil's organization. Going forward, Neste Oil intends sourcing its marine transportation through contractual arrangements. Service levels will be unaffected and national security of supply guaranteed. As part of the restructuring of its shipping business, Neste Oil intends selling five tankers (Mastera, Futura, Neste, Kiisla, and Suula) and three tugs (Ukko, Ahti, and Esko) to companies owned by Finland's National Emergency Supply Agency and the Ilmarinen Mutual Pension Insurance Company. These will be sold at the current market value. Neste Oil will lease the vessels back under long-term contracts and they will continue to sail under the Finnish flag. In addition, Neste Oil plans to sell three of its other tankers - Tempera, Purha, and Jurmo - at a later stage, together with its 50% ownership of another three tankers - Stena Poseidon, Palva, and Stena Arctica - which are owned together with the Stena Group of Sweden. 

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14.8
-0.08 -0.54%
4:23am EDT