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Samudera Shipping completes disposal of Indonesian vessel

SAMUDERA Shipping Line Ltd has completed the disposal of its vessel Sinar Panjang, in accordance with the terms of the disposal mandate, the company said on Friday.

In October this year, Samudera announced that the consideration for the sale of Sinar Panjang was US$1.28 million.

On Friday, the company said that it has received the full purchase consideration for the sale of the vessel, where 10 per cent was paid to the group as downpayment following the signing of the memorandum of agreement, and the remaining 90 per cent was paid upon delivery of Sinar Panjang in the fourth quarter of 2017.

The proceeds from the disposal will be used for working capital and business expansion of the group.

The book value of the vessel is US$1.2 million. Accordingly, the disposal of the vessel results in the group recording a net loss of US$23,000, after taking into consideration costs to sell, Samudera said.

Assuming that the vessel had been disposed of on Dec 31, 2016, consolidated net tangible asset (NTA) per share post-disposal will be US$240.4 million.

Consolidated NTA per share will be 44.69 US cents and loss per share will be 0.88 US cent following the disposal.

In a circular it issued in April, Samudera said that Sinar Panjang and three other vessels were making losses in the financial year ended Dec 31, 2016.

On Friday, Samudera closed 0.5 Singapore cent lower at S$0.23.