Ocean Yield ASA: Second quarter and first half year results 2020

09 Jul 2020
Fornebu, 9th July 2020, Ocean Yield ASA (“Ocean Yield” or the “Company”) announces results for the second quarter and first half year ending 30th June 2020.HighlightsThe Board of Directors has declared a dividend of USD 0.05 per share. This is the 28th consecutive quarterly dividend declared by the Company. EBITDA for Q2 2020 was USD 86.3 million. This includes USD 27.4 million of revenue related to the vessel Höegh Xiamen, as further described below. EBITDA adjusted for finance lease effects and excluding the revenue related to the Höegh Xiamen was USD 86.0 million. Net Profit after tax for continuing operations for Q2 2020 was USD 19.2 million. Net profit after tax, including discontinued operations was USD 16.5 million. Adjusted net profit for continuing operations for Q2 2020 was USD 24.0 million.In May, Ocean Yield’s entered  into a restructuring implementation agreement with Solstad Offshore ASA (“Solstad”) and its subsidiaries for the vessels Far Senator and Far Statesman. The restructuring was agreed after a standstill period with Solstad’s creditors that was initiated in December 2018 and is expected to close during Q3 2020.In June, the vessel Navig8 Aquamarine was delivered to Navig8 Chemical Tankers Ltd.(“Navig8”), following the exercise of the five year purchase options on two vessels on long-term bareboat charter. Post quarter end, the second vessel, the Navig8 Amessi was also delivered back to Navig8.  In June, Ocean Yield entered into an agreement with Aker Capital AS whereby Aker acquired from Ocean Yield 50% interest in 7 tankers with long-term charters. In June, the PCTC vessel Höegh Xiamen caught fire while loading vehicles in Florida. The vessel has been declared a constructive total loss and Ocean Yield expects to receive an insurance settlement of USD 26.3 million in Q3.Post quarter end, the newcastlemax dry-bulk vessel Mineral Qingdao was delivered to Ocean Yield and the vessel commenced a 15-year bareboat charter to CMB NV upon delivery. Lars Solbakken, CEO of Ocean Yield, said in a comment: “The second quarter was dominated by the COVID-19 pandemic, which caused significant market volatility. With most of our vessels on long-term, fixed rate charters, the pandemic had limited effect on our revenues and Ocean Yield used the second quarter to strengthen the balance sheet.”Ocean Yield ASA Q2 2020 reportCompany contact:Eirik Eide (CFO), Tel +47 24 13 01 91Investor Relations contact:Marius Magelie (SVP Finance & Investor Relations), 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.