Ocean Yield ASA: First Quarter 2019 Report
07 May 2019
Fornebu, 7th May 2019, Ocean Yield ASA ("Ocean Yield" or the "Company") announces results for the first quarter ending 31st March 2019.HighlightsDeclared the 23rd consecutive quarterly dividend of USD 0.1910 per share for Q1 2019.EBITDA for Q1 2019 was USD 51.9 million and EBITDA adjusted for finance lease effects was USD 67.8 million.Net profit after tax for Q1 2019 was USD 8.4 million and Adjusted net profit was USD 8.4 million.The FPSO and the Connector had a negative contribution of USD 11.8 million in the quarter.Acquisition and delivery of one modern Suezmax tanker for a total consideration of USD 49.0 million, net of a seller's credit of USD 7 million, with a 13-year bareboat charter to Okeanis Eco Tankers Corp.Agreement with Aker Energy AS regarding an option for a long-term bareboat charter of the FPSO Dhirubhai-1 for oil and gas production in Ghana.Post quarter end, this option has been extended by another 30-days until 30th May 2019.During the first quarter, a new short-term time charter contract for the vessel Connector was secured.Post quarter end, another contract has been secured for a period of 28 days plus options, with start-up immediately following the previous contract. The firm period of this contract runs until 26th May 2019. If all options are exercised, the vessel will be employed until mid-June. ·Post quarter end, Ocean Yield agreed to acquire two modern Ultramax dry bulk vessels for a total consideration of USD 42 million net of a seller's credit, with 11-year bareboat charters to Scorpio Bulkers Inc.Post quarter end, the first in a series of four newbuilding VLCCs with fifteen year bareboat charter to Okeanis Eco Tankers Corp. and with five year sub charter to Koch Shipping Pte. Ltd. was delivered.Lars Solbakken, CEO of Ocean Yield, said in a comment: "Results in the first quarter were negatively impacted by no revenues from the FPSO and very limited revenues from the subsea vessel Connector. With respect to the FPSO, we continue the dialogue with Aker Energy with the aim of securing a new long-term charter for use of the FPSO in Ghana, and Aker Energy has now extended the option period until 30th May 2019. Ocean Yield now has a fleet of 60 vessels on long-term charter, including four VLCCs for delivery during Q2-Q3 that will contribute positively to earnings going forward."Ocean Yield ASA Q1 2019 Financial Report Company contact:Eirik Eide (CFO), Tel +47 24 13 01 91Investor Relations contact:Marius Magelie (SVP Finance & IR), 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.