New Boxships Drive Ocean Yield’s Earnings up

Norwegian ship-owner Ocean Yield ASA has seen its net profit reach USD 36.8 million in the first quarter of 2017, compared to USD 18.6 million seen in the corresponding period in 2016.

The company’s revenues for the period increased to USD 78.6 million from USD 66.1 million reported in the quarter ended March 31, 2016, positively affected by delivery of another two container vessels during the quarter.

“We are pleased to present the results from Q1 2017, with the 14th consecutive quarterly increase in dividends and a strong net profit, despite lower earnings from the Lewek Connector,” Lars Solbakken, CEO of Ocean Yield ASA, said.

In February 2017 the bareboat charter for the vessel Lewek Connector was terminated by Ocean Yield and a new four-month charter at a reduced rate was agreed.

Following the termination of the bareboat charter, Ocean Yield has agreed with the lenders financing the vessel Lewek Connector, that the lenders remove any requirements in the loan agreement related to the bareboat charter of the vessel, against a partial prepayment of five future instalments, in total USD 15.2 million.

“After a period with soft market conditions in both shipping and offshore, we are of the opinion that we have passed the bottom of this cycle in several shipping and offshore segments. We are therefore actively pursuing new investment opportunities in order to further expand our portfolio of vessels on long-term charter,” Solbakken added.

In February and March 2017, Ocean Yield took delivery of the fifth and sixth mega-container vessels from Samsung Heavy Industries, named MSC Rifaya and MSC Leanne, with fifteen-year charters to a major European container line. These were the final container vessels in a series of six newbuildings where Ocean Yield owns 49.5% through Box Holdings Inc.

At the end of the first quarter of 2017, Ocean Yield had 33 vessels delivered and one newbuilding gas vessel scheduled for delivery in June or July 2017.

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