NOCC: Sale of Partly Owned Vessel ‘Vibeke’

Norwegian Car Carriers ASA reported that the 51% owned subsidiary Eidsiva 2 RoRo KS has executed an agreement for the sale of the 1996 built vessel’ “Vibeke”.

The vessel has been sold for recycling in line with the requirements set out in the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, 2009 (the Hong Kong Convention). The vessel is scheduled to be delivered early December 2013.

On a consolidated basis the sale will generate a preliminary estimated book loss of NOK 11.2 million, including a NOK 4.0 million reversal of IFRS translation differences, which will be booked in the fourth quarter of 2013. The sale of the “Vibeke”, which has been laid up since 2011, will have a significant positive impact on the Company’s results going forward.

Engebret Dahm, CEO at NOCC comments: “The sale of the vessel is part of our strategy to focus mainly on large car carriers with higher revenue capacity. Although the sale generates a book a loss in the fourth quarter, the sale is expected to have a significant positive impact on the Company’s financials going forward.“

NOCC, November 25, 2013