Odfjell has entered into an agreement to sell two Kvaerner-class vessels to Stolt-Nielsen. The vessels are Bow Century (built 2000) and Bow Favour (built 2001), which will be delivered to the buyer first quarter 2011. After this sale, 14 Kvaerner-class vessels remain in the Odfjell fleet. The transaction will yield Odfjell a capital gain of USD 26 million and a net liquidity gain of USD 46 million after repayment of debt associated with the vessels. The sales price is close to the construction price when the vessels were new 10 years ago and reflects Odfjell's extensive maintenance programme and continued high newbuilding prices for this type of sophisticated vessels.
Odfjell has recently completed a number of measures to increase capital and to secure liquidity. In addition to the above, Odfjell cancelled 3 of 6 newbuildings in China, secured a USD 225 million refinancing of five vessels and secured a USD 25 million long-term financing associated with the Flumar Brasil newbuilding delivered in 2010. The total net liquidity from these transactions amounts to USD 144 million.