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2009-10-15 15:45:28 CEST 2009-10-15 15:46:39 CEST REGULATED INFORMATION Aspo - Company AnnouncementASPO'S ESL SHIPPING CANCELS SHIP ORDERASPO Plc STOCK EXCHANGE BULLETIN October 15, 2009 at 4:45 p.m. ESL Shipping Ltd, part of Aspo Group, has decided to terminate one of the two shipbuilding contracts it has signed with an India-based shipyard. The first ship has been delayed and is estimated to be completed in spring 2010. The vessel has been leased to ESL Shipping under a leasing contract. The second vessel has been substantially delayed and as a result of this delay ESL Shipping has decided to enforce its right of termination pursuant to the shipbuilding contract. Cancelling the ship will have an impact on the dissolution of currency hedging of future payment installments, and capital asset items recorded in the company's balance sheet. As a result of these measures, the company will record exchange rate losses. For the return of advance payments, ESL Shipping will receive a positive cash flow of about EUR 9 million and interest income. ESL Shipping estimates that the compensation for the delay of the first ship and the termination of the second ship order will not have a significant total impact on the company's result. The impacts are expected to be realized at the end of 2009 and at the beginning of 2010."The ships were ordered in 2006 and after that the new building market has changed considerably. Now is the right time to consider the alternatives and to reinforce the cargo capacity and competitiveness of the fleet of ESL Shipping," says Aki Ojanen, CEO of Aspo Plc. ESL Shipping is a dry bulk shipping company operating in the Baltic Sea area. Its main clients include the energy, steel and chemical industries. The ESL Shipping fleet includes a total of 16 units. ASPO Plc Aki Ojanen CEO For more information, please contact: CEO Aki Ojanen, Aspo Plc, +358 9 521 4010, +358 400 106 592 aki.ojanen@aspo.fi Markus Karjalainen, CEO, ESL Shipping Ltd, +358 400 888 020 markus.karjalainen@eslshipping.com DISTRIBUTION: NASDAQ OMX Helsinki Key media www.aspo.fi Aspo is a conglomerate that owns and develops business operations in the Baltic Sea region focusing on demanding B-to-B customers. Our strong company brands - ESL Shipping, Leipurin, Telko and Kaukomarkkinat - aim to be the market leaders in their sectors. They are responsible for their own operations, customer relationships and the development of these. Together they generate Aspo's goodwill. Aspo's Group structure and business operations are continually developed without any predefined schedules. |
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