Ocean Yield in profit, despite offshore problems

May 10 2019


Mixed fleet leasing company Ocean Yield declared a net profit of $8.4 mill and an adjusted net profit of $8.4 mill for the first quarter of this year.

The company’s FPSO and the ‘Connector’ provided a negative contribution of $11.8 mill for the quarter.

EBITDA was $51.9 mill and the EBITDA adjusted for finance lease effects was $67.8 mill.

During 1Q19, Ocean Yield took delivery of a modern Suezmax for a total consideration of $49 mill, net of a seller’s credit of $7 mill, with a 13-year bareboat charter to Okeanis Eco Tankers.

Agreement was also reached with Aker Energy regarding an option for a long-term bareboat charter of the FPSO ‘Dhirubhai-1’ for oil and gas production in Ghana. Post quarter end, this option has been extended by another 30-days until 30th May, 2019.

Also during 1Q19, a new short-term timecharter contract for the ‘Connector’ was secured. Post quarter end, another contract has been negotiated for 28 days plus options, with start-up immediately following the previous contract.

The firm period of this contract runs until 26th May, 2019. If all options are exercised, the vessel will be employed until mid-June.

Post quarter end, Ocean Yield agreed to acquire two modern Ultramax drybulk carriers for $42 mill net of a seller’s credit, with 11-year bareboat charters to Scorpio Bulkers.

In addition, the first in a series of four newbuilding VLCCs with 15-year bareboat charter to Okeanis Eco Tankers and a five year sub-charter to Koch Shipping, was delivered.

Lars Solbakken, Ocean Yield CEO, said: “Results in the first quarter were negatively impacted by no revenues from the FPSO and very limited revenues from the subsea vessel ‘Connector’.

“With respect to the FPSO, we continue the dialogue with Aker Energy with the aim of securing a new long-term charter for use of the FPSO in Ghana, and Aker Energy has now extended the option period until 30th May, 2019. Ocean Yield now has a fleet of 60 vessels on long-term charter, including four VLCCs for delivery during Q2-Q3 that will contribute positively to earnings going forward,” he said.

 



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May 2019

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