Ocean Yield becomes co-owner of dual-fuel boxship

Norway’s shipowner Ocean Yield ASA has decided to acquire 49.9% equity interest in one dual-fuel newbuilding container vessel.

The 15,300 TEU ship is under construction at Hyundai Heavy Industries in Korea and is expected to be delivered in Q3 2022.

It will be fitted with a dual-fuel engine and will be able to operate on LNG. The vessel will commence its 18- year bareboat charter to an unnamed European container line upon delivery. 

As informed, the investment will be made through Box Holdings Inc., a joint venture between Ocean Yield and Quantum Pacific Shipping formed in 2016, which already owns six mega container vessels with long-term charters. The transaction is subject to final documentation. 

“We are pleased to expand our partnership with Quantum Pacific Shipping… This investment will contribute to further increase our charter backlog and future dividend capacity,” Lars Solbakken, CEO of Ocean Yield, commented.

The investment comes only day after Ocean Yield announced it will sell Navig8Tanzanite, a chemical tanker built in 2016, to the vessel’s charterer Navig8 Chemical Tankers for $30.7 million. Navig8 has a purchase option of the vessel after five years, which has now been declared.

On 29 June, Ocean Yield also signed an agreement with Aker Capital to acquire 50% of three Suezmax tankers currently owned 50/50 by Aker and Ocean Yield. After closing the transaction, Ocean Yield will own 100% of the vessels, which have long-term charters to Nordic American Tankers Ltd.

Ocean Yield will also dispose of two 2019-built VLCCs employed on long-term charters to Okeanis Eco Tankers Corp. (OET). In the charter contracts, OET has options to sell the VLCCs to third parties, which have now been declared. 

“The intention is to reinvest the net cash proceeds into new vessels with long-term charters,” Ocean Yield said.

At the end of the first quarter of this year, Ocean Yield had a fleet of 66 vessels, including wholly and partly-owned units.