General Dynamics to Build Up to 2 More Civilian Tankers

Defense contractor General Dynamics (NYSE: GD  ) continues to transition itself to civilian life.

On Tuesday, for the second time in as many months, military shipbuilder General Dynamics announced that its NASSCO subsidiary has won a contract to build fuel tankers for the Seabulk Tankers subsidiary of SEACOR Holdings (NYSE: CKH  ) .

In the September order, Seabulk hired the company to build a pair of 610-foot long, 50,000 deadweight ton LNG-conversion-ready product carriers, each with the capacity to carry 330,000 barrels of liquefied natural gas. Today's order adds another such vessel to Seabulk's shopping list, plus an option for the shipper to order one more.

Construction of the one firm-ordered vessel will begin in 2015, roughly one year after construction of the two ships from Seabulk's previous order has commenced. Delivery would be in Q4 2016 -- in between the delivery dates for the two previously ordered tankers.

General Dynamics notes that to-date it has received firm orders for seven vessels of this type (plus the one option noted above). In addition to the three or four ships going to Seabulk, the company also won an order in May for four vessels to be built for privately held American Petroleum Tankers.

Financial terms of today's announced construction contract, as with all previous similar civilian contracts discussed above, were not disclosed.


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