Ocean Yield’s Profit Rises, Weaker Results Lie Ahead
Norwegian shipowner Ocean Yield delivered a stronger net profit in the third quarter of 2018, however, it forecasted weaker results ahead.
The company’s net profit after tax landed at USD 39.9 million for the period ended September 30, increasing from a net profit of USD 31.3 million seen in the same quarter in 2017.
Revenues and other income for the period was up at USD 94.9 million, compared to USD 88.8 reported a year earlier.
During the quarter the company delivered two Suezmax tankers with 10-year charters to Nordic American Tankers, and four 2014-built 3,800 TEU container vessels with 12-year bareboat charters to CMB NV. Ocean Yield also completed its 10-year contract for the FPSO Dhirubhai-1 in India.
Post quarter end, the company delivered two 2015-built 37,000 dwt IMO II chemical tankers with 12-year bareboat charters to companies owned and guaranteed by Ardmore Shipping Corporation and the third suezmax tanker with charter to Nordic American Tankers.
“Ocean Yield delivers strong results for Q3, with an EBITDA, adjusted for finance lease effects, of more than USD 100 million for the first time. We continue to invest in what we believe are attractive transactions and the company has now a fleet of 57 vessels with an EBITDA backlog of USD 3.6 billion, including vessels acquired after the end of the quarter,” Lars Solbakken, CEO of Ocean Yield, said.
“The expiry of the long-term contract for the FPSO Dhirubhai-1 is expected to have a negative effect on the results in the short term, but based on an improved market outlook for FPSOs and on-going discussions, we are optimistic with respect to finding a satisfactory long-term solution for this unit.”