Ocean Yield: Good Time to Invest in New Ships

Image Courtesy: Ocean Yield

Norwegian shipowner Ocean Yield ASA said it is financially well-positioned for new investments in vessels with long-term charter, following a sale of bonds in American Shipping Company ASA (AMSC). 

“Several shipping segments show indications of bottoming out and orders for new vessels remain low. This, in combination with historically low vessel values, may provide opportunities for attractive investments during 2017,” Ocean Yield said in its financial report for 2016.

In February 2017, the firm completed a refinancing of the bonds in AMSC. Ocean Yield will receive cash proceeds of about USD 156 million including accrued interest and USD 50 million in new bonds in return for the redemption of existing bonds.

Ocean Yield’s financial results show that the firm delivered a lower year-on-year profit. Profit for 2016 went down to USD 77.5 million in 2016 from USD 105 million in 2015.

On the other hand, revenue for 2016 rose to USD 294.4 million from USD 256.7 million in 2015.

In Q4 2016, profit was USD 0.7 million, lower than a profit of USD 28.3 million seen in the same period of 2015. The drop is “largely related” to an impairment charge of USD 35.6 million related to the vessel Lewek Connector.

Revenue for Q4 2016 increased to USD 82 million from USD 65.6 million in the three-month period of 2015.

Higher revenue is attributed to the delivery of six newbuildings during Q4 2016 in addition to full earnings contribution from ships delivered in Q3.

These included two chemical tankers chartered out to Navig8 Chemical Tankers, Navig8 Tourmaline and the Navig8 Tanzanite. Further two chemical tankers, Navig8 Universe and Navig8 Constellation, chartered out to the Navig8 Group, were delivered in October and November.

In addition, Ocean Yield took delivery of the first newbuilding gas carrier from Sinopacific Offshore & Engineering (SOE), China, in November.

In December 2016 and February 2017, Ocean Yield took delivery of the fourth and fifth mega boxships from Samsung Heavy Industries, MSC Mirjam and MSC Rifaya, with long-term charter to Mediterranean Shipping Company.

The final containership in a series of six newbuildings is expected to be delivered in March 2017. All six ships Ocean Yield owns in a joint venture with private shipowner Quantum Pacific Shipping, part of Quantum Pacific Group.

Ocean Yield’s fleet currently has 34 vessels, comprising chemical tankers, LR2 product tankers, gas carriers, mega containerships, pure car & truck carriers (PCTCs) and offshore support vessels.

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SNS2017 – The Southern North Sea Conference & Exhibition

EEEGR’s flagship Southern North Sea conference is the most important event for the energy sector in the East of England. Taking place over two days at the Norfolk Showground Arena in Norwich, SNS2017 will be the largest conference and exhibition EEEGR has ever delivered attracting upwards of 700 delegates from across the industry and supply chain.

Key industry players will gather at this event to discuss and debate issues, network to make new business contacts and re-establish relationships with existing clients.

Why should you attend?

  • Generate fresh leads and meet new contacts in a time and cost-efficient way.
  • Showcase your expertise and share your insights to impress your clients.
  • Meet senior-level delegates looking to learn and seek out new partners.
  • Account manage and liaise with your current clients attending – or bring them along yourself as an account management tool.
  • Months of intensive marketing and advertising to relevant markets ensuring a high level of attendance.
  • Numerous on the day and follow up advertising opportunities available to enhance your positioning.
  • Stay one step ahead of your competitors by being seen and visibly present at the event.
  • Develop your brand and status within industry by being billed as an event sponsor.

SNS2017 – 2 March

Day two of the conference is dedicated to ScottishPower Renewables Supply Chain Event for the East Anglia ONE Wind Farm Project.

ScottishPower Renewables is in the process of finalising its major contracts for the East Anglia One project, and is delighted to announce that these contractors will be attending the ScottishPower Renewables Supply Chain Event at the Norfolk Showground Arena on 2 March 2017.

Occupying the second day of EEEGR’s SNS2017 Conference and Exhibition, the ScottishPower Renewables Supply Chain Event will allow their contractors to engage with businesses and stakeholders in the East of England and further afield as quickly as possible to outline the skills they require and the business opportunities to be created by the project.

Information will be provided on the current status of the project by ScottishPower Renewables Managing Director, Jonathan Cole, and East Anglia One Project Director, Charlie Jordan. There’ll also be information on the scope of works to be carried out, explanations of how to get involved and the opportunity to meet representatives from Seaway Heavy Lifting, Navantia, Lamprell, Harland & Wolff, Roadbridge, Van Oord, Prysmian, VBMS, Nexans, DeepOcean, Peel Ports Great Yarmouth, Siemens and ABPorts.

Up to seven additional suppliers will also be attending, to be confirmed shortly. Opportunities will range from civil and electrical contractors, vessel and ports support, to technicians and logistics.

ScottishPower Renewables is starting construction this year, with the first turbines to be installed by 2019 and the project fully operational during 2020.

Full-access pass holders will be able to take full advantage of the presentations whilst there are also free exhibition-only passes which will give holders the opportunity to network with representatives from these suppliers at their stands. Delegates MUST register prior to the event to be allowed admission. Upgrades of exhibition-only passes may be permissible on payment of the appropriate fee.

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