Acquisition of four LR2 product tankers with long-term charter
Ocean Yield ASA ("Ocean Yield" or the "Company") is pleased to announce that the Company has agreed to acquire four modern LR2 product tankers with long-term charter to companies owned and guaranteed by Navig8 Topco Holdings Inc. (“Navig8 Group”) from a major Chinese leasing company. The net purchase price is around USD 132 million in total, or an average price of USD 33 million per vessel, depending on the closing date for each vessel, which is expected to be during the fourth quarter of 2019.
The scrubber fitted vessels are built in 2018 and 2019 with about 9 year’s remaining bareboat charters to Navig8 Group. Navig8 Group will have certain options to either sell or acquire the vessels during the charter period, as well as an obligation to purchase the vessels at the end of the charter. Including these vessels, Ocean Yield will own six vessels on long-term charter to Navig8 Group.
Navig8 Group is a fully-integrated provider of maritime services and one of the world's largest independently-owned pool and commercial management companies. With a global network of 13 offices, the group manages a fleet of over 160 vessels across 11 tanker and chemical pools, operates one of the world’s largest bunkering procurement businesses, and also offers technical services and asset management services to shipowners and investors.
Ocean Yield’s Chief Executive Officer Lars Solbakken said in a comment: ”We are pleased to acquire four modern scrubber-fitted LR2 product tankers which increases our fleet to 69 vessels. The net purchase price is substantially below market value, which gives the investment a very attractive risk profile. Total net investments this year have reached USD 438 million and we continue to see attractive growth opportunities as we enter into 2020.”
Company contact:
Eirik Eide (CFO), Tel +47 24 13 01 91
Investor Relations contact:
Marius Magelie (SVP Finance & IR), Tel +47 24 13 01 82
Company information:
Ocean Yield ASA is a ship owning company with investments in vessels on long-term charters. The company has a significant contract backlog that offers visibility with respect to future earnings and dividend capacity.