I.M. Skaugen Defers Debt Payment for One Year
Norway-based owner of liquefied natural gas (LNG) carriers I.M. Skaugen has secured extension of its debt maturity until 2018.
The agreements with all relevant parties were signed on May 19 and 23, 2017, with all conditions expected to be completed by June 8, 2017, the company said.
As a result, the extension will enable the company to move forward with its refinancing plan for the deferment of the 2017 maturity with all its financial lenders, which is now expected to be brough to fruition in the coming 10 months.
As disclosed, the intention has been to allow the company to better match maturity with its cash flow generating capacity going forward.
“On the basis of a successful execution of the “Proof of Concept” SSLNG project, IMS will have this financial ability to secure a refinancing structure with maturity to match the expected future cashflow,” the company further added.
In January 2017, IMSK signed long-term contracts for a SSLNG project that employs three multigas (MG) vessels on a timecharter for SSLNG contract. The contract was reconfirmed on May 24 and June 1 with definitive agreements and is expected to reach financial close soon. The first gas is expected to be transported in July 2017.
Under the contract, I.M. Skaugen will provide the shuttle/feeder services and floating storage support, as well as storage and offloading of LNG for a client with existing gas fired power plants in Africa.
The revenues from these SSLNG contracts will be about USD 39 million annualized when operational and equal to about USD 273 mill over 7 years, IMSK said.
For the first quarter this year, IMSK posted a loss of USD 6 mill, narrowing a loss of USD 9.5 million from the previous quarter.
Due to the prevailing difficult market conditions within the LPG/Petchem gas segments, the spot trading of the ships is still a disappointment, the company said. The conditions in the LPG / Ethylene segment were aslo challenging during the quarter.
I.M. Skaugen has a fleet of 15 gas carriers, operated in a revenue sharing pool managed by Norgas Carriers.