Acquisition of a gas carrier with long-term charter
10 Oct 2019
Ocean Yield ASA ("Ocean Yield" or the "Company") is pleased to announce that the Company has agreed to acquire an ethylene gas carrier for a total consideration of USD 69.75 million net of a seller's credit, with 13-year bareboat charter to a company 100% owned and guaranteed by Navigator Holdings Ltd. ("Navigator Gas").The vessel is expected to be delivered to the Company during October 2019. Navigator Gas has certain options to acquire the vessel during the charter period. The transaction is subject to final documentation.The vessel, Navigator Aurora, is a 37,300 cbm ethylene gas carrier that was built in 2016. This state-of-the-art vessel is operating on a sub-charter to the European chemical group Borealis for the transportation of ethane from the U.S. East Coast to Europe until December 2026. The propulsion and electrical systems are designed to use LNG as fuel in addition to conventional fuel. Further, the vessel is currently going through a project to also use ethane as fuel.Navigator Gas is listed on the New York Stock Exchange with ticker NVGS. The company owns a sophisticated fleet of 38 gas carriers that play a vital role in the global liquefied gas supply chain, providing gas transportation solutions for energy companies, industrial users and commodity traders. The vessels carry cargoes of liquefied petroleum gas (LPG), petrochemical gases and ammonia.Ocean Yield's Chief Executive Officer Lars Solbakken said in a comment: "We are pleased to further diversify our portfolio of vessels with the investment in an ethylene gas carrier with 13-year charter to Navigator Gas. Including this vessel, Ocean Yield will have three vessels that can use ethane as fuel, reducing emissions compared to vessels that utilize conventional fuel."Company contact:Eirik Eide (CFO), Tel +47 24 13 01 91Investor Relations contact:Marius Magelie (SVP Finance & Investor Relations), Tel +47 24 13 01 82Company 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.