Eitzen Maritime Services ASA (EMS) today announced that the Company has been awarded a USD 12 million order from the navy of an undisclosed European NATO country.
The order is for general supplies to the country’s naval fleet operating mainly in Mediterranean and Atlantic waters over the remaining of the year. The deliveries will be handled by EMS’ Spanish subsidiary.
General supply to military forces is currently EMS’ largest segment, alongside supplies to the world’s merchant fleet. Despite the contract being of a relative small size it has strategic importance. In addition, the new order will increase annual sales volumes in EMS’ Spanish subsidiary with approximately 20 per cent – and will be one important step for EMS’ European business to improve profitability.
EMS is currently tendering a handful of new military projects which could significantly improve profitability; however, there are no guarantees that EMS will be successful in obtaining such further awards. EMS will announce any further contract awards in accordance to the disclosure requirements in the security legislation.
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Source: Eitzen Maritime, March 22, 2012