Ocean Yield Ends Third Quarter in Red

Impairments related to the FPSO Dhirubhai-1 have pushed Oslo-listed Ocean Yield into the red during the third quarter of 2019.

The company said that its net loss for the period amounted to USD 63.2 million, compared to a net profit of USD 39.9 million reported in the same period a year earlier.

This includes the impairment of USD 68.4 million on the book value of the FPSO, which reflects new estimates for future earnings from the FPSO and that it will take more time than earlier envisaged to secure new long-term employment, Ocean Yield explained.

The FPSO Dhirubhai-1 is being evaluated for several employment opportunities, the company said, adding that final investment decisions for these employment opportunities are not expected before the second half of 2020.

Following the impairment, the book value of the FPSO is USD 150 million as of the end of the third quarter of 2019.

Total revenues and other income for the quarter were USD 66.3 million compared with USD 94.9 million reported in the same three-month period a year earlier.

“The market for new leasing transactions is currently offering attractive investment opportunities and Ocean Yield intends to continue the growth of its portfolio of vessels with long term charter. With recent investments in four new vessels, the total number of vessels is now 65 with an increasingly diversified charter backlog of USD 3.5 billion,” Lars Solbakken, CEO of Ocean Yield, said.

The market for long-term leasing transactions for vessels currently offers attractive investment opportunities. So far in 2019, the company has invested more than USD 300 million in eight vessels with long-term charter and sees attractive investment opportunities across several segments.

Hence, Ocean Yield expects to continue “to grow and further diversify the portfolio of vessels on long-term charter and intends to continue its policy of paying attractive dividends to its shareholders.”