Modification of the vessel "Aker Wayfarer" and extension of bareboat charter until 2027

15 Sep 2014
Ocean Yield ASA has today been notified that Aker Oilfield Services ("AKOFS"), a subsidiary of Aker Solutions, has been awarded a contract over five years by Petrobras to provide subsea intervention services offshore Brazil with the vessel "Aker Wayfarer". The vessel will be modified in order to become a deepwater subsea equipment support vessel, which will allow it to install and retrieve subsea trees and modules, including subsea structures and manifolds. Ocean Yield ASA has agreed with AKOFS that the investment of approximately USD 100 million will be funded by Ocean Yield against an extension of the current bareboat charter from September 2020 until September 2027. The existing bareboat charter rate for the vessel will continue unchanged until September 2020 and a new bareboat rate for the vessel has been agreed for the period from 2020 until 2027. In addition, a bareboat charter rate covering the modification works will be payable from delivery of the vessel from the yard in second half of 2016 until expiry of the charter in 2027. AKOFS will have options to purchase the vessel in 2021, 2026 and 2027, respectively. Ocean Yield ASA's Chief Executive Officer Lars Solbakken said in a comment: "We are pleased to announce this contract extension for Aker Wayfarer, which further strengthens our charter backlog and earnings visibility. The seven-year charter extension will also contribute to reduce the residual value risk for this vessel." For further information, please contact: Lars Solbakken, CEO of Ocean Yield ASA Phone: +47 24 13 01 90 E-mail: Eirik Eide, CFO of Ocean Yield ASA Phone: +47 24 13 01 91 E-mail: About Ocean Yield: Ocean Yield is a ship owning company with investments within oil-service and industrial shipping. The company focuses on modern assets with long-term charters to solid counterparties. The company has a significant contract backlog that offers visibility with respect to future earnings and dividend capacity. Ocean Yield has an ambition to pay attractive and growing dividends to its shareholders. This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.