EOC INKS US$200M SALE & LEASEBACK DEAL WITH ICBC FINANCIAL LEASING
- Group to reduce debt and strengthen its balance sheet
- EOC will sharpen focus on its accommodation vessel fleet to address growing demand in the offshore accommodation market
EOC Limited (EOC or the Group), one of Asia’s leading providers of offshore production services to the oil and gas (O&G) sector, has successfully signed a US$200 million sale & leaseback arrangement for the Lewek Champion with a unit of ICBC Financial Leasing Co. Ltd (part of the Industrial & Commercial Bank of China (ICBC) group).
The US$200 million price tag for the Group's DP2 pipelay and heavy lift construction vessel, the Lewek Champion, is based on current market valuations. Under the terms of the deal, EOC will leaseback the vessel on a 10-year bareboat charter basis with options to re-purchase from the end of the fifth charter year. EOC expects to report a gain from the sale.
The Lewek Champion itself is on a long term bareboat charter to EMAS AMC, the subsea services arm of Singapore listed Ezra Holdings Limited (Ezra), a leading global installation and offshore services provider to the O&G industry.
EOC's Chief Financial Officer, Mr Jason Goh said: “We plan to use the bulk of the sale proceeds to reduce our bank borrowings as part of our efforts to strengthen EOC's balance sheet to position the company for future growth.
"The demand for accommodation units continues to grow on the back of strong global E&P spending and the need for these units during various stages from field development to de-commissioning. EOC already has three accommodation and construction vessels in our fleet, and we are well positioned to grow in this area. With a healthier balance sheet, the Group will have the flexibility to develop and increase our exposure to this segment when opportunities arise."
As part of the Group's move to streamline its focus, Capt. Adarash Kumar will be appointed EOC's strategic adviser from 1 March 2014. Capt Kumar has almost 30 years of experience in the offshore and marine industry. He has managed and advised various leading offshore oil and gas companies in Southeast Asia, and has held several senior leadership positions.
ABOUT THE COMPANY
www.emasoffshore-cnp.com
Oslo Børs listing: October 2007
EOC Limited currently offers offshore construction and production services that support post-exploration phases in the life cycle of offshore oil & gas (O&G) fields. It has current operations and has operated in Australia, Brunei, India, Indonesia, Malaysia, the Middle East, the Philippines, Vietnam and Thailand.
It owns and/or operates three accommodation and construction vessels and two floating production, storage and offloading (FPSO) vessels, Perisai Kamelia and the Lewek EMAS. The Group recently inked a US$200 million sale & leaseback arrangement on the Lewek Champion, its DP2 pipelay and heavy lift construction vessel which is on a long term bareboat charter to EMAS AMC.
EOC’s successful operational and HSE (health, safety and environment) track records have enabled the Group to establish strong working relationships with leading international oil majors, national oil companies and various independent operators. In addition, these ties have brought in a steady stream of repeat business and recurring income.
The Group is an associate company of Singapore Exchange-listed Ezra Holdings Limited, a leading global offshore contractor and provider of integrated offshore solutions to the O&G industry.
FOR FURTHER ENQUIRIES
Mr. Jason Goh
EOC Limited
65 6590 8209
investor_relations@emasoffshore-cnp.com
Ms. Carol Chong
Oaktree Advisers
65 9475 3167
carolchong@oaktreeadvisers.com
Ms. Nora Cheng
Oaktree Advisers
65 9634 7450
noracheng@oaktreeadvisers.com
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