General Dynamics Notches 8th Order for Civilian Fuel Tanker

In an era of declining defense budgets, General Dynamics (NYSE: GD  ) is continuing to steer its ship away from military customers, setting course for civilian markets.

Over the past 14 months, General Dynamics -- one of the nation's premier builders of warships for the U.S. Navy -- has announced contracts awarded to its NASSCO subsidiary to build no fewer than seven separate 610-foot-long, 50,000-deadweight-ton, LNG-conversion-ready fuel tankers for civilian customers.

Seabulk Tankers, a subsidiary of SEACOR Holdings, has ordered three such tankers from NASSCO, and taken out an option to build a fourth. On Monday, General Dynamics announced the award of yet another tanker contract, this one coming from American Petroleum Tankers (APT), a wholly owned subsidiary of Kinder Morgan Energy Partners, L.P., and a buyer of four of the company's tankers already.

The new ship, which General Dynamics said will be the same size as the previous vessels, is one of NASSCO's ECO MR design vessels. It will be capable of carrying up to 330,000 barrels of liquefied natural gas in its hold. Construction of the newest ship is scheduled to begin in Q4 2015, with delivery scheduled for Q2 2017. 

In its press release, General Dynamics noted that the latest order, plus NASSCO's existing backlog of tankers and containerships, is a "clear indication that NASSCO is the shipyard of choice for" building these sorts of tankers.

Discover a top stock pick for 2014
Every year, The Motley Fool's chief investment officer hand-picks 1 stock with outstanding potential. Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2996344, ~/Articles/ArticleHandler.aspx, 8/21/2014 10:41:42 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement