FAIRSTAR HEAVY TRANSPORT N.V. Wins New Contracts for FJORD and FJELL in 2011

Fairstar Heavy Transport N.V. (FAIR) has signed two marine heavy transportation contracts with GAC in Aberdeen Scotland. Fairstar's semi-submersible vessels FJORD and FJELL will transport a flotilla of 42 tug boats from Singapore to Maracaibo, Venezuela in April and May of 2011. Both vessels are now mobilizing to Singapore. Chris Muilwijk of the Fairstar Client Services Group provided some additional details. "The safe, secure loading and transport of these tug boats from Singapore, around The Cape of Good Hope to Venezuela requires precise planning and seamless operational execution. We are delighted to have been chosen by GAC and take their trust in our company very seriously. The combined skills of our Operations Team with our experienced Team on board FJORD and FJELL will be a significant factor in performing the complex maneuvers required to safely load and unload such a multitude of floating objects. This is an unusual assignment for our Team, but we are determined to exceed the expectations of our client for safety and reliability." stated Muilwijk.

Ingmar den Blanken, Fairstar's Treasurer and Financial Controller, highlighted the financial contribution of these two contracts for Fairstar in 2011. "Fairstar is now projecting minimum operating revenues of USD 40 million for our 2011 Financial Year as a result of these new contracts. We expect to formalize the recently announced LOI for the transport of fertilizer plant modules from Kenai, Alaska to Koko, Nigeria in the next ten days. This USD 25.5 million contract as well as the previously signed transportation contract with DSME, relating to the CLOV FPSO project in Q4 of approximately USD 4.7 million, combined with 2011 Q1 revenues of USD 1 million will exceed USD 40 million for the year. There are still some gaps in our schedule for the rest of 2011 which may allow further improvement. We are projecting USD 40 million operating revenues as our minimum guidance for 2011.”

Fairstar's Chief Executive Officer Philip Adkins summarized the importance of the two new contracts by stating "The doldrums of the current spot market for marine heavy transport continue to be characterized by a shortage of cargoes, excess capacity, and savage discounting by our competitors. Our financial performance and low vessel utilization rates in Q4 of 2010 and Q1 of 2011 reflected this dangerous and unsustainable situation. These new contracts with GAC have an immediate impact on our vessel utilization and cash flow. It is a relief to see the remaining three quarters of 2011 are now filling in and we are less than a year away from starting our work on the USD 90 million, multi-voyage, multi-vessel Gorgon LNG Project."
Source: Fairstar