Ocean Yield: Business Update

STOCKHOLM, June 29, 2021 /PRNewswire/ -- Ocean Yield ASA ("Ocean Yield") has entered into an agreement with Aker Capital AS ("Aker") whereby Ocean Yield will acquire from Aker 50% of three suezmax tankers currently owned 50/50 by Aker and Ocean Yield. After closing of the transaction Ocean Yield will own 100% of the vessels, which have long-term charters to Nordic American Tankers Ltd.

Total book value for the vessels as per Q2 2021 will be approximately USD 107 million and Ocean Yield will pay USD 5.9 million for Aker's 50% share of the equity in the company. The transaction is conducted on arm's lengths basis and in accordance with Ocean Yield's principles for related party transactions. Skandinaviska Enskilda Banken AB has provided a fairness opinion for Ocean Yield.

The transaction is expected to close early in July and are subject to final documentation.

SALE OF TWO VLCCs

Nissos Santorini and Nissos Antiparos are VLCCs built in 2019 and employed on long-term charters to Okeanis Eco Tankers Corp. ("OET"). 

In the charter contracts, OET has options to sell the VLCCs to third parties, which have now been declared. Ocean Yield will receive proceeds of about USD 138 million and record a small book profit from the sales. Net cash proceeds after repayment of outstanding debt will be about USD 30 million. Delivery of the vessels is expected to take place during Q3 and Q4 2021.

The intention is to reinvest the net cash proceeds into new vessels with long-term charters.

CONTACT:
Company contact:
Eirik Eide (CFO)
Tel +47 24 13 01 91

Investor Relations contact:
Marius Magelie (SVP Finance & Investor Relations)
Tel +47 24 13 01 82

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https://news.cision.com/ocean-yield/r/business-update,c3375858

SOURCE Ocean Yield