Norway's Stolt gets $84.5 mil refund for canceled tanker orders

Stolt Tankers, a subsidiary of Norway's Stolt-Nielsen, has received a refund of $84.5 million plus accrued interest from South Korea's SLS Shipbuilding over the collapse of contracts to build two 43,000 dwt stainless steel parcel tankers, the Oslo-listed shipping company said in a statement late Tuesday. The refund was for the progress payments made by the Norwegian company on the two ships, which were ordered in 2006 as part of a series of eight parcel tankers to be built by SLS. Coated parcel tankers are used to move clean middle distillate products as well as chemicals. "Due to extensive delays at the yard it was unlikely that these ships would have been delivered within the terms of the shipbuilding contracts," the statement said, adding that a total of $296 million was made in progress payments to SLS for the eight newbuildings. "All of the eight ships ordered by Stolt Tankers from SLS are covered by refund guarantees and the company similarly expects to receive full refunds for the six remaining ships in the series." The company said the refund will be used to repay loans taken to fund newbuildings and for general corporate purposes.